High mortgage rates and strict mortgage regulations are greatly effecting borrowers. According to the Independent, Ireland’s high mortgage rates are costing borrowers up to €60,000.
Although Irish mortgage rates have dropped in May according to data from the Central Bank, the rate remains the second highest in all of the eurozone. The only country that has higher mortgage rates than Ireland is Greece.
The average rate on all new mortgages averaged to 3.01% in May. The rate decreased by two basis points since April. However, the average rate in the european area amounts to only 1.68%. However, in comparison to the United States, the average rate is around 3.5%. The lowest mortgage rate in the eurozone is Finland. The rate defined in Finland is less than 1%.
According to the Banking and Payments Federation, the average first time buyer mortgage is now defined as €225,000. This means that the typical first time home buyer who is borrowing €225,000 over 30 years will pay about €143 more per month for their mortgage. If the average first time was able to borrow under the eurozone average rate, …