Irish mortgage rip-off the course? Here home buyers are paying €2,200 more than the Eurozone average

  • Irish mortgage rip-off the course? Here home buyers are paying €2,200 more than the Eurozone average
    Independent.t. E.
    Home buyers in this country to pay an additional €2,200 per year mortgage payments than the average for the Eurozone.
    https://www.independent.ie/business/personal-finance/irish-mortgage-rate-ripoff-home-buyers-here-paying-2200-more-than-eurozone-average-37204170.html
    https://www.independent.ie/business/personal-finance/property-mortgages/article37204169.ece/5e2aa/AUTOCROP/h342/property-comment.jpg

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Home buyers in this country to pay an additional €2,200 per year mortgage payments than the average for the Eurozone.

New Central Bank data show, the rates increased slightly in June to average 3.23 PC, the highest in the currency area.

Rates vary throughout Europe but average of 1.78 PC, according to the regulator.

Interest rates here have in mind the typical first-time buyer who borrows €250,000 over 30 years will pay an extra €188 per month compared to those on the continent.

It works more than €2,200 per year.

Daragh Cassidy price comparison and switching website crazy.t. E. it says borrowers have received very low quality.

“Within four years after the recession came to an end, the Irish mortgage rip-off rates.”

He said that despite the recent rate cuts from some of the major banks, the Irish mortgage holders continue to pay more for a mortgage than any other country in the Eurozone.

And the gap is getting bigger.

Last month, Ulster Bank and IR cut fixed rates, but there still must be a response from aib and Bank of Ireland, which controls about 60pc of the mortgage market.

Mr. Cassidy said, “a first-time buyer who takes out a mortgage in the amount of 250 000 Euro in Ireland for more than 30 years will pay about €1,085 a month based on the average prices.

“In Europe, they will pay an average of €897. So in Ireland we have to pay an extra €188 per month to the banks, or almost €68,000 additional over the life of the mortgage. It’s infuriating,”.

He advised first-time buyers to study the market.

Huge variety of bets and incentives offered by different lenders.

“If you already have a mortgage then look at switching. Recently, the Irish mortgage holders are reluctant to switch, which is crazy given the economy,” Mr. Cassidy said.

Central Bank data show that almost half of new loans drawdown at private homes in the period from April to June was at fixed rates for more than three years.

Meanwhile, the regulator said that interest rates on new time deposits of households fell in June.

Banks pay only 0.05 PC. This represents a 3 basis point decline during the year.

At the rate of 0.05 PC means that someone with €10,000 on Deposit will receive just €5 in interest before taxes for the year.

The equivalent rates in the Euro area fell by 4 basis points over the same period, but remain slightly higher on the PC is 0.36.

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