Average new mortgage rates in Ireland have settled around 3.5% in 2026 — a far cry from the record lows of 2021, but well below last year’s peaks. The exact rate you get depends heavily on your loan-to-value ratio, your choice between fixed and variable, and which lender you approach.

4 related posts

Average new Irish mortgage rate: 3.5% · Avant Flex variable (LTV ≤80%): 3.47% · AIB 1 Year Fixed: 5.60% · AIB 5 Year Fixed: 6.20%+ · Overpayment allowance (Avant): 10%

Quick snapshot

1Confirmed facts
2What’s unclear
  • Whether rates will drop back to 3% — no ECB commitment confirmed
  • Exact 30-year fixed options vary by lender without a published standardised product
  • Full eligibility criteria for green mortgage discounts not always disclosed
3Timeline signal
  • Avant Money cut 3-, 4- and 5-year fixed rates recently in 2026 (Bonkers.ie)
  • New high-value mortgage launched at 3.20% for loans over €300,000 (Bonkers.ie)
  • AIB current rates published April 2026 (Bonkers.ie)
4What’s next
  • ECB rate decisions will continue to shape variable mortgage movements
  • More lenders likely to adjust fixed rates in response to market conditions
  • Green mortgage products expanding as energy efficiency standards rise

Current mortgage rates across Ireland’s major lenders as of 2026.

Label Value
Top Variable Rate 3.47% (Avant Flex, LTV ≤80%)
Average New Rate 3.5%
AIB Short Fixed 5.60% (1 Year)
Overpayment Max 10% (Avant)
Avant 4yr High-Value Fixed 3.20% (loans over €300k)
Best 3yr Fixed 3.30% (Bank of Ireland, ≤60% LTV)
AIB 10yr Fixed >80% LTV 4.20% (APRC 4.28%)

What are current mortgage rates in Ireland?

Ireland’s mortgage market in 2026 offers a wide spread between the cheapest and most expensive products. Average new mortgage rates have settled at around 3.5%, down from last year’s peaks but still well above the 2021 lows that many homeowners locked in (Switcher.ie). The exact rate you get depends heavily on your loan-to-value ratio, your choice between fixed and variable, and which lender you approach.

Switcher.ie overview

Switcher’s tracker shows the market has normalised somewhat after the volatility of 2023–2024. For borrowers with equity of 50% or more, variable rates from the most competitive lenders start comfortably below 4%. The gap between the best variable deals and the cheapest fixed products has narrowed, giving buyers more flexibility than a year ago.

AIB rates

AIB publishes its full rate card directly on its website. For standard variable rate products, the bank charges 5.20% (AIB official site). Its variable rate for borrowers with ≤50% LTV sits at 3.75%, rising to 4.15% for those with >80% LTV. Fixed products vary widely: a 1-year fixed comes in at 5.60%, while longer terms reach 6.20% or higher. AIB’s 10-year fixed for >80% LTV is 4.20% with an APRC of 4.28% (AIB official site).

PTSB rates

permanent tsb operates in the competitive fixed-rate space, with its green mortgage offering the lowest published rate in the market at 2.85% for A1–B3 energy-rated properties. Its standard variable rate sits between 4.40% and 4.50% across LTV bands, making it a mid-market option for borrowers who don’t qualify for the green discount.

EBS rates

EBS targets borrowers seeking certainty through fixed-rate products. Its 3-year fixed APRC stands at 4.30% across all LTV bands, positioning it above the most competitive challenger lenders but below the major banks on shorter fixed terms. EBS works well for borrowers who prefer the security of a building society model over a commercial bank.

Avant rates

Avant Money has positioned itself as Ireland’s rate leader across multiple categories. Its Flex Mortgage variable rate for borrowers with 80–90% LTV is currently 3.18%, making it the lowest published variable rate in the Irish market (Park Financial). The lender also recently reduced its 3-, 4- and 5-year fixed rates, with a standout 4-year high-value fixed rate of 3.20% available for loans over €300,000 (Bonkers.ie). Avant’s 3-year fixed APRC sits at 3.74%, while its 15-year fixed product comes in at 2.29% for borrowers with less than 60% LTV.

The implication: Avant Money and Bank of Ireland are currently the lenders to benchmark against, but borrowers should also factor in each lender’s overpayment flexibility — Avant allows up to 10% overpayment annually, which can substantially reduce total interest paid over the life of the loan.

Why this matters

A 0.5% difference on a €300,000 mortgage over 30 years translates to roughly €28,000 in additional interest. Comparing at least three lenders before applying is the single most valuable step a borrower can take.

What is the present 30-year mortgage rate?

True 30-year fixed-rate products are less common in Ireland than in some other markets, but several lenders offer products that run for 10 to 30 years or allow long-term fixed rate certainty. The market has moved toward shorter fixed terms (1–5 years) as standard, with longer durations typically available on request or through specific green mortgage products.

30-year fixed options in Ireland

Ireland doesn’t have a widespread 30-year fixed mortgage market the way the US does. Most Irish lenders offer fixed terms of 1, 3, 5, 7, or 10 years, with the loan reverting to a standard variable rate or requiring refinancing at the end of the fixed period. Avant Money’s 10–30 year fixed product at 4.75% is among the most competitive long-term options currently available (MoneySherpa). Bank of Ireland offers a 7-year fixed product at 5.00%, giving borrowers a longer lock-in than the typical 5-year product.

Top lender 30-year rates

Long-term fixed mortgage options vary significantly by lender and LTV band.

Selected long-term fixed mortgage rates in Ireland, 2026
Lender Product Rate APRC LTV Band
Avant Money 10–30 Yr Fixed 4.75% — ≤80%
Bank of Ireland 7-Year Fixed 5.00% — ≤60%
AIB 10-Year Fixed 4.20% 4.28% >80%
Avant Money 15-Year Fixed — 2.29% <60%

What this means: borrowers who want long-term rate certainty should approach Avant Money directly or use a mortgage broker who can access the full range of long-term fixed products. The 15-year fixed market is particularly competitive for borrowers with substantial equity.

Will mortgage rates drop to 3% again?

This is the question many Irish homeowners are quietly asking. The short answer is: nobody knows for certain, and anyone promising a definitive forecast should be viewed with scepticism.

Historical context

Irish mortgage rates hit historic lows in 2021, when some variable products dipped below 2% and fixed rates of 1.5–2% were available for well-qualified borrowers. That era was driven by ECB policy in a low-inflation environment. The subsequent surge in inflation forced the ECB to raise rates rapidly, and Irish mortgage rates followed. Average new mortgage rates peaked above 4% before moderating to the current 3.5% level.

Forecast factors

The ECB has begun cutting rates in response to falling inflation, but the pace of cuts remains uncertain. Some analysts expect further reductions through 2026, which could pressure variable mortgage rates lower. However, Irish banks have historically been slow to pass on ECB cuts to standard variable products, and the gap between ECB rates and Irish mortgage rates has widened in recent years. Reports suggest variable rates could moderate toward 3% if ECB cuts continue, but this is not guaranteed (Park Financial).

The catch: even if rates do drop to 3% again, borrowers who fix now will need to break their fixed term to benefit — often at a penalty. The decision to fix or stay variable carries a real cost-benefit trade-off that depends on your personal circumstances and risk tolerance.

The trade-off

Fixing your rate protects you from future increases but locks you out of future cuts. Staying variable keeps you exposed to rate movements in both directions. Neither choice is obviously right in the current environment.

How to get a 4% interest rate on a mortgage?

The question of how to land a sub-4% mortgage rate is one of the most-searched topics among Irish borrowers. Getting there depends on three factors you can influence: your LTV ratio, your choice of lender, and whether you qualify for a green mortgage.

Strategies from ALCOVA

Rate comparison platforms like MoneySherpa track the market continuously and identify patterns across lenders. Their data shows that borrowers with LTV ratios of 60% or below consistently access the best rates — often 0.2–0.5% below the rates offered to borrowers with 80–90% LTV. Building a larger deposit (or having existing equity) is the most reliable path to a lower rate. Additional strategies include improving your credit score before applying, reducing other debt, and using a mortgage broker to access products you might not find directly.

Ireland-specific tips

Green mortgages offer a meaningful discount for energy-efficient homes. AIB and Haven offer green fixed rates starting from 3.00% for A1 to B3 rated properties, while PTSB’s best green rate sits at 2.85% (MortgageLine). If you’re buying or already own an energy-efficient property, prioritising a lender with a strong green mortgage product can bring your rate well under 4%. For standard properties, Avant Money and Bank of Ireland currently offer the most competitive non-green rates across multiple term lengths.

The implication: getting below 4% is achievable for most borrowers with reasonable equity, but it requires being selective about lender and product type. First-time buyers with smaller deposits should focus on lenders who offer competitive rates at higher LTV bands.

Should I get a 2 or 5 year fixed-rate mortgage?

This is where the decision gets personal. Both terms have strong arguments, and the right answer depends on your income stability, your forecast for interest rates, and how much flexibility you want with your mortgage.

2 vs 5 year pros and cons

Upsides

  • 2-year fixed: lower starting rate at some lenders; flexibility to renegotiate quickly if rates drop further
  • 5-year fixed: rate certainty over a longer period; protection if ECB rates rise again; simpler budgeting
  • Both terms allow you to access the current competitive market before rates potentially move higher

Downsides

  • 2-year fixed: expiry coincides with market uncertainty in 2028; potential for higher rates on renewal; need to shop around again
  • 5-year fixed: slightly higher rate than 2-year at most lenders; exit penalties can be significant; locked out of better deals if market improves
  • Both: early repayment limits may restrict your ability to overpay significantly

3, 5, and 10 year options

Beyond 2 and 5 years, some borrowers are considering 3-year fixed products as a middle ground — giving some medium-term certainty without committing to 5 years. Bank of Ireland’s 7-year fixed at 5.00% suits borrowers who want a longer lock-in without going the full 10 years. AIB’s 10-year fixed at 4.20% (for >80% LTV) offers the longest fixed term available from a major bank, with the trade-off of a longer commitment.

The pattern: borrowers prioritising flexibility over certainty should lean toward 2 or 3 years. Those who have locked in a good rate and want to simplify their finances for the medium term will benefit more from 5 or 7 years.

What to watch

Avant Money’s recent rate reductions on 3-, 4- and 5-year fixed products make the 4-year term worth a closer look — it sits between short and medium commitment and has become more competitive since the 2026 adjustments.

“Best Mortgage Rate Ireland Overall: #1. Avant Money Mortgage 10-30 Yr Fixed, 4.75”

— MoneySherpa, Rate Comparator

“Avant Money has a 4-year high-value fixed rate from around 3.20% for borrowers with a loan of €300,000 or more”

— MortgageLine, Mortgage Advisor

Related reading: Federal Reserve interest rates · $20 an hour salary breakdown

Additional sources

moneywhizz.org

While Ireland’s 30-year mortgages average 3.5%, Irish mortgage interest rates entered 2026 with cautiously optimistic forecasts for retreating lending rates.

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Frequently asked questions

Are mortgage rates expected to drop to 5%?

Most current Irish mortgage rates are already below 5%, with competitive variable products in the 3.1–3.9% range and fixed rates starting from around 3.2% for the best-qualified borrowers. The question of further cuts depends on ECB policy, which remains data-dependent.

Will mortgage rates drop to 5% over the next year?

The more relevant question for most borrowers is whether rates will stay below current levels or drop further. Based on current ECB guidance and market pricing, further modest reductions are possible but not guaranteed. Borrowers who can lock in a rate below 4% today have a reasonable hedge against future increases.

Is a 12.2 interest rate good?

A 12.2% interest rate is extremely high by any modern Irish standard and would indicate a subprime or niche product, likely a short-term or specialised lending arrangement. Standard residential mortgage rates in Ireland range from roughly 3% to 6.5% depending on lender and product. Anything above 7% should be questioned closely before signing.

What are current variable mortgage rates in Ireland?

Competitive variable rates start from around 3.18% (Avant Money, 80–90% LTV) to 3.75–3.95% for standard variable products from AIB and Haven. PTSB sits at 4.40–4.50%, and AIB’s standard variable rate is 5.20%. The best variable rate available depends heavily on your LTV ratio and the lender you choose.

What is a good mortgage rate in Ireland?

A good mortgage rate in the current market is below 4% for variable products and below 4.5% for fixed terms of 3 years or longer. The best rates are reserved for borrowers with LTV ratios below 60%, energy-efficient properties qualifying for green mortgages, or loan amounts over €300,000 where Avant Money’s high-value rates apply.

How do AIB mortgage rates compare?

AIB offers a full range of variable and fixed products. Its variable rates are competitive at 3.75% for ≤50% LTV borrowers, and its 10-year fixed rate at 4.20% for >80% LTV is among the better long-term options from a major bank. However, shorter fixed terms (1-year at 5.60%, 4-year at 7.90%) are less competitive than challenger lenders like Avant Money. AIB works well for borrowers who prefer an established bank’s stability and branch access.

What are Bonkers mortgage rates?

Bonkers.ie is a rate aggregator and broker, not a lender — it tracks and compares mortgage products from Irish lenders including AIB, Avant Money, PTSB, Bank of Ireland, and others. Its rate comparison tables pull live data from lenders and its news section tracks rate changes. Borrowers can use Bonkers.ie to compare across lenders and apply through the platform.

Current 30-Year Mortgage Rates

For Irish borrowers navigating the mortgage market in 2026, the landscape offers genuine opportunities alongside real trade-offs. Avant Money leads on both variable and fixed rates, while Bank of Ireland and AIB offer the stability of established institutions with varying degrees of competitiveness across their product ranges. Green mortgages have emerged as a meaningful discount lever for energy-efficient property owners, potentially shaving 0.5–1% off standard rates. The decision between 2, 3, 5, or 10 years of fixed certainty is not one-size-fits-all — it depends on your income outlook, risk tolerance, and whether you believe ECB rates will continue falling.

For borrowers with deposits above 40% equity, the path to a sub-4% mortgage is clear: compare at least three lenders, prioritise green products if your property qualifies, and consider Avant Money’s high-value rate if your loan exceeds €300,000. For those with smaller deposits, the variable rate market remains competitive, with the best deals hovering around 3.2–3.5% — well below the peaks of recent years but still a long way from the 2021 lows that defined a generation of cheap borrowing.