Will Mortgage Rates Go Down in Ireland? – A 2025 Outlook

The question on every homeowner’s and potential buyer’s mind is whether mortgage rates will decrease in Ireland. Let’s look at what experts are predicting for the coming year.

Current Market Situation

As of early 2025, the Irish mortgage market has seen significant changes. Fixed rates currently remain lower than variable rates, with the lowest variable rate sitting at 3.95% and the lowest non-Green fixed rate at 3.2% for a 4-year term ².

Expert Predictions for 2025

According to financial analysts and mortgage experts, we can expect to see some positive changes in mortgage rates:

• The European Central Bank (ECB) is expected to continue its rate cut cycle into 2025 ²
• Experts predict rates could fall to around 2.75% by 2025 ¹
• Most lenders have already implemented rate cuts of up to 1% in the latter half of 2024 ²

Market Competition and Rate Variations

The Irish mortgage market now has 12 lenders offering various options to consumers ². This increased competition is good news for borrowers, as it helps maintain competitive rates. Currently, there’s a significant disparity in the market:

• Lowest rates start from 3%
• Highest rates can reach up to 6.4%
• Green rates typically offer the most favorable terms ²

Factors Affecting Your Rate

Several factors will influence the rate you can secure:

1. Loan-to-Value (LTV) Ratio: Those with lower LTVs can access better rates, with differences of up to 0.55% for loans below 80% LTV ²
2. Property Type: Homes with higher energy efficiency ratings (A or B) often qualify for better rates
3. Market Competition: New entrants like MoCo and Nua Money have created more competitive pressure ²

Looking Ahead

While experts are optimistic about rate decreases, it’s important to note that any changes may take time to reach consumers. Banks typically don’t immediately pass on ECB rate changes to customers, whether rates are increasing or decreasing ³.

Action Steps for Borrowers

1. Monitor the market regularly for rate changes
2. Consider both fixed and variable rate options
3. Compare offers from different lenders
4. Consider green mortgage options if applicable
5. Evaluate your loan-to-value ratio to secure better rates

Remember that while predictions suggest a downward trend in rates, market conditions can change rapidly. It’s always wise to seek professional advice before making any significant mortgage decisions.

Stay informed with MortgageBible.ie for the latest updates and expert insights on Irish mortgage rates and market trends.