Dáil Éireann Debate, Tuesday - 10 February 2026
178. Deputy Thomas Gould asked the Tánaiste and Minister for Finance whether he plans to reduce interest rates being charged to mortgage holders who mortgages were sold to non-bank lenders after the financial crash. [10023/26]
View answerThe Government is aware of the impact that increased mortgage interest rates have had on borrowers over recent years.
However, it is important to note that the determination of retail lending rates is a commercial matter for individual lenders. The Government does not set the mortgage interest rates charged by regulated entities.
Central Bank of Ireland data indicates that mortgage interest rates have declined over the past year.
At the end of September, the weighted average interest rate on all outstanding mortgages held by banks was 3.44%, down from 3.60% a year earlier.
For the non-bank sector, the weighted average interest rate on outstanding mortgages was 3.78%, down from 4.39% a year earlier.
For those entities in the non-bank sector that do not engage in new lending, the average interest rate on outstanding mortgages at the end of September 2025 was 3.91%, down from 5.32% a year earlier.
In relation to new mortgages, the weighted average interest rate on all new mortgage agreements at the end of November was 3.53%, down from 3.97% a year earlier.
These figures put Irish interest rates on new mortgages at their lowest level since February 2023.
The Government, the Central Bank and the industry have taken steps to assist borrowers in response to higher mortgage interest rates.
Budget 2026 maintained the mortgage interest tax credit at the current level for a further year and at a reduced level of relief for the subsequent year.
The Central Bank of Ireland's regulatory framework also offers strong protection for consumers and requires that all regulated entities, including banks, retail credit firms and credit servicing firms, are transparent and fair in all their dealings with borrowers. An enhanced Consumer Protection Code will come into effect next month.
The industry has adopted a consistent set of initial eligibility criteria to facilitate switching mortgages from a non-bank to a bank. It has also introduced a bespoke website, entitled 'It's in Your Interest', to further encourage and assist the mortgage switching process.
