Lenders are expected to make selective adjustments to mortgage rates rather than engaging in major price cuts, according to Martina Hennessy, of digital mortgage broker Doddl.ie.
She said 2025 was a year of rate cuts, with the lowest rate on the market now sitting at 3pc.
The European Central Bank (ECB) held steady at its December meeting, having cut rates eight times since June 2024.
Ms Hennessy said: “ECB policymakers are now delivering a consistent message that the easing cycle is over for now and reviews are unlikely until mid-2026.”
Number of mover mortgages is close to the lowest level in a decade. Photo: Mark Condren
News in 90 Seconds – January 3 2026
She said this meant there was an expectation that this year would bring a year of rate stability, with lenders making selective adjustments to remain competitive rather than engaging in any major downward pricing cycle.
The Doddl.ie boss said one of the more notable developments last year was the launch of a variable product tracked to the 12-month Euribor, with a fixed margin set at drawdown.
There is a huge opportunity to grow switcher market transactions
Introduced by Avant Money, it is by far the lowest variable rate in the market.
“This marks the first meaningful alternative to fixed or standard variable rates since tracker mortgages were withdrawn in 2008,” Ms Hennessy said.
She said a wide disparity remained among rates across the market, which range from 3pc to 6.15pc.
Fixed rates remain lower than variable rates and continue to be the preferred product for new mortgage lending.
Green rates are now the lead product for the three pillar banks, which continue to dominate the mortgage market, she said.
Competition is expected to increase this year, with the entry of Revolut to the mortgage market.
“There is a huge opportunity to grow switcher market transactions, so this could certainly be their focus with a combination of competitive pricing and a clear digital advantage,” Ms Hennessy said.
Martina Hennessy, of Doddl.ie, said the path to home ownership will remain a challenge this year. Photo: PA
Competition is much needed because it creates discipline on rates and also introduces products for segments of the market that the pillar banks often do not serve.
The recent entries of non-bank lenders Nua Money and MoCo were welcome developments, bringing innovation and a more streamlined digital experience than their rivals, Ms Hennessy said.
She added that the housing market remained constrained due to a low level of properties for sale.
Homes put up for sale are selling very quickly.
Being well informed can make all the difference
The number of mover mortgages drawn down in the past year was now close to the lowest level in 10 years, at 9,200, Ms Hennessy said.
Banking data shows that the average first-time buyer and home-mover mortgage values have reached their highest levels on record.
However, affordability is becoming more stretched.
The average residential property sold last year had a price of €426,000 – eight times the average earnings of €53,000.
House prices this year may rise in line with average earnings, at 5pc, Ms Hennessy predicted.
“The path to home ownership in 2026 will remain challenging. However, being well informed can make all the difference,” she added.
Borrowers who understand lender criteria, rate variations and product options, and who know how to optimise their mortgage when moving, renovating or switching, would be best placed to navigate the year ahead, the mortgage expert said.