Fixed rate home loans on the rise

The high costs banks charge for their variable rate mortgages are driving home buyers to choose fixed rate home loans, Central Bank figures suggest.

The figures show demand by first-time and existing homeowners was behind a net increase of €2.3 billion in fixed-rate home loans in 2015.

Floating rate, or variable, home loans for homeowners and buy-to-let landlords fell by €4.3bn in the year, according to the bank’s bulletin on personal credit and deposits trends.