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Banks here top interest rate 'league of shame'

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Official figures show mortgage rates here are the highest in the eurozone. Stock picture

Official figures show mortgage rates here are the highest in the eurozone. Stock picture

Official figures show mortgage rates here are the highest in the eurozone. Stock picture

Banks in this country have again topped the "league of shame" after official figures show mortgage rates here are the highest in the eurozone.

The elevated level of rates mean a first-time borrower who takes out a €250,000 mortgage will end up paying almost €70,000 more over the life of the loan than the average in the euro currency area.

The average interest rate issued on a new mortgage in July was 3.21pc, which is a slight fall from the rate of 3.23pc in June, according to the Central Bank.

Banks including Ulster Bank and KBC have recently cut their fixed rates, with Ulster offering a two-year fixed offer of 2.3pc.

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But rates here are still notably higher than the Eurozone average of 1.77pc.

This means a typical first-time buyer who has borrowed €250,000 over 30 years will pay €190 a month more than their European counterpart, according price comparison site Bonkers.ie.

Over the lifetime of the mortgage, this equates to more than €68,000 extra.

Daragh Cassidy of Bonkers said the data shows Ireland tops the "league of shame."

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