Frank O’Rourke TD has again called for Government action on unacceptably high mortgage rates
Frank said “Irish Mortgage rates are noticeably higher than the average European rates and I’m calling on the Government to enlist the support of the EU. Irish banks are charging their customers double the EU mortgage rates. At a time when interest rates across the EU are falling, Irish Banks have increased the cost of taking out a mortgage.”
“My understanding from the Central Bank is that Irish mortgage rates are the second most expensive in the EU. The average interest rate on a new mortgage is around 3.pc compared with the average rate for the euro area of 1.7pc. To put this in real money terms, the average first-time buyer is paying an extra €154 a month for their mortgage, based on a loan of €225,000 paid back over 30 years. Parents and working families are in much need of this extra income to cater for their day to day expenses. In addition, as Brexit brings uncertainties, having this extra €154 per months available for the local economy will bring benefits to local businesses. “
“With our spokesperson on Finance, Michael McGrath TD, I continue to put pressure on the Government to deal with this inequality. I have repeatedly called on the Government to address the rising cost of living issues; such as Mortgage Rates and Insurance rates and they must get support from the EU to deal with this imbalance.”
“We also have a situation, where as the Taoiseach says our mortgage lending rules are ‘very tough’ when he cited situations where couples are trying to save for a deposit to buy a house but have to pay as much €2,000 in rent. We need to provide support to assist young couple buy their home.“