Recent mortgage news tells two stories: borrowing costs are under upward pressure, but competition between lenders has not disappeared.

PTSB has increased its fixed mortgage rates following this year’s ECB increases, while AIB has moved in the opposite direction on a particular four-year fixed product. Meanwhile, the latest Banking & Payments Federation Ireland (BPFI) figures show strong mortgage activity, with switching the fastest-growing customer segment.

For buyers and existing homeowners, the message is clear: comparison matters. A headline about one lender does not tell you what is available across the market.

Which lenders have increased their rates?

PTSB raises fixed mortgage rates

On 22 October, PTSB increased its fixed mortgage rates by between 0.20 and 0.35 percentage points, with a weighted average increase of 0.30 percentage points. The change followed two ECB increases totaling 0.50 percentage points between June and September. The increase applicable to a particular loan depends on its fixed term, size, and loan-to-value ratio.

Importantly:

• Existing fixed-rate customers are unaffected during their agreed fixed period.

• PTSB announced no change to its variable mortgage rates for new or existing customers.

• Customers who had already received an offer letter have until 19 January 2027, or their existing offer expiry date if earlier, to draw down at the previous rates.

If you have a PTSB offer in progress, check the deadline that applies to your own application rather than assuming the January date applies in every case.

Some other lenders had already moved

RTÉ’s 22 October analysis reported that ICS Mortgages and Núa Money had increased rates in recent months. It identified PTSB as the first of the main pillar banks to announce a mortgage rate increase following the June and September ECB rises. The report did not provide a product-by-product breakdown of those other lenders’ changes, so borrowers should check their individual product or notification.

Will more banks follow?

Further increases are possible, but they are not a confirmed outcome.

RTÉ’s analysis highlighted the pressure that higher funding costs could place on lenders and the possibility of further changes at AIB and Bank of Ireland. However, an expectation of increases should not be presented as an announced rate change.

There is also a useful counterpoint: AIB recently cut one of its fixed rates.

On 16 October, AIB announced a reduction of up to 0.35 percentage points on its four-year fixed product for qualifying mortgages of at least €250,000. Available to eligible new and existing customers, the change particularly benefits borrowers whose properties do not qualify for its B3-or-better energy-rated mortgage offering.

This shows why borrowers should avoid assuming every lender and product will move in the same direction.

Almost €4.6 billion drawn down in Q3

The latest BPFI figures show continued momentum across the mortgage market:

Q3 was the strongest quarter for mortgage drawdown volumes since Q4 2022 and for values since Q3 2008. Across the first nine months of 2026, 35,449 mortgages were drawn down, worth almost €11.4 billion.

Drawdowns represent mortgages actually taken out, rather than applications or approvals alone.

First-time buyers remain the largest group

First-time buyers accounted for 8,164 drawdowns in Q3: 57.4% of all mortgages drawn down and the highest third-quarter first-time buyer volume since 2008.

Activity was strong across different property types:

• First-time buyer mortgages on new properties reached 3,244, up 7.5% year-on-year.

• Within that category, self-build drawdowns fell by 5.8% to 666.

• First-time buyer mortgages on second-hand properties reached 4,920, with their value hitting a record of €1.56 billion.

Movers were active too, with mover-purchase drawdown values exceeding €1 billion for the first time since Q2 2008.

Switching is gathering pace

Switching was the fastest-growing segment, with drawdown volumes increasing by 41.7% year-on-year. September switching approvals also rose, by 31.2% in volume and 40.1% in value.

These figures show more homeowners are acting on their options. They do not mean switching is suitable for everyone: the available rate, remaining term, fees, breakage charges and product features all need to be assessed.

What do average mortgage rates tell us?

Central Bank figures published on 14 October showed the weighted average rate on new Irish mortgage agreements was 3.53% in August, compared with a euro-area average of 3.62%.

Within the Irish figures:

• New fixed-rate mortgages averaged 3.49%.

• New variable-rate agreements averaged 4.16%.

• Fixed rates accounted for 94% of new mortgage volume.

These are historical averages, not rates every borrower can obtain. They also predate the September ECB increase and October lender announcements, so they should not be treated as a live guide to today’s offers.

A separate development for savers

Bank of Ireland’s 22 October announcement concerned savings, not mortgage rates.

It increased rates on its six-, 12- and 18-month Advantage Fixed Term Deposit accounts by between 0.25 and 0.50 percentage points. Existing fixed-term deposits retain their agreed rate until maturity. The accounts allow access to up to 25% of deposited funds during the term.

For buyers saving towards a purchase, the practical consideration is balancing returns with access: deposit funds, legal fees and other purchase costs may be needed before a fixed savings term ends.

What should borrowers do now?

First-time buyers and movers

Review your borrowing capacity, repayment budget and available products before committing to a purchase. If you already have an offer, confirm its expiry date, any rate-protection deadline and outstanding drawdown conditions.

A rate advertised today should not be assumed to remain available indefinitely.

Existing homeowners

If your fixed rate is approaching its end, begin reviewing your options early. If you are still within a fixed period, ask about any breakage charge before deciding whether switching is worthwhile.

For tracker borrowers, leaving a tracker is a significant decision: compare the long-term implications rather than focusing only on the next repayment.

Property investors

Do not assume a residential mortgage announcement applies to buy-to-let borrowing. Check the relevant investment product and consider how repayments fit with rental income, property costs and periods without a tenant.

Get a clear view of your options

At Irish Mortgage Corporation, we look beyond individual rate announcements to help you understand what is suitable for your circumstances.

Whether you are buying your first home, moving, reviewing an existing mortgage or considering an investment property, our team can explain your options and guide you through the next steps.

Contact me for a free, no-obligation chat.

Rate announcements and market figures reflect the sources available for this update. Product availability, eligibility and drawdown deadlines should be confirmed before proceeding.