Local Fianna Fáil TD, Frank O’Rourke, has called on the Government to press for the formation of a European Single Market for mortgages, as Ireland’s mortgage rates continue to be significantly higher than the average EU mortgage rate.
“The average standard variable rate for a mortgage in Ireland is currently 3.26%. This is nearly 1.5% higher than the average Eurozone rate which stands at 1.83%. In my view the Government have let down Irish customers as recent reports indicate that Irish first-time buyers will pay up to €61,641 more in interest costs over the lifetime of their mortgages than anywhere else in Europe.”
“For example, an Irish borrower with a mortgage of €200,000 is paying around €250 per month more than they would be paying in the average Euro area country,” stated Deputy O’Rourke.
“When we take this in conjunction with the Tracker Mortgage scandal, where over 33,700 customers were put on variable mortgage rates as opposed to the more competitive tracker rates.”
“We have been campaigning for mortgage holders, and particularly those in mortgage arrears, for some time now. Since being elected last year, I have worked with our Finance Spokesperson, Michael McGrath TD, to keep a focus on their concerns. All of the instruments available to the Government and the Central Bank must now be used to ensure that Irish mortgage holders receive fair treatment when compared to other EU countries.”
“As I have said in the Dail, mortgage rates in Ireland remain dramatically out of line with EU norms and must be addressed. The higher mortgage rates here are taking money out of our local economy and adding to the bank profits. We need a EU approach to securing better rates in Ireland,” concluded Deputy O’Rourke who has previously called for a similar approach in relation the provision of motor insurance in Ireland.