Ireland remained Europe’s fastest growing economy last year after expanding at a pace not seen since the heyday of the Celtic Tiger 15 years ago.

Mortgage holders are set to reap the benefits of a looming price war between the major lenders with one cut already promising over €1,000 a year in savings to mortgage switchers.

Mortgage lending values are expected to remain stable at just over €3bn this year, with growth slowed by a shortage of available properties and the lingering arrears crisis rather than a lack of available credit, one market expert has estimated.

Just under 1,700 mortgages were approved by Irish lenders in October, representing a monthly increase of 10.3% in the homeloan approval rate.