News
New Irish mortgage rates 3rd lowest in euro area
Interest rates on new mortgages remained unchanged in November, according to the latest figures from the Central Bank.
The weighted average rate on new mortgages was 2.57%. This is down 14 basis points, or 0.14% compared to November 2021.
The average for new fixed rate mortgages, which now comprise 93% of all new mortgages, was 2.48%, up 2 basis points or 0.02% compared to October but down 11 basis points or 0.11% compared to a year earlier. The average variable rate for new mortgages was 3.87%.
Irish mortgage rates remain below the euro area average. In fact, new rates here are the third cheapest in the euro area after Malta and France.
“I don’t think anyone had in their forecasts that Ireland was going to have among the cheapest mortgage rates in the Eurozone,” said Darragh Cassidy from bonkers.ie.
“Not least the third lowest. However this is unlikely to be the case for much longer unfortunately.”
“These figures apply for mortgages which were drawn down in November and applied for several weeks or months beforehand. Someone who applies for a mortgage today will be faced with much higher rate options.”
The average rate for new mortgages across the euro area was 2.84% in November, up 19 basis points or 0.19% compared to October and 1.54% higher than November 2021.
The volume of mortgage lending in Ireland rose by 32% in November to €1.4 billion compared to October.
This was just over 71% more than November 2021.
The rate on new consumer loans was 7.99% in November.
This was an increase of 21 basis points or 0.21%. The amount of money loaned out increased by 32% to €174 million, compared to November 2021.
Interest rates on deposits remained low, however.
The rate on overnight household deposits was 0.03%. Rates on fixed term deposits rose to 0.48%. But the equivalent average deposit rate across the euro area was 1.26%.
The European Central Bank’s main lending rate rose to 2.50% in December while its deposit rate rose to 2%.
Further rate rises are expected when its Governing Council meets at the start of next month.
Article Source: New Irish mortgage rates 3rd lowest in euro area – Robert Shortt – RTE
Back to Uncategorised
