The gap between the highest and lowest mortgage rates in the Irish market has widened with the highest rate now double the lowest, new figures show.
Mortgages rates here range from 3.45% to 7.15%.
In the last six weeks, there have been rate decreases from six lenders as the impact of reduced funding costs starts to positively impact pricing. This presents huge potential savings for homeowners who switch lenders - especially as non-bank lenders have not yet reduced rates.
Based on the average new mortgage drawdown of €309,502, the doddl.ie Mortgage Switching Index published today finds some homeowners could be paying a record average €7,812 more annually by sticking with their current lender - an increase from €3,587 a year ago.
This has resulted in a record 42% gap between 25-year monthly repayments of €1,566 on the lowest rate and some householders on €2,217 at the highest end of the scale.
"The expectation that disinflation would lead to rate decreases meant that many mortgage holders chose to hold on to variable rates in Q1 until rates dropped," Martina Hennessy, Managing Director of doddl.ie, said.
"In the last six weeks we have seen rate decreases from six lenders as the impact of reduced funding costs starts to positively impact pricing," she said.
"Non-bank lenders - ICS, Finance Ireland and MoCo - have not yet reduced rates. These lenders are reliant on markets for their financing, so we should see them also pass on reduced costs of funding," she added.
Differences in mortgage rates leave some paying double
The gap between the highest and lowest mortgage rates in the Irish market has widened with the highest rate now double the lowest, new figures show.