Updated / Wednesday, 10 Dec 2025 12:53
New figures from the Central Bank show that the average interest rate on new mortgages here eased to 3.56% at the end of October, down three basis points from the previous month and the lowest level since March 2023.
The euro area equivalent was 3.33%, which made Irish mortgage rates the sixth highest in the euro zone, one place higher than at the end of September.
Latvia had the highest mortgage rate at 3.96% in October, followed by Estonia (3.75%) and Germany (3.73%). Malta had the lowest rate at 1.96%, with Spain at 2.67% and Slovenia at 2.8%.
The Central Bank said the average interest rate on new fixed rate mortgage agreements, which constitute 90% of the volume of new mortgage deals, stood at 3.49% in October.
This was down two basis points from the previous month and a drop of 40 basis points from October of last year.
Meanwhile, the average interest rate on new variable rate mortgage agreements was 4.17% in October, an increase of nine basis points from September and 22 basis points lower in annual terms.
The figures show that the total volume of pure new mortgage agreements fell to €1.1 billion in October.
Today’s figures also reveal that the average interest rate on household overnight deposits stood at 0.13% in October 2025, unchanged since December 2024.
Commenting on today’s figures, Donal Magee, Senior Underwriter at Nua Money, said the fall in the average interest rate on new mortgages will be a relief to Irish mortgage holders as this is an improvement on September’s report, when average costs increased.
This had prompted concern at the time that the trend of falling mortgage costs had come to an end.
Mr Magee said that mortgage holders need to be mindful that it is unlikely there will be any more ECB rate cuts before the end of the year and possibly even during the first half of the New Year.
“Indeed, the ECB recently hinted that its next move could be a hike,” he stated.
“It has never been more important for Irish mortgage holders to be proactive about getting the best deal on their mortgage,” he said.
“While strong economic growth has been forecast for the Irish economy for 2025, that growth is expected to fall back significantly in 2026. If this arises, many mortgage borrowers could find themselves under pressure if they stretch their finances too much,” he cautioned.
