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Understanding your interest rates

Here’s everything you need to know about interest rates and policies that apply to your mortgage.

Learn more about the interest rate on your loan

If you have a tracker or variable mortgage, we’ll write to you about any changes to your interest rate and what these changes mean for you.

ECB base rate for tracker mortgages

 
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Variable interest rate

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Reference interest rates

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ECB base rate for tracker mortgages

Your tracker interest rate changes in line with the European Central Bank (ECB) base rate. If the ECB announces a new rate, we will write to tell you how this will affect your tracker rate before we make any changes.

  • Current ECB base rate: 2.15%
  • Latest change: a rate decrease of 0.25% (this was announced on 5 June 2025 and came into effect on 11 June 2025)

Learn more about the official lending rate and details of previous rate changes here. This link opens in a new tab.

Variable interest rate

If you have a variable interest rate mortgage, the interest rate can go up or down based on a number of factors. These are set out in our Variable Interest Rate Policy (PDF). This document opens in a new tab.

Reference interest rates

If your loan is linked to a reference rate or benchmark rate (see table below), your overall interest rate will be made up of the following:

  • Reference rate: which is a publicly accessible, independent and regularly updated base rate (such as EURIBOR)
  • Margin rate: This is a fixed percentage added on top of the base rate

If a reference rate becomes negative (less than zero), we treat it as 0%, unless the terms and conditions of your loan state otherwise. This means your total interest rate will simply be the amount of your margin when the reference rate is negative.

Current reference rates

The table below shows the base rates as of 24 March 2026.

Note: These do not include the margin rate.


Rate name

What it stands for

Current rate %

EUR1M

1-Month Euribor (European Interbank rate)

1.940

EUR3M

3-Month Euribor (European Interbank rate)

2.129

 BOE

Bank of England rate

3.75

 ECB

 European Central Bank rate 

2.15

Sterling Overnight Index Average (SONIA) rate

Sterling Overnight Index Average (SONIA) rate is the average interest rate that banks pay to borrow UK pounds (sterling) from each other overnight. This is a market-based interest rate for sterling loans.

The latest SONIA rate is published externally and can be viewed at: /www.global-rates.com/en/interest-rates/sonia/

The SONIA rate applied to your loan is the rate published on the last day of the month before your interest is updated. This update happens on the first day of each month (known as the interest rollover date).

The SONIA rate does not include the margin. Your actual loan interest rate is the SONIA rate plus your agreed margin.

We’re here to help

This can be a challenging time for many of our customers and we are here to help if you are worried about making your monthly repayments.

If you think you will not be able to meet your repayments or if you are having financial difficulties, please call our helpline on 0818 828 828.

It's important that you understand all the options that may be available to you. You can learn more about these options on our Financial difficulties page.

Need more information?

You can find more details in our FAQs:

 


Couldn’t find the answer you were looking for?

If you have any questions about interest rates, please contact Pepper Customer Support on the details below. Please have your loan reference number ready.

Residential mortgage enquiries

Customer Support helpline:
 0818 828 828

Pepper Advantage,
PO BOX 4310,
Shannon, Co. Clare

Commercial loan enquiries

Interest rate queries helpline:
 0818 828 728

CRE Primary Servicing,
PO BOX 697,
Shannon, Co. Clare


Independent advice and support

 

MABS is the Irish money advice service. MABS have been supporting people with money advice, budgeting, and problem debt for 30 years

MABS is free of charge.

Website: https://mabs.ie/

Helpline: 0818 07 2000
 Open: Monday to Friday, 9am-8pm