Irish people are moaning concerning the expensive mortgage rate. (Image via: The Adviser)

Irish Banks' Mortgage Hikes, EU Rates Decline

When the rate declines, banks decide to rob its customers under the daylight. Since the rates across European Union declined, Irish decided to set a new mortgage rate, increasing by 0.3% to 3.03% since April, up by 3 points from March’s rate.

Throughout Europe, the average mortgage rate stands at 1.7%, last March the average was 1.74%.

In other words, starting April, the Irish has to pay the staggering amount of €150! This amount is double from the amount paid by French and Germans.

The mortgage rate is now the second most expensive tariff across the European continent. The only country that exceeds the rate is only Greece, 3.2%, which is reasonable, since the Greeks are currently drenched in debt.

The hike might have been caused by European Central Bank (ECB) lending rate that stayed at 0% for several years. And, the ECB stated that it would keep the rate at such until first half of 2020.

The accumulation of the mortgage by April was €598 million, summing up to €2.3 billion from January to April, 11% more than the amount gathered last year. And by the end of the year, the amount gathered will be around €7 billion.

Brokers Ireland, a broker firm in Ireland representing 1,250 broker firms, stated that the hike had no reason. According to the firm, the amount of €7 billion was rather weak, a clear indication of lacking in affordable property.

Source: https://www.independent.ie/business/personal-finance/banks-fleece-homeowners-for-extra-2k-as-eu-rates-fall-38220970.html