Compare fixed rate mortgages in Ireland
Find the best fixed rate mortgages in Ireland using our comparisons. Search by property value, mortgage loan and repayment term for the lowest interest rates.
What is a fixed rate mortgage?
It’s a mortgage where the interest rate is fixed for a set period. This means the amount you pay for your mortgage each month remains the same during the fixed rate term.
Fixed rate terms typically last for between one and ten years, but you may be able to get one for up to 25 years. Most lenders will offer a range of fixed terms so can choose the one that best fits your needs.
Fixed rate mortgages are different to variable rate mortgages where the interest rate fluctuates throughout the mortgage term, meaning that your mortgage payments will also change.
When your fixed rate mortgage d ender will revert the mortgage to a Standard Variable Rate (SVR) unless you choose to switch to a new mortgage deal.
How to choose the best fixed rate mortgage
The first thing you need to decide is how long you want to fix your rate. You’ll usually pay a lower rate on a short fixed term and a higher rate if you want to fix it for longer.
The stability of a long term fixed rate loan is good for budgeting but if interest rates drop you could be stuck on a higher interest rate so it’s a case of weighing up a number of factors like your own financial outlook and how likely interest rates are likely to change.
Choosing a term that will work best for you depends on a few things such as:
- How much stability you need: If your finances are stretched, and you can’t afford for your payments to increase, you may choose to fix for a longer period.
- The flexibility you need: You can’t switch or redeem your mortgage during the fixed term, without paying a hefty penalty. If moving is on the cards, a shorter term may help you avoid paying early redemption charges.
- Your desire to overpay: Fixed rate deals restrict how much you can overpay for free (usually 10% a year) until the term ends. If you’re saving to overpay a lump sum, pick a term that will end when the funds are ready, so you can overpay your mortgage without penalty.
Should you choose the cheapest deal?
Choosing the cheapest mortgage isn’t as simple as picking the term with the lowest rate.
You’ll need to factor in the costs associated with switching mortgages too, as you’ll be switching more often with a short fixed term loan if you move to a different lender.
Bear in mind if rates drop during your fixed period, you won’t be able to switch and take advantage of a cheaper rate while you’re tied in. This will have a bigger impact if you’re fixed into your rate for a long time.
However, depending on your situation, it may still suit you better to fix for longer and have the stability of set payments for an extended period.
How to get a fixed rate deal
Check if you meet the lender’s eligibility criteria first, and how much you can borrow. Use our mortgage search to find the best mortgage rates and either apply directly to the lender or use a broker.
Compare mortgage rates & deals
Find the best first time buyer and home mover mortgage deals in Ireland using our comparison.
Fixed rate mortgage FAQs
Can I switch from a variable rate to a fixed rate mortgage?
Yes. You have no ties with a variable rate mortgage so can switch whenever you like.
You’ll need to apply for the deal you want and carefully consider how long to fix for.
How long can I get a fixed rate mortgage for?
You can typically get a fixed rate mortgage for 1, 2, 3, 4, 5, 7 and 10 years, but some lenders may not offer this full range of terms. One lender is offering fixed rate mortgages for up to 25 years.
What happens when my fixed rate mortgage ends?
When the term comes to an end, you’ll switch over to the lender’s standard variable rate, which is usually expensive.
You’re also free at this time to: overpay as much as you like, redeem your mortgage, or switch lenders, penalty free.
When can I switch from my fixed rate mortgage?
You can switch at any time but if you switch before your fixed term ends you’ll have to pay an early repayment charge (ERC), which could be expensive. Check with your lender before switching.
Once your term has finished, you’ll switch to the lender’s standard variable rate (SVR), and can switch penalty free.
Why are interest rates lower on short fixed term deals?
It’s down to the risk to the lender. They can afford to offer better rates on one or two year deals because there’s less opportunity for the European Central Bank (ECB) rate to increase.
Terms of five or more years make it difficult to predict what rates will do, so they mitigate the risk by inflating rates slightly.
Lenders risk losing money from agreeing to rates that could end up lower than the ECB rate.