Covid 19 pandemic had an effect of first time property buyers

Ireland is now rated on the top with Greece for having the most expensive home loan rates.

In Ireland, the cost of property is the single biggest challenge facing potential buyers and the pandemic is also causing a headache to many first time buyers.

The Central Bank has released latest figures, which show that the average interest rate did not move in November when compared with the previous month.

On an average, the new mortgage rate in this country is more than double the average for the euro area. In November this was 1.31pc.

In the latest survey of retail interest rates by the Central Bank, it commented that “Ireland and Greece had the joint highest mortgage interest rates across the euro area in November.”

The persistent high cost of mortgages in this country is despite new player Avant Money offering rates as low as 1.95pc to those with a lot of equity in their homes.

While looking across the eurozone, high rates are coasting the borrowers here around €2,000 more a year.

High rates are costing borrowers here around €2,000 more a year than the average costs across the eurozone.

About the survey

The research was conducted by Red C, and was conducted amongst those aged between 25 and 45 who wishes to buy or build in the next few years.

The survey pointed out that a shortage of supply in desired areas and the inability for borrowers to save enough for a deposit continue to be seen as barriers for those trying to get on the to the scheme.

Half of the people who attended the survey said that the global pandemic had distorted their plans to buy a property. On the other hand, one in four said that the pandemic helped them to buy a home. one in five said that the pandemic helped them to rethink and reach at a better conclusion about the property.

“While the cost of property is still a prominent issue, the research is also showing an increasing number of first-time buyers saving larger amounts towards their deposit, driven most likely by the lack of spending options this year.” Bank of Ireland’s Brian Vaughan said.