MORTGAGE INTEREST rates in Ireland are on average significantly lower than in other euro countries, according to the latest Central Bank interest rate data.

The weighted average interest rate for outstanding Irish mortgage loans was 2.98 per cent at the end of January, down 44 basis points since September. The average interest rate for outstanding mortgages across the rest of the euro zone was 3.87 per cent.

The Central Bank said the difference reflected the higher percentage of Irish homeowners on tracker mortgages, which have become cheaper in line with recent ECB rate cuts.

While the average mortgage interest rate has been falling, the figures, published yesterday, showed the average rates on household deposits in Ireland have increased over the past year, reflecting efforts by Irish credit institutions to get extra funding by offering attractive rates on longer-term deposit products.

The figures showed the rate of interest on household deposits with agreed maturity up to two years averaged 3.57 per cent, compared to a euro area average of 2.76 per cent.

Interest rates on deposits with agreed maturity over two years have also increased, with Irish resident credit institutions reporting a weighted average rate of 2.37 per cent.