Sunday 11 December 2016

Irish house buyers being charged much higher interest rates than others in euro area - Central Bank

Published 10/04/2015 | 12:38

Mortgages (stock image)
Mortgages (stock image)

Irish house buyers are being charged way above the euro zone average in interest on their mortgages, according to the latest Central Bank data.

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The cost of a typical new mortgage here increased in February, according to new figures from the Central Bank. 

The average interest rate charged for a new variable rate mortgage was 4.2pc in Ireland at the end of February, according to the Central Bank.

The latest figures will add to the controversy over the high cost of Irish loans for customers with Standard Variable Rate mortgages.

When the interest rate on restructured home loans is included the average cost of a new or restructured mortgage falls to 3.38pc. The euro area average was 2.09pc

The average interest paid by all mortgage borrowers however is 2.72pc, a figure that reflects the nearly one-in-two home loans with a tracker rate that has an explicit link to the official ECB rate.

The interest rate for customers with a tracker home loan is typically little more than 1pc.

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