Mortgage rates in Ireland for 2020

At first glance, mortgage rates in Ireland might look much like those in England. But Ireland has experienced a different economic trajectory in the last few years, so the range of mortgage rates will likewise be different.

In Ireland five-year fixed mortgage rates can be a full percentage point lower than those in England, even though they are still among the highest in the Eurozone. These rates are not available for everyone but would be an option for certain groups who have an existing mortgage of over €300,000 and can offer at least a 20% deposit or similar equity on any existing property, using a calculator will make this clear. Ten-year fixed rate mortgages are also available, although at a higher rate of interest, naturally. Switchers and home movers will enjoy a better rate to some, as is always the case with these mortgages.

For those who don’t have access to equity or whose deposit is lower, there are other options including fixed rate mortgages for five or more years. Even though they may not be the best value, they are still affordable. The Central Bank’s loan-to-income rules apply unless a lender can show a very good reason why they should be exempt, so most lenders should expect to be subject to these rates.

Fixed rates of anything more than seven years for mortgage rates in Ireland have been rare, although they have been popular where they can be found. At least new buyers could budget for five years of mortgage payments and know what they were paying every month. Now they have a few more years’ grace. Ten-year fixed rate options are now an option; although buyers should be aware that this may mean a major hike in payments after the 10-year period is over. Cashback offers are not always the best option although the immediate lure of these offers may be strong. The savings offered by long term fixed rate offers are better, where they are available.

Fixed Rate Popularity

Fixed rate mortgage rates in Ireland remain popular because they mean buyers can budget effectively for a fixed amount every month. For those on a lower or fixed monthly budget, being able to know how much recurring bills may cost is imperative, so a fixed rate mortgage of any length is equivalent to a direct debit in that sense – everyone knows how much needs to be paid every month. For that very reason, variable rate mortgages have fallen in popularity. Simply, they are more difficult to budget for effectively, especially on a lower wage job where income may be variable. They can be manageable, but a fixed rate term, renegotiated every few years, is preferable.

Fixed rate mortgage rates in Ireland seem to be the way to go, for budgeting reasons if nothing else. Many lenders are now offering such mortgages, which are easier to apply for as long as the applicant can show they have adequate income every month to meet the required payment. At least house buyers should ask about the availability of such deals with their preferred lender or financial adviser, if only to ensure that they consider all options.