Brokers Ireland Welcomes Interest Rate Cuts

Press Release

Wednesday 30^th April 2025

Brokers Ireland has welcomed this morning’s announcement from Haven of reductions in non-green Fixed Rate Mortgages for new and existing customers with effect from 13th May. (See detail below).

Rachel McGovern, Deputy Chief Executive at Brokers Ireland said: “These reductions at 0.5% across fixed rates from one to ten years will make a substantial difference for borrowers, and augurs well from a competition point of view.

“Added to this are indications from the ECB that it may further cut rates at its June meeting,” she said.

She said thousands, in the region of 80,000 fixed rate borrowers, who had taken out mortgages a few years ago when rates were at their lowest, had feared they would face much increased rates.  “However, this newer competitive environment is easing those worries considerably,” she said.

“We would advise mortgage holders to take professional advice, there are substantial savings to be gained.”

Ms McGovern reiterated Brokers Ireland’s call for a Government initiative to assist the 7,000 mortgage holders whom recent research by the Oireachtas library found are paying interest rates of 8.5% and above, with little option to switch.

She said the situation is particularly difficult since these borrowers had received assurances when their mortgages were transferred to the credit servicing firms now controlling them that they would enjoy similar terms to those they had with the original lender.

In relation to savers she said there needs to be more incentives for savers to move from very low yielding savings accounts to options that deliver better returns. And she pointed to a recent Central Bank publication showing Irish households’ preference for shorter-term, more accessible deposit account types relative to the average in the euro area, and this has cost them almost €800 million in unearned interest in 2024 alone.

Ms McGovern called for the urgent implementation of the recommendations of the Funds Sector Review by the Department of Finance.

“This report recognised the reality that there are massive tax disincentives that discourage people from opting into better value savings products,” she said.

The new Fixed Rates Haven PDH are as follows:

Ends

Note: Brokers Ireland operates the ‘Future Financial Experts’ Transition Year programme aimed at communicating good financial skills to students and creating awareness around financial concepts.

Further information:

Rachel McGovern,    Deputy Chief Executive, Brokers Ireland

Tel. 086-8259938

Mairéad Foley, Foley Ryan Communications

Tel. 086-2556764