Mortgage rates fall to lowest level in nearly two years as gap with euro area narrows
Irish borrowers see gradual easing in new mortgage costs, but savings rates remain modest
14 January 2026 | đŸ“§Â editor@ipropertyradio.com
Irish mortgage interest rates continued to ease in November, reaching their lowest level since early 2023, according to the latest Retail Interest Rates Statistical Release from the Central Bank of Ireland.
The weighted average interest rate on new Irish mortgage agreements stood at 3.53% at the end of November 2025. This represents a slight monthly decline of 3 basis points and a sharper annual fall of 44 basis points. While Irish rates remain above the euro area average of 3.33%, the gap has narrowed to 20 basis points, the smallest difference recorded since December 2023. 2025m11_ie_retail_interest_rate…
Fixed-rate mortgages continue to dominate the market, accounting for 89% of new mortgage lending by volume, up from 70% a year earlier. The average rate on new fixed-rate mortgages was 3.46%, down 33 basis points compared with November 2024. Variable-rate mortgages, while less common, also saw easing, with the average rate falling to 4.08%, down 33 basis points year on year.
Despite lower rates, overall borrowing activity remained subdued. The total value of pure new mortgage agreements declined to €1.1 billion in November, although this was still 6% higher than the same month last year. At the same time, mortgage renegotiations increased, with €391 million renegotiated during the month, reflecting continued borrower engagement with rate switching and refinancing options.
For savers, returns remained modest. The average interest rate on household overnight deposits was unchanged at 0.13%. Rates on new household term deposits slipped slightly to 1.86%, down 74 basis points compared with November 2024. While Irish term deposit rates remain marginally higher than the euro area average, Ireland ranked just 10th among euro area countries in November.
Consumer loan rates moved in the opposite direction, rising to an average of 7.59% in November, with most new consumer lending continuing to be issued at floating rates.
Overall, the latest figures point to a gradual easing in borrowing costs for mortgage holders, particularly those opting for fixed rates, but with limited improvement in returns for household savers. For prospective buyers and existing borrowers, the data underlines the importance of comparing rates and considering refinancing as market conditions continue to adjust.
