Fixed mortgage rates in Ireland have fallen below variable rates for the first time in years, with the lowest fixed deal at 3.0% from PTSB beating the best variable alternative at 3.32% from Avant Money. This reversal puts Ireland alongside a broader shift across European mortgage markets, where borrowers who locked in variable deals just months ago now face a dilemma: stick with the flexibility that once made sense or switch to certainty at a lower cost.

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Current Irish fixed rates start at 3.0% (PTSB 4-year) · Average new mortgage rate: 3.51% (Central Bank of Ireland, Feb 2026) · Variable rates range from 3.32% to 5.20% (AIB) across top lenders

Lowest Fixed Rate
3.0%
PTSB 4-year fixed, LTV ≤60%
Source: Fairstone mortgage comparison
Lowest Variable Rate
3.32%
Avant Money Flex Mortgage, LTV ≤80%
Source: Money Guide Ireland
Average New Mortgage
3.51%
Weighted average, end-February 2026
Source: Central Bank of Ireland
Fixed vs Variable Gap
0.32%
Fixed now cheaper than variable (PTSB vs Avant Money)
Source: Fairstone rate analysis
Key Facts: Ireland Mortgage Rates 2026
Lender Product Rate APRC Source
PTSB 4-Year Fixed (LTV ≤60%) 3.0% — Fairstone
Avant Money Flex Variable (LTV ≤80%) 3.32% 3.39% PSF
AIB Standard Variable Rate 5.20% 5.34% AIB direct
AIB 1-Year Fixed (LTV ≤50%) 3.30% — AIB direct
Bank of Ireland 4-Year Fixed (90% LTV, BER A3+) 3.1% — Money Guide Ireland
Bank of Ireland 3-Year Fixed (Eco-Digital) 3.75% 4.10% PSF
Haven Green 4-Year Fixed (BER A/B) 3.20% 3.88% PSF
Haven Standard Variable 4.15% — PSF
PTSB Standard Variable 4.70% 4.84% PSF
ICS Variable Rate 4.1% — Irish Times

What are current mortgage rates in Ireland?

Fixed vs variable rates

Fixed mortgage rates in Ireland are now lower than most variable alternatives—a complete reversal of the historical pattern where variable deals typically undercut fixed terms. As of April 2026, the cheapest fixed rate stands at 3.0% from PTSB for borrowers with at least 40% equity, while the best variable option at 3.32% from Avant Money applies to those with up to 20% deposits. This 0.32 percentage point gap means a borrower with a €250,000 mortgage over 25 years could save roughly €45 per month by choosing the fixed option, depending on their lender and eligibility.

The Central Bank of Ireland’s weighted average for new mortgage agreements reached 3.51% at the end of February 2026, providing an official benchmark against which individual lender deals can be measured. This average sits comfortably below the 5.20% standard variable rate that AIB charges, illustrating the substantial penalty borrowers pay for staying on legacy variable contracts.

Bank-specific rates (AIB, PTSB, Avant Money, Haven, BOI)

Bank-by-Bank Rate Comparison (March–March 2026)
Bank Lowest Fixed Condition Lowest Variable Source
PTSB 3.0% (4-year) LTV ≤60% 4.70% PSF
Avant Money 3.20% (4-year) LTV 80–90% 3.32% PSF
AIB 3.30% (1-year) LTV ≤50% 5.20% AIB
Bank of Ireland 3.1% (4-year) 90% LTV, BER A3+ — Money Guide Ireland
Haven 3.20% (4-year) BER A or B 4.15% PSF

The pattern that emerges is clear: borrowers with better-rated properties (lower LTV, higher BER energy rating) access the cheapest fixed deals, while those with older properties or smaller deposits face higher rates or are pushed toward variable products. Green mortgages from Haven, BOI, and PTSB specifically reward energy-efficient homes with rates up to 0.2% below standard fixed alternatives for properties rated A or B.

Before choosing a lender, verify whether your property’s BER certificate qualifies you for green mortgage discounts—the saving could tip the balance between two competing offers.

Will mortgage rates ever be 3% again?

Historical trends

Irish mortgage rates hit historic lows in 2021, when some lenders offered sub-2% fixed deals amid the pandemic-era ECB stimulus. The subsequent rate hiking cycle brought Irish mortgages from those floor levels to the current mid-3% range for best-buy fixed products. The ECB’s refinance rate, which influences variable mortgage costs across the eurozone, stood at 2.15% as of June 2025 following a series of cuts that began in mid-2024.

Over 81% of new mortgages in Ireland were fixed-rate products by June 2025, up from historical norms of around 60%, according to Central Bank data. This shift reflects both lender pricing strategies and borrower preferences for payment certainty in an uncertain rate environment.

Expert predictions

Forecasts for Irish mortgage rates reaching sub-3% levels again remain guarded. The European Central Bank has signalled a data-dependent approach to further rate cuts, with the pace of monetary easing dependent on inflation outcomes across the eurozone. Current market pricing suggests rates could stabilise in the 3–4% band for best-buy fixed products through 2026, but aggressive further declines would likely require sustained eurozone disinflation or an economic downturn that prompts more aggressive ECB action.

“Fixed rates in Ireland are now lower than variable, but is fixing right for you?”

— Fairstone mortgage adviser, Should You Fix Your Mortgage Rate in 2026?

“Someone about to roll on to a variable rate of 4.4 per cent but who actively locks in a 3.1 per cent green rate instead will save over €10,000.”

— Cormac Corbett, Irish Times, Switching could save you over €10,000

The implication is that borrowers currently on variable rates above 4% face the most urgent decision: switching to a fixed deal at 3.0–3.2% could deliver savings of hundreds of euros annually, but those savings disappear if rates fall further and borrowers are locked into multi-year terms. The timing of any switch therefore requires weighing the certainty of today’s fixed rate against the possibility of accessing even lower rates later.

Is 4% a good mortgage rate?

Compared to historical averages

A 4% mortgage rate sits above the current average of 3.51% for new Irish mortgages but remains well below the peaks seen during the 2008 financial crisis or the rate hiking cycles of the early 2000s. For context, AIB’s standard variable rate of 5.20% represents a full 1.69 percentage points above the best fixed deals available, meaning roughly €230 more per month on a €250,000 mortgage over 25 years compared to the cheapest PTSB fixed alternative.

Current benchmarks

The cheapest fixed rates now cluster around 3.0–3.2% for eligible borrowers, while the best variable rates start at 3.32%. This means 4% functions as a mid-market threshold: above it, borrowers are likely paying a premium for their lender’s standard pricing; below it, they are accessing competitive fixed or discounted variable products. New Central Bank rules from 2026 require lenders to notify existing borrowers of the best available rates and quantify the potential savings from switching—putting pressure on banks to retain customers rather than relying on inertia.

Borrowers on standard variable rates above 4.5% should receive annual notifications from their lender detailing cheaper alternatives and estimated savings under the new Central Bank requirements.

Will mortgage rates go down to 4%?

Short-term forecasts

The Irish mortgage market has already dipped below the 4% threshold for best-buy fixed products, with PTSB’s 3.0% four-year fixed representing the lowest rates have been for first-time buyers in years. However, “will mortgage rates go down to 4%” frames the question too broadly: for many borrowers—particularly those with higher LTV ratios or properties with lower BER ratings—rates above 4% remain the realistic best available option. The average new mortgage rate of 3.51% masks considerable variation across borrower profiles and lender eligibility criteria.

Next 5 years outlook

Longer-term rate projections depend heavily on ECB monetary policy, eurozone inflation trajectory, and domestic mortgage market competition. The ECB’s June 2025 refinance rate of 2.15% provides a floor from which further cuts could eventually feed through to variable mortgage pricing, but fixed rates—set by lenders’ own funding costs and competitive positioning—may not fall as far or as fast. Analysts at Switcher.ie note that Irish mortgage rates historically track ECB moves with a lag of 6–18 months, meaning any future ECB cuts would gradually reduce variable rate costs but may already be priced into current fixed offerings.

The pattern suggests borrowers who lock in fixed rates now at 3.0–3.5% are making a calculated bet that rates will not fall dramatically below those levels within their fix term. Those who prefer variable flexibility are accepting a premium today in exchange for the ability to capitalise on future rate declines—which, given the current ECB trajectory, may be a reasonable trade-off for borrowers confident in their ability to absorb potential increases.

Variable rate borrowers should budget for potential rate increases: the gap between the best variable (3.32%) and the highest standard variable (5.20%) is 1.88 percentage points, representing significant payment shock if your lender reprices upward.

How long should I fix my mortgage for? 2, 3, 5 or 10 years

Pros and cons of fix terms

Advantages of fixing

  • Payment certainty for the full term—no variable rate surprises
  • Current fixed rates (3.0–3.5%) beat most variable alternatives
  • Green fixed rates offer additional discounts for energy-efficient properties
  • Cashback incentives (2–5% of loan amount) available from PTSB, Haven, BOI
  • Protection against ECB rate increases during the fix period
Disadvantages of fixing For those considering their options, understanding current mortgage rates in Ireland is crucial, and you can find detailed information at $Five Guys Ireland Preise.

  • Locked in: early repayment charges apply if you switch or sell
  • If rates fall further, you cannot access lower variable rates
  • Break costs can be substantial (typically 1–3% of outstanding loan)
  • Longer fixes (5+ years) may carry higher rates than 2–3 year terms
  • Flexibility lost compared to variable products with offset features

Current rate options by term length

Typical 1–2 year fixed rates currently sit in the low-to-mid 3% range for eligible borrowers, while 3–5 year fixed products span from 3.0% to 4.3% depending on lender, LTV, and BER rating. The cheapest multi-year fixed deals come with eligibility restrictions: PTSB’s 3.0% requires LTV at or below 60%, while Haven’s green rate at 3.20% demands a BER of A or B.

The choice between 3-year and 5-year fixed terms involves a trade-off between rate certainty and flexibility. A 3-year fixed at 3.0–3.65% commits you for a shorter period but leaves you exposed to repricing at renewal—potentially into a higher rate environment. A 5-year fixed provides longer certainty but typically carries a higher rate and larger break costs if your circumstances change. Many mortgage advisers recommend the 3-year term as a balance between competitive pricing and manageable lock-in risk, particularly for borrowers who anticipate life changes (career moves, family expansion, property sale) within the medium term.

If your fixed rate is ending soon, start comparing offers at least 3 months before renewal. New Central Bank rules require lenders to notify you of their best rates, but you still need to actively shop around to access the cheapest deals.
Additional sources

ptsb.ie, mortgageline.ie, mortgages.ie

As fixed rates from AIB, PTSB and EBS stabilize, 2026 Irish mortgage forecasts indicate average new lending rates retreating from peaks on an optimistic trajectory.

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Frequently Asked Questions

What is a variable mortgage rate?

A variable mortgage rate fluctuates with market conditions, typically tied to the European Central Bank’s benchmark rates or the Euribor index. In Ireland, variable rates reset annually for most products, meaning your monthly payment can increase or decrease each year. The advantage is flexibility and the potential to benefit from rate cuts; the disadvantage is payment uncertainty and the risk of increases.

How do green mortgage rates work?

Green mortgage rates reward borrowers with energy-efficient properties. Lenders including Haven, Bank of Ireland, and PTSB offer rates 0.1–0.2% below their standard fixed products for homes with a Building Energy Rating (BER) of A or B. To access green rates, you need a BER certificate for your property—typically obtained during purchase or through a voluntary assessment. The discount applies for the duration of the fixed term, providing ongoing savings compared to standard rates.

What factors affect current home interest rates?

Several factors influence the mortgage rates available to Irish borrowers: the European Central Bank’s monetary policy (which affects variable rate pricing), individual lender funding costs and competitive strategy, your loan-to-value ratio (lower LTV = cheaper rates), your property’s BER rating (energy-efficient homes qualify for green discounts), your borrower profile (first-time buyers, switchers, or existing customers), and the fixed term length chosen.

Can rates drop below 3% soon?

Current market conditions make sub-3% mortgage rates unlikely in the near term for most borrowers. The cheapest fixed deal available as of April 2026 sits at 3.0% from PTSB, while the best variable alternative starts at 3.32%. Further ECB rate cuts could eventually feed through to variable pricing, and increased competition among Irish lenders might drive fixed rates lower, but a return to the sub-2% pandemic-era levels would require a significant deterioration in the eurozone economic outlook.

Is now a good time to fix my mortgage?

For borrowers currently on variable rates above 4%, switching to a fixed rate of 3.0–3.5% represents an immediate and substantial saving—the Irish Times reported potential savings of over €10,000 for borrowers switching from a 4.4% variable rate to a 3.1% green fixed product. However, the decision depends on your personal circumstances: if you anticipate needing to move or sell within the fix term, break costs could outweigh the rate savings. Borrowers already on competitive variable rates (below 3.5%) have less urgency but should still compare available fixed alternatives before their next renewal.

What are AIB’s latest mortgage rates?

AIB’s standard variable rate stands at 5.20% with an APRC of 5.34% as of April 2026—the highest among major Irish lenders. However, AIB offers competitive fixed alternatives: their 1-year fixed rate is 3.30% for borrowers with LTV at or below 50%. Existing AIB customers on the standard variable rate should receive notification of cheaper alternatives under new Central Bank requirements, but should also compare rates from other lenders to ensure they access the best available deal.

How do I compare PTSB and Avant Money mortgage rates?

To compare PTSB and Avant Money effectively, consider three factors: the rate type (fixed vs variable), your eligibility criteria (LTV, BER, borrower profile), and the total cost including fees and incentives. PTSB currently offers the lowest fixed rate at 3.0% for borrowers with LTV up to 60%, while Avant Money’s Flex Variable at 3.32% suits those with slightly higher deposits (up to 20% or LTV ≤80%). Both offer cashback incentives—PTSB provides 2% cashback on some fixed products, while Avant Money’s flex mortgage allows annual rate reviews. Use comparison tools from Money Guide Ireland, Switcher.ie, or PSF to cross-check current offers before applying.

Timeline: Key Rate Milestones

Understanding how Irish mortgage rates have evolved helps contextualise current offers and future expectations.

Ireland Mortgage Rate Timeline 2025–2026
Date Event Source
June 2025 ECB refinance rate cut to 2.15% Switcher.ie
June 2025 81% of new mortgages are fixed-rate products Switcher.ie / Central Bank
February 2026 Irish mortgage rates update; typical 3–5 year fixed in mid-3% to mid-4% range Educ Mortgages
End February 2026 Weighted average new mortgage rate reaches 3.51% Central Bank of Ireland
Late February 2026 Comprehensive lender rate comparison; Avant Money flex variable at 3.32% PSF
April 3, 2026 Irish Times analysis shows switching from 4.4% to 3.1% saves over €10,000 Irish Times
April 2026 PTSB 4-year fixed at 3.0% confirmed as lowest fixed offer Fairstone, Doddl.ie

The pattern reveals a consistent downward trend in Irish mortgage rates through 2025–2026, driven by ECB easing and intensified competition among lenders. The trajectory suggests borrowers who have not reviewed their mortgage in 12 months are likely overpaying relative to current market offers.

Switching Incentives and Cashback Offers

Several lenders sweeten switching deals with cashback payments that can offset the cost of break fees or legal expenses:

  • PTSB 3-Year Fixed: 2% cashback (worth €5,000 on a €250,000 mortgage) with APRC of 3.93%
  • Haven 4-Year Fixed: €5,000 cashback for switchers, APRC 3.88%
  • Bank of Ireland 3-Year Fixed (Eco-Digital): 3% cashback, APRC 4.10%

The implication for borrowers considering a switch is that cashback incentives can significantly reduce the net cost of exiting an existing mortgage, particularly for those with substantial remaining balances. However, always calculate the true cost including any exit fees, legal costs, and the new rate versus your current one before proceeding.

Bottom line: Fixed mortgage rates have fallen below variable rates in Ireland, with the cheapest deal at 3.0% from PTSB. Borrowers on variable rates above 4% who switch now could save over €10,000 over the life of a typical mortgage—but the right choice depends on your property’s eligibility criteria, your tolerance for rate lock-in, and whether life changes might force an early exit.

Related Reading

Sources in this article: Central Bank of Ireland, AIB, Fairstone, PSF mortgage update, Money Guide Ireland, Switcher.ie, Irish Times, Doddl.ie, Educ Mortgages