It costs a typical home loaner in Ireland € 2,000 more per year than the average paid in the Eurozone.
Charlie Weston Twitter
Home buyers in Denmark are being offered « free » mortgages, which has brought Irish mortgage rates in sharp contrast.
Brendan Burgess of the Fair Mortgage Rate Campaign said the central bank and government should prevent banks from doing this charge high interest rates.
Denmark uses the krona and is not part of the euro currency bloc, although it is a member of the European Union.
Countries that use the euro have mortgage rates that are on average half what this country is.
This means that a typical borrower here costs € 2,000 more per year than the average who lives in the currency zone.
Mr. Burgess said, “This 0 percent mortgage rate is a reflection of what is happening in the real world, and interest rates are falling to 1 percent everywhere.
« However, in Ireland we will tolerate banks charging interest rates up to 4.5 percent and the government and central bank will do nothing to prevent this. »
Mr Burgess said it was Strange that most Irish borrowers don’t fret about being billed € 300 a month more than they should be charging.
Ireland has moved from having the third highest mortgage rate in the euro zone in September to number two Greece is developing.
Banks argue that they cannot lower their interest rates to the level of France and Germany because they have to set aside far more capital than lenders in other European countries when issuing a new mortgage.
Danske Bank, which pulled out of this market a few years ago after breaking away from low-cost trackers, said it will likely follow its competitors with 0 percent mortgages.
Dänema rk has a so-called pass-through system. This means that the mortgage interest is tied directly to the bonds used to fund the loans.
An INM website
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