Irish mortgage holders pay highest interest rates in the Eurozone, new figures show

Irish mortgage holders pay highest interest rates in the Eurozone, new figures show

Irish mortgage holders are being hit with the highest interest rates in the Eurozone, according to new figures released today.

The latest Central Bank figures show the average rate on new mortgages as of May was 3.2%, in comparison to an average rate of 1.80% across Europe.

While this is historically low for Ireland, the Central Bank says new mortgage agreements jumped by a third in the 12 months to May.

The figures also show that the popularity of fixed rates continues to rise and these now account for 54% of new mortgage lending. However, this is still low by European standards where 80% of mortgages are fixed.

Commenting on the release, Head of Communications at bonkers.ie, Daragh Cassidy said: “Over four years after the recession came to an end, the Irish mortgage rate ripoff continues. New Irish mortgage holders continue to pay more for their mortgage than any other country in the Eurozone.

"A first-time buyer who takes out a mortgage of €250,000 in Ireland over 30 years would pay around €1,082 a month based on average rates.

"In Europe they would pay on average €899. So in Ireland we’re paying an extra €183 a month to the banks (or almost €66,000 extra over the lifetime of a mortgage). It’s shocking."

"In recent times Irish mortgage holders have been reluctant to switch, which is crazy given the potential savings involved. There’s now a huge variation in rates across all the different lenders so people should switch to the best rate," he said.

Digital Desk

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