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Thursday 19 October 2017

Home loan rates up, says Central Bank

Charlie Weston Personal Finance Editor

DOMESTIC mortgage rates have gone up, a Central Bank report shows.

The development comes as some banks tighten their lending criteria, despite insisting they are open for business.

House buyers are now being charged an average rate of 3.15pc, up marginally from earlier in the year, according to the study.

But experts disputed the figure, saying the real average rate was 4.18pc -- and borrowing €200,000 at that rate over 30 years will mean monthly repayments of close to €1,000.

But payments would fall to €854 if the rate was 3.15pc.

The Professional Insurance Brokers Association (PIBA) said the rates on offer to new home buyers were not attractive.

PIBA's Rachel Doyle said the European Central Bank needs to drop its rate by 0.5pc, bringing it into line with the UK rate, given the weak economic data coming from Europe.

Irish Independent

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