Dublin: According to new research from the Banking and Payments Federation of Ireland, mortgage repayments in the country have been on an upward trajectory for the past two years. The level of repayments had increased even before the burden of the ECB interest rate hike was passed on to the country’s mortgage holders.
In accordance with the research, average mortgage repayments increased by €110 per month for first-time home buyers and by €150 for those moving to rented homes, with first-time buyers experiencing a €110 increase in monthly mortgage repayments.
The research shows that monthly mortgage arrears had risen by 12% as early as the end of June before the European Central Bank raised official rates over the previous two years, after which the ECB raised lending rates to 2%. The rate is expected to rise by half a percentage point beginning next month. It is observed that with this rate increase on the mortgages, the repayment will be heavy.
Both AIB and the Bank of Ireland raised rates last month with new fixed-rate lending rates.
Half of all mortgage applicants are first-time home buyers.
According to the CSO, half of the new mortgage takers in the first half of this year were first-time home buyers. Between January 2020 and June 2022, the figures show that one in five first-time borrowers and two in five home movers borrowed less than they could have under central bank mortgage rules.
The figures also reveal that house prices in Ireland have risen by 10.8 percent in a year. In the 12 months to September, prices rose 9.4 percent in Dublin, compared with 11.9 percent elsewhere in the country, the CSO said.
Irish Samachar English News
Kindly click the link below to join WhatsApp group chat to get important news and breaking news from Irish Samachar.