New mortgage rates fall for the third month in a row

Meanwhile Pepper, the largest servicer of ­mortgages on behalf of vulture funds, has promised more rate reduction for 'mortgage prisoners' trapped with it.
Overall new mortgage rates fell to 3.72pc in April, down from 3.77pc in March, Central Bank of Ireland statistics show. Mortgage rates are now at their lowest level in just over two years.
The Eurozone average rate increased marginally to 3.34pc. However, rates varied hugely across the currency bloc. They are as low as 1.69pc in Malta to as high as 4.40pc in Latvia.
Ireland had the fifth highest rates in the Eurozone. This is a vast improvement on a few years ago when mortgage rates in this country were among the highest in the area. Also falling, but at a faster rate, are the interest rates banks are paying savers.
The Central Bank of Ireland figures show that the average interest rate on household deposits with a fixed maturity fell from 2.26pc to 1.95pc. This reflects the fact that the European Central Bank cut rates for the eighth time last week putting pressure on savings and deposit rates.
One more rate cut is expected by the money markets, possibly in September.
Daragh Cassidy, head of communications at mortgage broker Bonkers.ie, said the gap between Irish mortgage rates and European ones was narrowing fast.
'Although we now have the fourth highest rates in the Eurozone, the 0.38 percentage point gap between the average Eurozone rate and the average Irish rate is actually the smallest it's been in 10 months.'
He said the ECB cut rates again this month, and is likely to cut rates once more before the end of the year. This should lead to mortgage rates in Ireland continuing to creep a bit lower over the coming months.
The lowest rate in the market is currently just under 3pc, which is with Avant Money's new tracker-like variable product which tracks the Euribor, Mr Cassidy said.
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AIB and PTSB both offer fixed rates as low as 3pc, but homeowners much have a Building Energy Rating of B3 or better.
Mr Cassidy said: 'We could see a fixed rate slightly under 3pc on offer by the end of the year for mortgage customers with big deposits. However, the sub-2pc rates we saw as recently as 2022 don't look like returning any time soon.'
He said this is particularly relevant for some of those coming off fixed rates in the next year or so.
Despite the overall decline in rates, some may still be facing higher repayments than those they have been used to when they come to re-fix, he added.
And asked if it has plans to pass on the latest ECB rate cut to its customers, Pepper Advantage said it expects to pass this on. 'Pepper Advantage recently cut rates in April and anticipates further reductions for customers in the near future. Pepper Advantage continues to monitor ECB interest rate changes with a view to passing them on to customers.'
People whose mortgages are serviced by the likes of Pepper Advantage on behalf of vulture funds are known as 'mortgage prisoners'. This is because they are only offered very high variable rates and are unable to fix.
They are unable to move their mortgage to another lender as many of them are either in arrears or fell behind on their payments in the past.

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