Irish mortgage switching jumps 42%—
is refinancing worth it?

01 / THE FIGURES

Switching was the—
fastest-growing segment.

BPFI recorded 2,214 re-mortgage and switching drawdowns during the third quarter of 2026, with a combined value of €694 million. Both volume and value reached their highest levels since the fourth quarter of 2022.

Switching was the fastest-growing customer segment: drawdown volume increased by 41.7% year on year and value by 50.9%. September switching approvals rose by 31.2% in volume and 40.1% in value.

The wider mortgage market was also active. A total of 14,217 mortgages worth €4.598 billion were drawn down in Q3 2026. That represented annual growth of 13.1% in volume and 15.7% in value. During the first nine months of the year, 35,449 mortgages worth almost €11.4 billion were drawn down.

BPFI groups re-mortgaging and switching together, so not every transaction necessarily represents a borrower moving to a different lender. BPFI is the representative body for Ireland’s banking, payments and fintech sector rather than a state statistical authority.

02 / MORTGAGE RATES

The rate environment—
offers context.

Central Bank of Ireland statistics show that the weighted average rate on new Irish mortgage agreements was 3.53% in August 2026. This was one basis point higher than in July but five basis points lower than in August 2025.

New fixed-rate mortgage agreements averaged 3.49%, while new variable-rate agreements averaged 4.16%. Fixed rates accounted for 94% of new mortgage agreement volume. The average variable rate was 67 basis points above the fixed-rate average.

Renegotiated mortgages totalled €492 million in August. Fixed rates represented 93% of those agreements, with an average rate of 3.24%—21 basis points lower than a year earlier.

These averages do not represent an offer available to every borrower. Actual pricing depends on factors including the property, loan-to-value ratio, loan size, borrower profile, lender criteria and, in some cases, the property’s Building Energy Rating.

The Central Bank also notes that its “new business” figures include certain renegotiated agreements. The reporting population expanded to include all banks resident in Ireland from November 2025, so comparisons spanning the methodological change should be treated carefully.

03 / THE OPTIONS

Switching and renegotiating—
are different decisions.

A borrower can potentially obtain a better rate in two ways. The first is to renegotiate or move to another product with the existing lender. This may be operationally simpler because the mortgage remains with the same institution, although eligibility and administration requirements still apply.

The second is to refinance with another lender. This normally involves a new application, affordability assessment, updated financial documents, credit checks, a property valuation and legal work.

The Competition and Consumer Protection Commission says a mortgage switch typically takes six to eight weeks, although individual cases can take longer. The available rate may be influenced by the property’s loan-to-value ratio, the borrower’s repayment record and its BER.

Borrowers approaching the end of a fixed period also have information rights. Under the Consumer Protection Code, lenders must notify customers about cheaper options 60 days before a fixed rate expires, provide personalised estimates for alternative refinancing options and explain the advantages and disadvantages of incentives such as cashback.

04 / THE CALCULATION

A practical—
break-even test.

The appropriate comparison is not simply “current rate versus new rate”. Property owners should examine the total financial effect over the period during which they reasonably expect to retain the new mortgage.

1. Outstanding balance and remaining term. The same interest-rate reduction produces different savings depending on the amount owed and the years remaining.
2. Current and proposed repayments. Compare rates on the same balance and repayment term. Extending the term can lower the monthly payment while increasing total lifetime interest.
3. All switching costs. These may include legal fees, valuation fees, administration charges, a BER assessment and an early repayment or break fee.
4. The fixed-rate period. Calculate the benefit during the rate period being offered—not only across the full remaining mortgage term.
5. Cashback and incentives. Compare the incentive with the higher repayments or costs that may accompany it.
6. Break-even period. Divide the total net switching costs by the expected monthly saving to estimate when the upfront cost is recovered.

For illustration, consider a €250,000 repayment mortgage with 20 years remaining. At 4.5%, the monthly repayment would be approximately €1,582. At 3.5%, it would be approximately €1,450—a difference of around €132 per month.

If the net switching costs were €2,500, the simplified break-even period would be approximately 19 months: €2,500 ÷ €132 = 18.9 months.

This is a hypothetical illustration, not a quotation or prediction. It excludes insurance changes, timing differences, tax considerations and future rate movements. It assumes the balance and remaining term stay the same.

05 / THE TRADE-OFFS

A lower payment can—
be misleading.

A refinance can reduce monthly expenditure without reducing the total cost of the mortgage. Extending a loan from 15 remaining years to 25 years may lower the required monthly payment, but the borrower could pay interest for an additional decade. A fair comparison should show both the monthly repayment and the total projected cost.

Tracker mortgage holders require particular caution. The CCPC warns that switching lender means permanently losing the tracker rate. A temporary fixed-rate offer should not be compared with a tracker solely on the basis of today’s monthly payment.

Mortgage protection insurance may also need to be reviewed. Changes in age or health since the original mortgage was arranged could affect the availability or cost of replacement cover.

06 / INVESTOR RESPONSE

What this means for—
investors and landlords.

• Review financing as part of asset management. Debt costs influence net cash flow alongside maintenance, vacancies and management expenses.
• Ask the current lender first. A competitive internal rate may avoid some of the cost and administration associated with moving lender.
• Use net savings, not the headline rate. Include legal, valuation, break and insurance costs before calculating the benefit.
• Do not extend the term automatically. A lower payment can conceal a higher lifetime interest cost.
• Check product eligibility carefully. Buy-to-let and investment mortgage pricing, lending criteria and consumer protections may differ from principal-home products. Household mortgage averages should not be assumed to apply to an investment loan.

07 / THE ZANORIS VIEW

Financing deserves—
regular attention.

The sharp increase in switching suggests that Irish property owners are becoming more active in managing financing costs. That is a constructive development. Refinancing can form part of regular property and balance-sheet management, particularly when equity, income, property condition or market pricing has changed.

The strongest offer is not necessarily the one with the lowest advertised rate or largest cashback payment. The relevant measure is the net benefit after costs, over a realistic holding period, without relying on an unnecessarily extended loan term.

For landlords, the analysis should be integrated into the property’s wider economics. A modest interest-rate saving can improve resilience, but it cannot compensate for an unsuitable acquisition price, persistent vacancy, underestimated maintenance or weak underlying demand.

The Q3 figures demonstrate renewed refinancing activity; they do not establish that switching is appropriate for every borrower or predict the future direction of mortgage rates. Each loan requires an individual assessment.

For property owners and landlords reviewing how financing fits into their longer-term plans, Zanoris welcomes a measured conversation about property strategy, operating assumptions and asset resilience.