Are you on the lookout for a new mortgage? It’s always important to understand the different options and rates available to you. Here’s what’s new: Mortgage Interest Rates Ireland 2025.
Lets start with Tracker Mortgages and ECB cuts –
The ECB cut its main refinancing rate by 0.25% this month again bringing the ECB base rate to 2.15%.
This was the fourth cut in 2025 and the seventh reduction since the peak of 4.5% in Sept 2023.
Inflation and interest rates are sensitive to the Geopolitical environment and right so it is not a certainty that rates will continue to reduce.
This is the fourth rate cut in 2025, a total drop of 1% so far this year. The immediate beneficiaries of an ECB cut are the over 120,000 mortgage holders with tracker rates. The average tracker mortgage holder with a margin of 1.1% to ECB, will now see savings of €52 per month for every €100,000 owed over a 20-year term.
What if you don’t have a tracker mortgage:
Tracker mortgage holders rates are linked directly to the ECB rate so a cut in the ECB is passed on.
For anyone who does not have a tracker mortgage then its important to understand that banks fund their mortgage lending in different ways – they borrow money from each other in the euro area and this is called the Euribor rate or they use deposits they may hold from savers to lend or they use a combination of both.
In general, the cost a bank has to lend to you is reflective of the cost it has to acquire funds – so the Euribor rate or the return they give to deposit holders – plus they will also want to cover their costs so their operating costs, bad debt provision, capital reserving costs and then their profit margin.
The cost of funds to the banks has been dropping over the last 18 months and as such you will see many lenders having reduced rates by as much as 1.5% – so today’s rate environment is significantly improved for those looking to take out a new mortgage or switch lender.
What type of mortgage rates are available in Ireland?
There are three types of rates in Ireland right now, fixed rates, variable rates and the Flex Mortgage rate. Fixed rates mean you pay a set amount each month for a fixed period e.g. 3 year fixed rate, your repayment will remain the same for 36 months. You can get a fixed rate for 1 year right out to 30 years fixed.
Variable rates can increase or decrease in line with a lenders own costs and general market forces. Variable Fixed Mortgage Interest Rates Ireland 2025: rates in Ireland range from 3.75% to 6.15%.
A flex mortgage rate is a new product in Ireland since March 2025 and is a fixed margin to the 12-month Euribor rate. This is a variable product available from Avant Money and its currently (as at June 2025) priced from 2.98% so an excellent variable rate.
For more, see How to Get the Lowest Mortgage Interest Rate.
What are the lowest mortgage rates in Ireland currently?
As at June 2025, Fixed rates start from as low as 3%, while variable rates begin at 2.98%, but there is a huge difference in rates as some lenders still have rates of over 6%.
Mortgage Rates are determined by – Green rates, loan to value, mortgage levels – banks all differ when it comes to rates making it so important to speak with our team at doddl as we work with all major lenders and can advise you on the best options for you.
Mortgage Switching
Reviewing your rate and switching your mortgage when it makes sense to do so is really vitally important. Mortgage switching is a process to move your mortgage from one lender to another to save on interest. You will only ever switch if it makes financial sense to do so but you will only ever know if it makes sense by asking the question. You could save tens of thousands by reviewing your mortgage rate at regular intervals.
Mortgage rates have gone up so you will be paying more than pre 2022 our job at doddl is to ensure you pay as little as possible.
Some of the ways our clients are saving big –
- Lower loan to values – double digit property price inflation means that someone who purchased a home just over a year ago with a 10% deposit will most likely now hit an 80% loan to value threshold – this means they can unlock much better rates
- Home improvements – figures for those taking out loans to fund home improvements have soared so we are now investing more in our homes, most likely because its very challenging to find a new home.
- Mortgages over €250,000
- Seeking to carry out home improvements taking an equity release and locking down a better rate on the overall mortgage.
Switching – Why it’s easier than you might think –
Switching mortgage is not as easy as switching utilities but the rewards are so much greater. There is an application process but all documentation should be readily available – payslips, bank statements all available online.
How much can you save by switching?
The latest Quarterly doddl.ie Mortgage Switching Index shows that for the average mortgage drawn down in Q1 2025, a mortgage level of €341,078 repaid over a 25 year term the difference between highest and lowest rates, 3% -v- 6.15% means you could save up to €7,300 per annum by switching.
Switching is totally different to purchasing when you had the stress of trying to buy a home, bidding etc together with the mortgage. Switching is a transaction to move your mortgage from one lender to another to save on interest – it’s a real positive.
Cashback offers mean that 7 of the major lenders now offer switcher cashback of up to 2% of the mortgage back in cash, e.g. €350,000 mortgage, €7,000 cashback.
Our digital mortgage experience (DMx) at doddl make the process easier and quicker and our team of specialist mortgage advisors are there at every stage to answer your questions. To get started, see our online Mortgage Switching Calculator.
How doddl can help?
We work with all major lenders and can offer lowest market rates plus work with lenders that you cannot access yourself directly. Our team of mortgage experts can guide you from enquiry right through to completion of your mortgage. We will also check in at regular intervals to ensure you never pay more than you need to on your mortgage.
If we can assist with a new mortgage or reviewing your existing mortgage rate and terms please do contact us at -> Start Here!
