Dublin: Mortgage rates have surged for the third consecutive month, posing challenges for borrowers across Ireland.
Recent data from the Central Bank reveals that in March, mortgage interest rates reached their highest point since 2017. This increase has widened the gap between Irish mortgage rates and those in the eurozone to its broadest level since July 2022.
With an average mortgage interest rate of 4.31%, Ireland now ranks as the sixth highest among eurozone countries, up from seventh place previously. Conversely, mortgage rates within the eurozone have seen a downward trend for the fourth consecutive month, currently standing at 3.84%.
Mortgage rate disparities are evident across eurozone nations, with Malta boasting the lowest rate at 1.96% and Latvia recording the highest at 6.16%.
Despite these fluctuations, there has been a decline in the total value of mortgage agreements, down by 2% compared to February. March estimates from the Central Bank indicate a total value of 630 million euros, marking a 14% decrease on an annualised basis. Pre-negotiated mortgages have also experienced a decline, dropping from €174 million in the previous month to €145 million in March.
Additionally, interest rates on household overnight deposits in Ireland remain lower than the eurozone average, standing at 0.13% compared to 0.39%.
In response to market dynamics, financial institutions such as AIB, EBS, and Haven have recently reduced their green mortgage rates. Similarly, Permanent TSB (PTSB) has lowered its fixed rates for the second time since December. Notably, Bank of Ireland has introduced a new flat variable rate of 4.15% for all customers, a departure from the previous tiered system which saw rates as high as 4.75% in certain cases.
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