Mortgage rates may be halved under EU loan plan

Irish homeowners could cut their mortgage rates in half under plans to open up the lending market right across the EU.

Standard Irish rates are the highest in the EU as bailed-out banks try to recover and it is currently almost impossible for people to borrow from banks outside the country.

The European Commission plans to produce an action plan next summer that aims to open up the market, allowing competition for mortgages and for deposits and insurance.