Latest news with #DaraghCassidy
Irish Independent
09-07-2025
- Business
- Irish Independent
Mortgage rates fall to lowest level in more than two years
Mortgage rates have fallen to their lowest level in more than two years in wake of European Central Bank cuts. The gap between the average rate in Ireland and that of the Eurozone also continues to narrow. People taking out a new mortgage are now paying 3.66pc, according to Central Bank of Ireland data. The rate has fallen over the past two months. It was 4.17pc in May. Current new borrower mortgage rates of 3.66pc here compare with a rate of 3.32pc on average across the Eurozone. However, rates varied hugely across the currency bloc as they have done for years. They are as low as 1.80pc in Malta and as high as 4.29pc in Latvia. And wide variations also exist within Ireland. For the average first-time buyer, borrowing €300,000 with a 10pc deposit, variable rates range from 3.18pc to 4.70pc, according to an analysis by a brokerage and price comparison site. Rates for a three-year fixed mortgage range from 3.20pc to 4.85pc. Prospective first-time buyers and switchers need to shop around when applying for a mortgage, said Daragh Cassidy of 'Mortgage rates are now at their lowest level in over two years, which is obviously good news for prospective first-time buyers and those looking to switch their mortgage over the coming months,' he said. The European Central Bank (ECB) is expected to keep rates on hold at its next monetary policy meeting on July 24. But it will likely cut rates one more time before the end of the year, meaning mortgage rates should creep slightly lower over the coming months. There have been eight ECB rate cuts in little over a year. Mr Cassidy warned new buyers, switchers and those coming to the end of a fixed rate that the 3.66pc 'average rate really is just that, an average'. He said there are 10 lenders in the Irish mortgage market at present and there's a wide variation in rates across them all. And different lenders offer different cashback deals and incentives, which also need to be taken into account, he said. Mr Cassidy said a variable rate as low as 3.18pc is available for a standard first-time buyer with Avant Money's new tracker-like mortgage product. He said AIB's variable rate is 4.15pc. 'For someone borrowing €300,000 over 30 years, that's a difference of over €164 a month or almost €2,000 over just one year,' he said. 'And if you went with the most expensive variable rate on the market, which is 4.70pc, you end up paying over €261 more each month. It's a huge difference.' He encouraged consumers to compare the market and shop around when applying for a mortgage, either as a first-time buyer or switcher. 'A good broker will help you find the best rates for your particular circumstances,' he said. He said borrowers do not have to have a current account or any type of relationship with a mortgage provider in order to apply for a mortgage with them. Mr Cassidy said borrowers should not 'go with what you know'.
RTÉ News
09-07-2025
- Business
- RTÉ News
Mortgage interest rates fall to over two year low in May
Irish mortgage interest rates fell to their lowest rate in over two years in May, according to new figures from the Central Bank. The average rate for the month was 3.66% on new mortgages, which was down slightly on the April rate of 3.72%, and over half a percentage point lower than for May 2024 - when the average interest rate was 4.17%. May's figure was the lowest rate since April 2023. However, Irish mortgage rates are still significantly higher than the euro zone average of 3.32% - although the gap has narrowed. Irish rates are now the eighth highest of all countries that use the euro. Latvia has the highest average mortgage rates at 4.29%, while Malta has the lowest at 1.8%. The sustained fall reflects successive reductions in European Central Bank interest rates. Since September 2023, the ECB has cut its main interest rate eight consecutive times, bringing it from 4% down to 2%. According to the Central Bank, the total volume of new mortgage lending in May was €943m, which was a €39m - or 4.3% - increase on the previous month, and was €122m (15%) higher than May 2024. Commenting on the figures, Daragh Cassidy from said the reduction in rates "is obviously good news for prospective first-time buyers and those looking to switch their mortgage over the coming months". "Although the ECB is expected to keep rates on hold at its next monetary policy meeting on 24 July, it will likely cut rates one more time before the end of the year, meaning mortgage rates should creep slightly lower over the coming months," Mr Cassidy said. "But the 3.66% average rate really is just that - an average. There are ten lenders in the Irish mortgage market at present and there's a wide variation in rates across them all. And different lenders offer different cashback deals and incentives, which also need to be taken into account," he said. "For example, a variable rate as low as 3.18% is available right now for a standard first-time buyer with Avant Money's new tracker-like mortgage product," he said. "But it's 4.15% with AIB. For someone borrowing €300,000 over 30 years, that's a difference of over €164 a month or almost €2,000 over just one year. And if you went with the most expensive variable rate on the market, which is 4.70%, you'd end up paying over €261 more each month. It's a huge difference," he explained. "I'd really encourage consumers to compare the market and shop around when applying for a mortgage - either as a first-time buyer or switcher. A good broker will help you find the best rates for your particular circumstances," he added. Meanwhile, Senior Mortgage Advisor of NFP Ireland Fiona McMahon said "while it's encouraging to see movement, Irish borrowers are still paying significantly more than many of their European neighbours, despite recent ECB action aimed at easing borrowing costs". "The ECB recently cut rates for the eighth time since June 2024. This shift has prompted some lenders to respond, notably Avant Money, which became the first to reintroduce mortgage rates under 3% since 2022. However, that kind of competitive pricing remains the exception, not the norm," she said. "We're still seeing a cautious stance from many banks, particularly when it comes to passing on reductions to variable and fixed rate customers," she noted. "Their rationale that they didn't raise rates as aggressively during the last cycle, may hold technically, but it offers little comfort to homebuyers currently grappling with record-high property values and limited supply," she added.
Irish Examiner
09-07-2025
- Business
- Irish Examiner
Irish mortgage rates fall to lowest level in more than two years
Irish mortgage rates fell to their lowest level in more than two years in May as consecutive rate cuts by the European Central Bank (ECB) have continued to been passed onto customers. New figures released by the Central Bank of Ireland on Wednesday show that at 3.66%, the gap between the average Irish rate and that of the Eurozone continues to narrow. The latest Irish figure is down six basis points from the previous month, with the equivalent euro area average decreasing by two basis points to 3.32%. However, rates varied hugely across the 20-country currency bloc, ranging from as low as 1.8% in Malta to as high as 4.29% in Latvia. The average interest rate on new fixed-rate mortgage agreements, which constitute 84% of all new mortgage agreements, was 3.49% in May, six basis points lower than the previous month and 53 basis points lower than in May 2024. Meanwhile, the weighted average interest rate on new variable rate mortgage agreements was 4.57% in May, 12 basis points up from April and 10 basis points higher in annual terms. However, wide variations also exist within Ireland, with an analysis by showing that for the average first-time buyer borrowing €300,000 with a 10% deposit, variable rates range from 3.18% to 4.70%. In addition, rates for a three-year fixed mortgage were found to range from 3.20% to 4.85%. "There are 10 lenders in the Irish mortgage market at present and there's a wide variation in rates across them all," said Daragh Cassidy of "And different lenders offer different cashback deals and incentives, which also need to be taken into account." Speaking on the figures, Fiona McMahon, Senior Mortgage Advisor at NFP Ireland said: 'Today's CBI figures confirm that mortgage interest rates in Ireland are continuing to fall but only modestly, and not fast enough to keep pace with wider eurozone trends. "While it's encouraging to see movement, Irish borrowers are still paying significantly more than many of their European neighbours, despite recent ECB action aimed at easing borrowing costs." "We're still seeing a cautious stance from many banks, particularly when it comes to passing on reductions to variable and fixed rate customers. Their rationale that they didn't raise rates as aggressively during the last cycle, may hold technically, but it offers little comfort to homebuyers currently grappling with record-high property values and limited supply."
The Journal
03-07-2025
- Business
- The Journal
Energy bills 'may not see increases' as industry to raise up to €18bn for grid upgrades
HOUSEHOLD ENERGY BILLS may not see large increases as the sector seeks to raise funds for an up to €18bn revamp of Ireland's energy grid, price comparison site has said. The Commission for Regulation of Utilities (CRU) has published a proposed investment plan, seeking to upgrade Ireland's energy grid between 2026 and 2030. It could cost between €14.1bn and almost €19bn, its proposal says. This could add up to €16 per year to household bills, but communications manager Daragh Cassidy has suggested that substantial increases may not hit consumers' bills if wholesale energy costs fall. Wholesale energy prices increased massively following the Russian invasion of Ukraine. This resulted in many household energy bills getting more expensive in recent years. According to Cassidy, wholesale costs for Irish providers are up to 80% higher than they were before the war. As the market stabilises, there's a possibility that substantial decreases in supplier prices may 'cancel out' the need to increase consumer bills. 'So we may not necessarily see a rise in consumers' bills,' he said. Advertisement Upgrading the Irish energy grid was debated following Storm Éowyn earlier this year, where substantial power outages continued in parts of the country for almost a month after the passing of the storm. Long-standing issues with the grid are now causing bottlenecks, such as supply shortages and resilience issues. This, according to Cassidy, is now impacting the delivery of housing and the state's ability to meet climate targets. Cassidy said: 'While the potential €6 to €16 a year increase in households' electricity bills may not be welcomed by consumers, it's moderate in the overall scheme of things.' A €16 annual increase may be a 'price worth paying' in that context. However, it is up to individual providers to decide how they pass increases in network or grid fees onto consumers. Cassidy said companies can choose to absorb the costs or increase bills. A public and industry consultant phase on the proposed upgrades will now begin, with the CRU set to make a final decision later this year. The energy regulator encourages customers to shop around and switch suppliers regularly to get the best deals. The Irish Independent reported of confusion among providers over the extent of the possible increases to bills. Providers, according to the newspaper, say fee hikes will need to be much higher than €16 per year to raise the funds needed for the upgrades. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
RTÉ News
03-07-2025
- Business
- RTÉ News
Energy operators propose investment of up to €18.98bn to maintain networks
The operators of Ireland's energy system, ESB Networks and Eirgrid, have proposed an investment of up to €18.98 billion over the next five years to maintain and upgrade their networks to meet current and future demand. Such an investment, if approved by the Commission for Regulation of Utilities (CRU), would add up to €16 to customers' electricity bills each year from 2026. However, the CRU is proposing an initial €14.1 billion funding package across both companies over the five-year period (2026-2030) that would see at least €6 added annually to bills. This figure could be increased to €18.08 billion based on ESB Networks and Eirgrid meeting annual delivery targets. The CRU is now consulting with stakeholders on the regulatory and financial framework that will support these investments. It will make a final decision later this year, with the new investment plan and costs starting from January 2026. It published the details today as part of the Draft Determination on Price Review 6 (PR6), through which the CRU evaluates and approves the proposed investment plans submitted by the network companies to upgrade the electricity grid and associated infrastructure. The regulator said the proposed investment will deliver secure, reliable, and resilient networks and supplies, and empower customers through a more digital, flexible energy system with better customer services. PR6 deliverables will include the connection of housing, delivery of priority projects unlocking additional generation capacity, new offshore wind infrastructure capability, enabling delivery of electric vehicles, and the investment needed for a storm-resilient and smarter grid. The CRU said Ireland is going through "an unprecedented change in our use and demand for electricity and significant investment is required to ensure that Ireland has a high-quality network that supports the current growth in demand. "The network must also facilitate the move away from fossil fuels to cleaner energy and deliver a range of measures, such as microgeneration, electric vehicles, electrification of heat, and other services, that will provide a more sustainable use for our electricity network," it added. Commissioner at the CRU Fergal Mulligan said, "we realise that these significant investments may lead to increases in consumer bills in the short term and, given the financial pressures that many households currently face, network companies must keep the cost of moving to cleaner energy as low as possible for customers. "In terms of the cost to the consumer of this investment, it will be assessed on a year-by-year basis," he added. "But, as a guide, over the five years we expect the average annual increase to be between €6 and €16, however, this will depend on a number of factors, including the level of delivery by the network operators and how suppliers choose to recover network costs," he said. Daragh Cassidy from comparison site said the latest price review by the CRU "really underlines the scale of investment and work that's needed in our grid over the coming years. "The demands of a rapidly growing population, an increase in the number of data centres, the electrification of the wider economy, and the transition towards Net Zero all present various challenges, and of course costs - which have to be paid for somehow," he said. "A large part of our grid is also aging and many poles and wires need to be replaced or put underground. And this costs money too," he added. "While the potential €6 to €16 a year increase in household bills may not be welcomed by consumers, it's moderate in the overall scheme of things. "Bottlenecks in our electricity grid are now impacting on our housing delivery as well our ability to achieve our climate targets, which are among the biggest issues facing the country right now. So you could argue this is a price worth paying if it helps solve them," he added. "In the meantime, the current price review still has one year to run. In August the CRU will announce whether to increase grid fees for the 2025 to 2026 year. Last year it approved a hike that equated to an increase of just over €100 a year to consumers' bills, but it's expected to be much lower this year," he said. According to the CRU, the most recent Estimated Annual Bill (EAB) for electricity customers was €1,802 (as of April 2025), with network tariffs representing around 20-30% of that figure. Suppliers determine what level of these charges that they either absorb or pass onto their customers. Mr Cassidy added that "if the wholesale cost of electricity, which makes up around half of the price we pay for our electricity, were to fall substantially this might cancel out any increase in grid fees over the coming months and years. "So we may not necessarily see an increase in consumers' bills. And with electricity prices in Ireland still around 70 to 80% above where they were before the war in Ukraine broke out, you'd hope this is the case," he added.
