On June 6th, the ECB cut its interest rates by 0.25%. This move was widely anticipated, with experts forecasting a series of three such cuts throughout 2024. Irish mortgage holders might well be asking: Will my mortgage interest rate decrease because of this announcement?

In this article, we will explore the role of the ECB and it’s impact on banking and lending in Ireland.

What is the ECB and what does it do?

The ECB (European Central Bank) is the central bank for euro-using EU countries. It manages inflation, oversees the EU banking sector, issues euro banknotes, facilitates electronic payments and transfers, and forecasts and manages financial risk.

What are the ECB interest rates and what are they for?

The ECB has three interest rates:

  • Main Refinancing Operations (MRO) Rate: This is the rate at which banks borrow from the ECB, influencing the rates banks charge consumers.
  • Marginal Lending Facility Rate: This is the rate for overnight lending to banks.
  • Deposit Rate: This is the rate banks earn for deposits with the ECB.

Last week, the MRO rate was reduced from 4.5% to 4.25% after ten consecutive increases since July 2022 to combat eurozone inflation. More cuts are expected as inflation continues to fall however commentary from the ECB on further cuts has been guarded.

Will mortgage interest rates in Ireland automatically reduce as a result of ECB cuts?

The answer to this question is yes and no.

The impact of ECB rate cuts on Irish mortgages depends on the type of mortgage:

  • Tracker Mortgages: These will decrease in line with ECB cuts. Around 180,000 Irish tracker mortgage customers will also see a further once off reduction of 0.35% from September 2024 due to a technical change by the ECB. This will be welcome news for those on tracker mortgages who have borne the brunt of ECB rate hikes over the past year and a half.
  • Fixed-Rate and Variable Rate Mortgages: These will not automatically decrease. Despite coming under political pressure to reduce rates, Irish banks are arguing that they did not pass on the full ECB rate increases to their customers. In a statement posted after the ECB announcement, the Banking and Payments Federation of Ireland said that interest rates and pricing of lending is a commercial matter for each bank or non-bank lender, signaling that there will likely be no immediate reaction from Irish lenders. That said, two non-bank lenders, ICS and Finance Ireland, announced reductions to their owner occupier variable rate options; however their rates were and still remain well above those of other lenders. All of those on fixed-rate mortgages will have to wait until their terms ends before any change in rate will apply. This impacts about 470,000 households. For fixed-rate customers who locked in their mortgage at lows of between 2% and 2.5% before the ECB increases began, and who are due to refinance in the near future, they will see their mortgage payments increase regardless of the latest cut.

What are the best interest rates currently available from Irish Lenders?

Here are the best interest rates currently available from Irish lenders:

Green Mortgage Rates (for A and B BER-rated properties):

Lender 3yr Rate 4yr Rate 5yr Rate
Haven 3.45%
AIB 3.55%
EBS 3.55%
PTSB 3.60% on loans >=€250k
3.70% on loans <€250k
4.05% on loans >=€250k
4.25% on loans <€250k
BOI 4.40% (A rated)
4.45% (B rated)
3.60% (A rated)
3.65% (B rated)
on loans >=€250k only
3.90% (A rated)
3.95 (B rated)
on loans >=€250k4.40% (A rated)
4.45% (B rated)
on loans <€250k

Rates above are calculated on a Loan to Value of >70-80% (Rates correct as of 11.05.24)


Non-Green Fixed Mortgage Rates:

Lender 3yr Rate 4yr Rate 5yr Rate
Avant Money 3.70% 3.60% 3.8%
PTSB 3.70% + 2% cashback
on loans >=€250k3.80% + 2% cashback on loans <€250k
3.80% 4.15% + 2% cashback on loans >= €250k

4.75% + 2% cashback
 on loans <€250k

BOI 4.40% (A rated)
4.45% (B rated)
4.50% (C rated)Further rates available to G rated properties
3.60% (A rated)
3.65% (B rated)
3.70% (C rated)
Available on loans >=€250k only
Further rates available to G rated properties
3.90% (A rated)
3.95% (B rated)
4.00% (c rated)
on loans >=€250k only 

4.40% (A rated)
4.45% (B rated)
4.50% (C rated)
on loans <€250k
Further rates available to G rated properties

AIB 4.70% 4.75% 4.8%
Haven 4.75% 4.85% + 5% cashback on loans >=€250k
EBS 5.0% 5.10%
ICS 5.45% 5.2%
Finance Ireland 5.8% 5.6%
MoCo 4.6% 4.5%

Rates above are calculated on a Loan to Value of >70-80% (Rates correct as of 11.05.24)

For longer-term loans of 10+ years, Avant Money offers a competitive 3.80% rate for 10-year terms and up to 30 years.

Variable Rates:

  • The best variable rate for an LTV of >70-80% is 4.15% (AIB, EBS, BOI)
  • For LTVs <50%, it can be as low as 3.75% (AIB and EBS)

Choosing the right mortgage product depends on your unique circumstances and long-term plans and objectives. Consulting a qualified mortgage broker can help you understand all available options and benefits.


While it is difficult to forecast what interest rates will do in the short term, it is expected that rates might decrease to pre rate hike levels by around 2026. Lenders are legally prohibited from signaling any future pricing change either privately or publicly.

With so many products on offer from Irish lenders, speaking with a mortgage broker is advisable to navigate the options and find the best fit for your situation.