Irish mortgage holders still paying more than other Europeans

Brokers Ireland says difference in interest rates costs Irish borrowers up to €78,000

Brokers Ireland: “If you are in a position to switch and have not reviewed your situation you could be in for a very pleasant surprise.” Photograph: iStock

Brokers Ireland: “If you are in a position to switch and have not reviewed your situation you could be in for a very pleasant surprise.” Photograph: iStock

 

Irish consumers are still paying more than their European counterparts for basic mortgage products, Brokers Ireland has said.

The umbrella group was reacting to the latest Central Bank data on interest rates, which show the average rate charged on new mortgages here over the past 12 months was 2.78 per cent compared to a euro area average of 1.34 per cent.

This differential costs Irish consumers over €78,000 on a €300,000 mortgage over 30 years, it said.

“The rate published by the Central Bank today applies to new mortgages taken out in September. However, there are thousands of mortgage holders who have taken out mortgages over the last number of years who are paying more than this, substantially more in some cases,” Rachel McGovern, the group’s director of financial services, said.

“If you are in a position to switch and have not reviewed your situation you could be in for a very pleasant surprise,” she said, pointing to Central Bank research from the end of last month that identified 182,272 so-called “eligible switchers”.

The Central Bank study found that 61 per cent of eligible mortgage holders stood to save more than €1,000 within the first year if they switched providers, and more than €10,000 over the remaining term of the loan.

Ms McGovern said mortgage holders now have options and the same solution will not fit every circumstance.