Mortgage interest rates shot up in January, and there are more rises on the way

Rising interest rates will have a major impact on affordability of homes, with mortgages now costing hundreds of euro more a month than last year, say experts

Ireland continues to have among the cheapest mortgage rates in the Eurozone, for now at least. Picture: iStock

Irish mortgage interest rates shot up in January, according to new figures from the Central Bank. The average interest rate on a new mortgage was 2.93%, up from 2.69% in December. This leaves rates at their highest level since October 2019.

Despite the big jump, Ireland continues to have among the cheapest mortgage rates in the eurozone, for now at least, with only France and Malta recording lower rates than Ireland in January.