Mortgage Rates Reach Nine-Month Low in Ireland

In the past two months, home-loan rates in Ireland have decreased, reaching their lowest level in nine months, according to the Central Bank of Ireland. The average interest rate on new mortgages fell to 4.17% in May, down 0.07 percentage points from April, but Ireland still has the sixth highest rates in the Eurozone. The Eurozone average remains steady at 3.80%, with rates varying significantly across the region.
Lenders such as AIB, Haven, EBS, Bank of Ireland, PTSB, and Avant Money have reduced their rates following anticipated cuts in European Central Bank (ECB) rates. Daragh Cassidy from mortgage broker Bonkers.ie expects further rate reductions in the coming months. Despite these decreases, mortgage holders on fixed rates ending soon may face higher rollover rates of around 4-4.5%.
Meanwhile, Spry Finance, a non-bank lender specializing in equity release loans, has seen a 40% increase in the value of lifetime loan offers in the first half of the year. This contrasts with traditional banks, which have experienced a sharp decline in mortgage switching activity. Spry Finance’s growth highlights a rising demand for mortgage switching options among older homeowners.