Mortgage interest rates down slightly as banks 'slow' to pass on ECB cuts

Interest rate on new home loans was 3.79% on average at the end of February, down 0.03% from January and 0.5% down from the same month in 2024

'Despite the ECB’s rate cuts, Ireland remains one of the five most expensive countries in the EU for mortgage rates,' said NFP Ireland senior mortgage advisor Ross Lynch. Picture: iStock

The interest rates charged on new mortgages declined slightly during February with further rate cuts expected but Irish mortgage holders may not benefit significantly given the “slow pace at which banks have reduced their rates”.

This comes as the European Central Bank (ECB) is due to meet over two days next week in order to discuss whether further interest rate cuts are warranted.