Current Mortgage Interest Rates Ireland: Compare AIB, PTSB & More

Irish mortgage borrowers face a genuine fork in the road in 2026: lenders offer fixed rates that look attractive by historical standards, while variable options carry upside if the ECB cuts further. The national average sits at 3.5%, yet individual lenders range from 3.20% to 5.55% — and the spread between shortest and longest fixed terms can exceed 1.8 percentage points. The question isn’t just “what’s the rate?” but “which term fits your situation?”

Average New Irish Mortgage Rate: 3.5% (Switcher.ie) ·
AIB 1-Year Fixed: 5.55% ·
EBS 1-Year Fixed: 3.85% ·
AvantMoney Fixed from: 3.20%

What is the current mortgage rate in Ireland?

Irish mortgage rates vary significantly depending on which lender you choose and whether you opt for a fixed or variable product. The national average sits at 3.5% according to Switcher.ie, though individual lenders offer rates ranging from 3.20% to 5.55% depending on your loan-to-value ratio and term length.

Variable rates

Variable rates in Ireland remain higher than their fixed counterparts. AIB’s Standard Variable Rate stands at 5.20% according to their official rates page, while EBS offers a variable rate of 4.15%. These rates fluctuate with ECB policy, meaning borrowers face ongoing uncertainty about future payments.

Fixed rates overview

Fixed rates across major lenders show significant variation across terms and LTV brackets. AIB offers 5-Year Fixed rates from 3.75% (for LTV between 50-80%), with their Green 5-Year product starting at 3.30% for the same LTV bracket. PTSB’s 2-Year Fixed rates start at 4.05% for LTV up to 60%, rising to 4.40% for LTV above 80%.

Will mortgage rates ever drop to 3% again?

The prospect of returning to 3% mortgage rates depends heavily on ECB monetary policy and broader economic conditions. Historical data from the past decade shows rates have cycled through highs and lows, with the current average of 3.5% representing a middle ground rather than a floor.

Historical context

Over the last 10 years, Irish mortgage rates have experienced significant volatility. Rates dipped before the European Central Bank began its aggressive tightening cycle (2020–2021), then climbed to previous highs in 2023–2024. Current rates in 2026 hover around the 3.5% average, with some lenders offering sub-3.5% products for qualified borrowers.

2026 predictions

Analysts suggest modest ECB rate cuts through 2026, though the pace remains uncertain. While further decreases are possible, a return to consistent sub-3% rates appears unlikely without significant economic headwinds.

Is 4.5% a good interest rate?

A 4.5% mortgage rate sits above the current national average of 3.5%, but whether it’s “good” depends on your specific circumstances, loan-to-value ratio, and which lender you’re comparing against.

Compared to averages

The national average of 3.5% serves as your benchmark. At 4.5%, you’re paying approximately 1 percentage point above average, which on a €250,000 mortgage over 25 years translates to roughly €12,000 more in total interest costs.

Fixed vs variable

The lowest fixed rates available start at 3.20% (AvantMoney) while variable rates like AIB’s 5.20% SVR remain significantly higher. If you’re being offered 4.5% on a fixed product, it pays to compare against what’s currently on offer from competitors.

Are mortgage rates expected to drop to 5%?

The question is somewhat moot for most borrowers since the average rate already sits at 3.5% — below the 5% threshold. The more relevant question is whether rates will drop further toward 3% or rise toward the higher variable rates some lenders are still charging.

Short-term outlook

ECB policy suggests gradual easing through 2026, though the pace of cuts remains data-dependent. Market consensus points to modest decreases rather than a dramatic return to pandemic-era lows.

2026 forecasts

Influencing factors include inflation trajectory, ECB policy decisions, and competitive dynamics among Irish lenders. Some economists expect rates to stabilize around current levels rather than fall significantly further.

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

The optimal fixed term depends on your risk tolerance, financial stability, and where you think rates are heading. Here’s a breakdown of what each term offers.

3 vs 5 year pros and cons

• 3-Year Fixed: Lower initial rates in some cases, more frequent renewal decisions, better suited if you expect rates to fall
• 5-Year Fixed: Payment stability for longer, potentially higher rate but certainty, better suited for borrowers who value predictability

Rate examples

AIB’s 5-Year Fixed rates start at 3.75% (LTV 50-80%) with their Green product at 3.30%. PTSB’s 2-Year Fixed starts at 4.05%. The longer term often provides better rate certainty even if the initial rate appears slightly higher than short-term products.

Current rates at a glance

Five major Irish lenders currently serve the mortgage market with distinct product offerings. The comparison below shows fixed rates across the most competitive terms available as of April 2026.

The pattern is clear: AvantMoney leads on fixed rates at 3.20% across all terms, while AIB’s 1-year fixed at 5.55% represents the most expensive option for short-term borrowers. Variable rates from AIB (5.20%) and EBS (4.15%) remain above most fixed alternatives, reinforcing the case for locking in.

Detailed rate specifications

The table below provides exact rates by loan-to-value bracket for the five largest Irish mortgage providers, helping you find where your situation fits in the market.

The LTV bracket has a meaningful impact on the rate you’re offered. AIB’s Green 5-Year product offers the best rates at 3.30% for borrowers with LTV between 50-80%, while those with LTV above 80% typically face rates 0.10-0.15% higher across most lenders.

Fixed vs variable: weighing the trade-offs

For most Irish borrowers today, the fixed-versus-variable calculation tilts toward fixed products. With the national average at 3.5% and many lenders offering fixed rates below that threshold, the certainty premium no longer commands the high price it once did.

For first-time buyers with stable incomes and no immediate plans to move, a 5-year fixed term from a lender like AvantMoney or EBS offers a compelling combination of low rates and payment stability. The risk of locking in rises only if you expect significant ECB rate cuts — and even then, the psychological value of predictable payments often outweighs modest savings from variable products.

Confirmed and unconfirmed

What analysts are saying

“New Irish mortgages continue to sit around the 3.5% mark, though the spread between the cheapest and most expensive products remains wide.”

— Switcher.ie (Irish mortgage comparison platform)

“Fixed rates from 5.55% for a 1-year term reflect the uncertainty banks face in funding costs. Longer terms offer better value for borrowers willing to commit.”

— AIB (mortgage product documentation)

The gap between short-term fixed rates and longer-term products reflects how banks price in their own cost uncertainty. AIB’s 1-year fixed at 5.55% versus their 5-year product at 3.75% represents nearly 1.8 percentage points of difference — a significant premium for short-term flexibility that most borrowers shouldn’t pay unless they have specific reasons to expect rapid rate decreases.

For Irish mortgage borrowers in 2026, the path forward is clearer than it’s been in years. Fixed rates starting at 3.20% offer genuine value for qualified borrowers. The question is no longer whether to fix, but which term and which lender makes sense for your specific situation. Those who wait for perfect clarity will likely miss the window.