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Average first-time buyer in Ireland pays 150 more for their mortgage each month

Written by Robert McHugh, on 9th Nov 2018. Posted in Ireland

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Latest figures from the Central Bank today show that first-time buyers in Ireland continue to pay higher mortgages rates than customers in any other country in the Eurozone.  

According to the Central Bank, the average interest rate issued on a new mortgage in September was 3.08% (a fall from 3.15% in August). Although low for Ireland by historical standards, this compares to an average rate of just 1.76% across the Eurozone. 
 
Furthermore, the average first-time buyer mortgage is around €220,000. This means a typical first-time buyer who’s borrowing that amount over 30 years will pay €150.04 a month more for their mortgage compared to the Eurozone average, or over €1,800 a year.   
 
The Banking & Payments Federation Ireland say the average first-time buyer mortgage is around €220,000. This means a typical first-time buyer who’s borrowing that amount over 30 years will pay €150.04 a month more for their mortgage compared to the Eurozone average, or over €1,800 a year.  

The figures also show that the popularity of fixed rates remains strong and these accounted for 64% of new mortgage lending in the three months to September (up from 54% only in May). However, this is still relatively low by European standards where over 80% of mortgages are fixed.
 
Speaking this week, Head of Communications at price comparison and consumer website bonkers.ie, Daragh Cassidy said, "Although the further slight fall in mortgage rates this month is welcome, it’s still not enough and it’s incredibly frustrating that so long into the economic upturn, rates remain so elevated here. Not only are first-time buyers being priced out of the market due to rapidly rising house prices, they also have to contend with the highest mortgage rates in the Eurozone, which puts added pressure on affordability."

Source: www.businessworld.ie 

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