Mortgage switching activity in Ireland has risen sharply as homeowners look for more competitive interest rates and reassess their borrowing costs.
New figures from Banking & Payments Federation Ireland (BPFI) show that the value of mortgage switching and re-mortgaging approvals reached €285 million in July 2026, an increase of 81.1% on the same month last year.
The increase comes at a time when mortgage borrowers are facing a changing interest-rate environment, while many households coming to the end of fixed-rate deals are being encouraged to compare their options.
For homeowners looking at their borrowing costs, our housing in Ireland coverage tracks the wider changes affecting mortgages, rents, property prices and affordability.
More homeowners are looking at their mortgage options
Switching a mortgage does not necessarily mean moving house or taking on additional borrowing. In many cases, it means refinancing an existing home loan with another lender to obtain a different interest rate or mortgage product.
The potential benefit depends on the borrower’s circumstances, including the outstanding balance, remaining mortgage term, current interest rate and the rate available from another lender.
The Central Bank of Ireland has previously highlighted that many mortgage holders do not switch even when a cheaper option may be available. Its consumer guidance encourages borrowers to compare the total cost of their existing mortgage with alternative offers rather than simply looking at the headline interest rate.
The July figures suggest that more borrowers are now willing to review those options.
New mortgage rules give borrowers more information
The introduction of the Central Bank’s Consumer Protection Code 2025 has also changed the information lenders must provide to mortgage customers.
The new code took effect on 24 March 2026.
Among the protections applying to mortgage switching, lenders must tell customers about cheaper mortgage options 60 days before they come off a fixed-rate mortgage. They must also advise borrowers whether they may be able to switch to a cheaper mortgage based on the equity in their property.
Importantly, lenders must provide a personalised estimate in euro of the potential saving available through alternative mortgage refinancing options.
That gives borrowers more information before deciding whether to remain with their existing lender, negotiate a different rate or move to another provider.
Irish mortgage rates remain relatively competitive
The latest Central Bank data also show why mortgage switching is attracting attention.
The weighted average interest rate on new Irish mortgage agreements was 3.48% at the end of July 2026. New fixed-rate mortgages averaged 3.44%, while new variable-rate agreements averaged 4.11%.
Fixed-rate borrowing remains particularly dominant. The Central Bank said 94% of the volume of new mortgage agreements in July had fixed interest rates, the highest proportion since records began in December 2014.
For an existing borrower, however, the relevant comparison is not simply the average rate for new mortgages. The key question is whether another available mortgage would reduce the overall cost of their own remaining loan after taking account of fees, incentives, the remaining term and any other conditions.
Switching is not automatically the cheapest option
A lower advertised rate does not necessarily mean that switching will be the right decision for every homeowner.
Borrowers should compare the full cost of the mortgage and check whether there are legal, valuation or other costs associated with moving lender. The Central Bank’s guidance points consumers towards the CCPC mortgage switching calculator when comparing potential savings.
There may also be reasons for staying with an existing lender, particularly if it can offer a competitive rate without the costs and administration involved in refinancing.
Borrowers on tracker mortgages also need to take particular care. The CCPC warns that switching away from a tracker mortgage means losing that tracker rate permanently.
Cashback offers should also be assessed against the longer-term cost of the mortgage rather than treated as an immediate saving.
Fixed-rate borrowers face an important decision
For households approaching the end of a fixed-rate period, the timing of the decision can be particularly important.
Under the consumer protection rules, lenders must provide information about available options before the fixed rate expires, giving borrowers time to compare alternatives rather than automatically moving onto a new rate without considering the wider market.
The surge in switching activity suggests that more homeowners are taking advantage of that opportunity.
With interest rates and mortgage pricing continuing to change, borrowers coming off fixed deals have an opportunity to reassess their options before committing to another rate.
The July figures show that mortgage switching has become a much more active part of Ireland’s housing market, but the best outcome will depend on the individual borrower’s balance, rate, remaining term and circumstances.
For more reporting on mortgages, affordability and the Irish housing market, visit our Ireland housing news section.
