Interest Rates – Many Consumers Can Improve Their Mortgage Rates – Brokers Ireland

Press Release

Wednesday 14th May 2025

Responding to today’s Central Bank Retail Interest Rates publication for March showing the weighted average interest rate on new mortgages at 3.77 per cent, or 3.58 per cent on new fixed rates which constitute 77 per cent of new mortgages, Brokers Ireland advised existing and new mortgage holders to consider their positions very carefully and take impartial advice.

Rachel McGovern, Brokers Ireland Deputy Chief Executive said: “Without doubt there are savings to be achieved for many borrowers, and these can be substantial, depending on your particular circumstances,” she said.

Factors that can yield savings include an improved loan-to-value on your home, that is, the ratio of your loan to the value of your home.  “With property prices increasing many mortgage holders will now have a better LTV, enabling them achieve a better interest rate on the loan,” she said. “This is something borrowers tend not to do but it is advisable to review it on a yearly basis.”

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

Ms McGovern said while competition is improving it is estimated that up to nine in ten mortgages are held by just three lenders – AIB, Bank of Ireland and PTSB.

In terms of the outlook for interest rates she said; “While up to now most commentators were predicting further rate cuts by the ECB, which would obviously impact Irish borrowers too, doubts are beginning to emerge that they will take place as had been confidently predicted in recent months.”

She said with current global volatility mortgage holders need to consider their individual situations very carefully.

And she said savings rates remain “appalling low” at just 0.13% on overnight deposits in which consumers hold the vast majority of bank savings, over €140 billion.

“We are an outlier in Ireland in holding this very high level of savings in such low yielding accounts, and much of that is to do with inequitable tax policies that disincentivise savers from moving to better yielding alternatives.”

In this regard Brokers Ireland has recently called on the Government to implement the recommendations of the Department of Finance’s Funds Review Report from October last.

“The Government should immediately introduce the recommendations of its own Funds Sector Review to enable consumers get a better return on their money and remove the massive tax disincentives that keep them defaulting to bank deposits with very poor outcomes,” she said.

A recent Central Bank report found Irish households’ preference for shorter-term, more accessible deposit account types relative to average euro area has cost them almost €800 million in unearned interest in 2024 alone.

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