New figures show that residents of the republic continue to pay higher mortgage interest rates than most of their European counterparts.
The average interest rate on new Irish mortgage agreements in May was 2.8%, down 7 basis points from the same month a year earlier.
By comparison, the EU average is 1.27%, which means that mortgage holders in the Republic pay the third highest interest rates in the euro area.
New mortgages totaling € 573 million were negotiated in May in the state, up 52 percent from the same month a year earlier, when agreements were cut significantly by the Covid crisis. New mortgages increased by 4% compared to April 2021.
Under the new fixed-rate agreements, which accounted for 79 percent of all loans, the average rate was 2.64 percent, 10 basis points lower than in May 2020.
Revised mortgages in May totaled € 189 million, down 66 percent from the previous month, at a weighted average interest rate of 2.74 percent.
“A slight decrease in interest rates compared to last year is certainly welcome, but it does not mask the fact that rates here remain significantly high compared to our European neighbors,” he said. Darag Cassidy from Bonkers.ie
“The average mortgage for a first buyer is now around 250,000 euros, according to BPFI. Someone who borrows this amount for 30 years pays an extra € 192 per month or more than € 2,300 per year. This is a huge difference, ”he added.