Compare variable rate mortgages
A variable rate mortgage offers you the flexibility to overpay or redeem your mortgage at any time without penalty. Compare variable rate mortgages from Ireland’s best lenders.
LatestMortgage interest rates
The European Central Bank (ECB) sets interest rates for the euro area every six weeks.
The refinance rate was cut by 0.25 base points to 2.15% in June 2025.
When the ECB rate changes, your lender can increase or reduce your mortgage rate if you’re on a variable rate, but is under no obligation to do so. Those on tracker mortgages may feel the impact of changes immediately.
If you have a fixed rate mortgage, the interest rate will stay the same until your deal ends.
What is a variable rate mortgage?
It’s a type of home loan where the interest rate changes over time, meaning your monthly repayments can go up or down. This differs to a fixed-rate mortgage, where the interest rate remains the same for a set period.
Its two main features are:
In Ireland, variable rate mortgages are currently available as:
- Standard variable rate mortgages (SVR): This is the basic interest rate set by a mortgage lender. It’s the rate you’ll automatically move to once your fixed-rate or tracker deal ends. Lenders can change their SVR at any time, though they often move in line with the ECB base rate. They are typically higher than fixed rates.
- Tracker mortgages: This type of mortgage tracks a benchmark interest rate, plus a set percentage (known as margin). For example, if the base rate is 2% and the margin is 0.5% your tracker mortgage interest rate would be 2.5%. Your monthly repayments alter when the base rate changes.
The pros and cons of variable rate mortgages
Weigh up the details and pros and cons of variable rate mortgages and fixed rate deals and compare the best deals across both. A variable rate doesn’t guarantee set payments like a fixed rate mortgage, but it does offer other advantages.
Pros
Cons
Fixed or variable rate mortgages - which is best?
A fixed rate deal can offer peace of mind for the duration of the term and certainty over monthly payments, but variable-rate mortgages are popular when interest rates are lower or are predicted to go down.
If flexibility is more important to you than stability, a variable rate mortgage is worth considering. You can always switch to a fixed rate deal in the future if you want to fix the interest rate and payments.
Whatever you decide, remember to factor in fees for switching your mortgage, as well as the ability to afford potential interest rate increases.
How to choose a variable rate mortgage
Once you’ve found out how much you can borrow use our mortgage search to compare variable rate deals.
Here are a few things to consider:
- Type of variable rate
- Interest rates
- Mortgage features
- Terms and conditions
1. Choose a type of variable rate
Although not all are available in Ireland, you may see these advertised from time to time:
- Standard variable rate (SVR): The lender’s variable rate that you usually default to at the end of a fixed or discounted period.
- Tracker variable rate A mortgage product that’s tied to a benchmark interest rate. Your monthly repayment payments will change when the base rate changes.
- Discounted variable rate: A rate that’s lower than the standard variable rate (SVR) and runs for a set term, usually a year. At the end of the discounted period, the rate will revert to the SVR.
- Capped variable rates: Any rate increases are capped during the term, so even if the European Central Bank (ECB) rate goes up, the impact is limited.
2. Look for low interest rates
The lower the rate, the less you’ll pay in interest and the lower your monthly mortgage repayments. Pick a deal that offers a low indicative APRC (Annual Percentage Rate of Charge). The APRC shows you the total cost of a mortgage, including fees, over the whole term.
Unlike a fixed rate mortgage, a variable rate mortgage may change if the ECB rate changes.
3. Compare mortgage features
Some lenders may offer additional features like cashback or discounted rates for homeowners with a good energy rating (BER).
Cashback mortgages work by releasing funds from the money you borrow. The cash is usually paid into your bank account after you draw down your mortgage within two months of completion, although some banks may provide the money upfront.
4. Read the terms carefully
Read the terms of any mortgage you’re interested in carefully and seek advice if there is anything you’re unsure about.
For instance, check any arrangement or product fees. If there’s a discount period, check how long this will last, and if you’re switching your mortgage, factor in solicitor and valuation fees.
Talk to the lender or get advice from a mortgage broker if you need further clarification.
Popular questions
When can I switch to another mortgage deal?
With a variable rate mortgage you’re free to switch whenever you like.
You’ll need to meet the lending criteria to switch, and if you switch lenders too, you’ll have to go through the mortgage application process in full.
When will my variable interest rate change?
Lenders usually increase or lower their rates in line with the ECB rate but not always. They may choose to change their standard variable rate whenever they like.
What is a tracker mortgage?
A tracker is a type of variable rate mortgage that tracks the European Central Bank (ECB) or Euribor rate, at a set percentage above or below. This means that the rate automatically changes when the ECB rate changes.
They’re not widely available as new mortgage deals, but if you already have one, some lenders offer a follow-on tracker mortgage if you’re moving home.
For example, if you have a Bank of Ireland tracker mortgage, they offer a Tracker for Movers, that will continue to track the ECB rate.
If you’re considering switching your tracker mortgage:
- talk to an approved mortgage advisor and discuss all your options
- compare your current rate with the ECB rate
- compare mortgage rates online to see how much you’ll save
- remember once you leave your tracker, you can’t go back
What is the Indicative APRC (Annual Percentage Rate of Charge)?
Mortgage lenders are required to quote the APRC in their advertising to ensure consumers have a clear, comparable figure for the total cost of borrowing.
It shows the total cost of a mortgage, including fees, over the entire loan period, so it helps you compare the overall cost of your mortgage (if you don’t switch during the term).
For example, a 2 year fixed rate mortgage with an introductory rate of 1.99% and a booking fee of €999 that reverts to the lender’s standard variable rate (SVR) of 4.19% for the next 23 years ends up with an APRC of 3.7%. The rate is indicative because it’s based on a typical mortgage of €100,000 over a 20 year term.
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