A recent survey conducted by the Consumers' Association of Ireland (CAI) shows that consumers may save substantially on mortgage rates by shopping around. The survey of all 12 mortgage lenders appears in CAI's monthly magazine Consumer Choice and reveals that the cost per £1,000 (€1,270) per month on a 25-year variable rate mortgage can differ by up to 41 pence. On an £80,000 mortgage paid over 25 years, this could add up to a difference of almost £10,000 (assuming the difference remains at 41 pence) says CAI.

Buyers should also beware of first-time mortgage promotional offers. These mortgages often provide a reduced rate at the outset and although they save money in the short term, they may not be good value in the long term.

CAI also believes that lenders should pass the reduction in interest rates onto their customers so that mortgage rates are closer to the base rate of 2.5 per cent.