Irish mortgage holders are still paying more interest on their home loan repayments than their eurozone counterparts, new Central Bank data shows.
Latest Central Bank figures, published yesterday, show that the average interest rate on all new floating rate loan agreements for house purchase — which includes mortgage renegotiations — stood at 3.11% in July, the most recent monthly data available.
While marginally down —by 23 basis points — on a year-on-year basis, the average Irish rate is still well above the average for the wider eurozone, which stood at 1.82% in July.
The value of renegotiated homeloans totalled €410m in July, with the average interest rate amounting to 2.94%.
Excluding renegotiations, the value of new mortgage agreements in July amounted to €453m, bringing total new mortgage agreements in the past 12 months to €4.5bn. The weighted average interest rate on these fell by 28 basis points, year-on-year, to 3.49%.
The data also showed that variable rate mortgages accounted for around two-thirds of all new mortgage agreements in the past year; significantly above the equivalent eurozone share.
Meanwhile, Central Bank governor Philip Lane was yesterday quoted as saying that while the market response to the Brexit vote has been “relatively limited”, the longer-term impact will “play out gradually over time”.
He said the limited early reaction does not mean the long-term effect on Irish exports will not be notable.
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