Interest Rates – Brokers Ireland Urges Mortgage Holders To Review

Press Release

Wednesday 13^th August 2025

Responding to today’s Central Bank Retail Interest Rates publication for June showing the weighted average interest rate on new mortgages at 3.6%, down just one basis point in the month, Brokers Ireland said while lenders could be doing more, given how the ECB rate has dropped since June 2024, what is really appalling is the consistently poor savings rate of 0.13%.”

Central Bank figures show that at the end of May Irish consumers had €166 billion in savings with Irish banks and of this, over €142 billion is held in overnight deposit accounts attracting 0.13% in interest.

On mortgages Rachel McGovern, Brokers Ireland Deputy Chief Executive said while more competition is entering the mortgage market the benefit may become more evident later in the year.

She noted that an increasing number of new mortgage holders are opting for fixed rates which now constitute 85% of new mortgages.

“Mortgage borrowers are seeking security,” she said. “With property prices continuing to increase they are taking on ever higher levels of debt.”

She said better security could be achieved if lenders were offering the type of long-term fixed rates mortgages largely withdrawn from the market when the ECB began reducing rates in June 2024.

“Borrowers should review their options on an annual basis, especially with increasing competition, and crucially, the increasing value of their properties which could, with an improved loan-to-value ratio, make them eligible for a better mortgage rate,” she said.

She advised existing and new mortgage holders to consider their positions extremely carefully and take impartial advice, with sizeable savings to be achieved for many borrowers, depending on individual circumstances.

An improved Building Energy Rating may also help a mortgage holder to achieve a green loan with a lower interest rate.

Ms McGovern said there are around seven thousand Irish mortgage holders “getting a very raw deal” with excessive interest rates of 8.5% and above, according to research by the Oireachtas library. These are held by non-bank lenders.

“These borrowers are in an extremely difficult position, having been led to believe when their mortgages were unwillingly transferred from the pillar banks to non-bank entities, that they would enjoy the same terms. That has not turned out to be the case.”

She said they deserve special attention. These are the very people who can least afford such exorbitant interest rates. It is because they were struggling in the first place that their loans were transferred. 

“And the absurdity of the situation is that the lenders got rescued but individual mortgage holders have not,” she said.

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