Mortgage holders at risk as debt soars

HOUSE prices in Ireland are the second-highest in the EU, with the vast majority of families struggling to meet mortgage repayments if interest rates rise sharply, the Central Bank warned yesterday.

Figures released by the bank yesterday also show we are more in debt than ever with the level of personal debt rising from €12.5 billion in 1993 to €68.5bn in 2003.

Spiraling property prices have seen many couples priced out of the market, with house prices here the highest in Europe, except for London. The average house price in Dublin is €291,000, compared to €324,000 in London and €223,000 in Amsterdam.