Three developments defined the Irish mortgage market this quarter: a further ECB rate increase, accelerating house price growth outside the main cities, and a new lender decision that could change how much some first-time buyers are able to borrow. Whether you are buying, moving, or considering a switch, here is what changed in Q2 2026 and what it means for your next move.
Rates are rising, but the impact depends on your mortgage type
The ECB raised its main refinancing rate to 2.40% in June 2026, with the deposit facility now sitting at 2.25% and the marginal lending rate at 2.65%. Policymakers have indicated that one or two further increases remain possible before year-end if inflation proves persistent.
The consequences differ depending on the type of mortgage you hold.
Tracker mortgage holders are affected immediately. Each 0.25% ECB increase is passed directly onto your rate. On a €250,000 mortgage over 30 years, this equates to approximately €30 in additional monthly repayments, or close to €360 annually. Further ECB increases will result in further automatic rises.
Variable rate customers are not affected instantly, though rising ECB rates increase funding costs for lenders. Over time, this tends to be reflected in variable pricing, even where it is not passed on straight away.
Fixed rate customers are protected for the duration of their current term. The key consideration is what happens once that term concludes. Some lenders have maintained current pricing since the June decision, but rates typically adjust once market attention shifts elsewhere. Reviewing your options well in advance of your term ending is worth doing.
If your fixed rate term is approaching renewal, it is worth understanding what rate you will move onto by default and what alternatives are available before that happens.
Where house price pressures are now concentrated
Nationally, demand continues to outpace supply, though the pattern has shifted. Price growth in Dublin and other major cities is moderating as affordability constraints take hold, while counties such as Louth, Kildare, and Wicklow are experiencing faster price growth than the capital.
A significant factor here is the €500,000 price ceiling applied to both the Help to Buy scheme and the First Home Scheme. As city prices increasingly exceed this threshold, first-time buyers are being directed toward areas where properties remain within scheme limits. New-build properties with strong BER ratings also continue to command a premium, reflecting both lower running costs and continued scheme eligibility.
The effects are not uniform across buyer types. First-time buyers face the greatest competition in new-build developments and commuter towns. Movers are encountering limited second-hand stock in established areas. Understanding which locations and property types align with the supports available to you is an increasingly important part of planning your search.
What is happening with borrower activity
First-time buyers continue to account for the majority of the market, representing approximately 60% of mortgage approvals in early 2026. Movers have fallen below 20%, their lowest share since 2014.
Central Bank of Ireland regulations continue to limit most first-time buyers to four times gross income, with second-and-subsequent buyers capped at 3.5 times. Exceptions remain available, though only a limited number are granted annually, and availing of one may affect eligibility for schemes such as the First Home Scheme. This is a decision that warrants careful consideration based on individual circumstances.
The notable development this quarter is Núa Money’s decision to permit certain first-time buyers to borrow up to five times income. This additional capacity may assist buyers in higher-priced areas. However, a higher income multiple does not automatically represent the most suitable option for every borrower, and should be assessed against long-term affordability and any interaction with Government-backed schemes.
Is now a good time to consider switching?
If your mortgage has not been reviewed in some time, this quarter presents a reasonable opportunity to do so. A reduction from, for example, 4.2% to 3.6% may appear modest, but represents a meaningful saving over the remaining term of a loan. A number of lenders continue to offer cashback incentives, which can help offset the legal and valuation costs associated with switching.
A review is particularly worth considering if any of the following apply:
Your variable or fixed rate has not been benchmarked against the market in the past year or two. Your fixed rate term is approaching renewal. You hold a top-up or home improvement loan that could potentially be consolidated at a more favourable rate.
Taking switching costs and any available cashback into account gives a much clearer picture of whether moving lender actually represents good value in your specific situation.
Getting the right advice in a moving market
Sound advice becomes more valuable when the market is in motion. Whether you are buying your first home, considering a move, or reviewing your existing arrangements, speaking with a mortgage broker who can compare the full market gives you a clearer picture of where you stand and what your options actually are.
At Halpin Wealth and Mortgages, we work with buyers and homeowners across Cork and Ireland to navigate the mortgage market with clarity. If you would like to understand how these changes affect your situation, get in touch at hwm.ie or book a free consultation with our team today.
Disclaimer: This article is for informational purposes only and does not constitute financial advice. Halpin Wealth Management t/a Halpin Wealth and Mortgages is regulated by the Central Bank of Ireland. Mortgage lending is subject to Central Bank of Ireland regulations and individual lender criteria. Rates and figures referenced are based on information available at time of publication and are subject to change.