Fixed-rate rise as mortgages still too dear
HOMEOWNERS are increasingly choosing fixed-rate mortgages, as the rate for all home loans here is still dearer than the European average, the latest figures from the Central Bank show.
Fixed-rate loans accounted for more than half of the mortgages last winter, with 56% of borrowers choosing them in the three months leading up to November.
A spokesperson said: ‘The share of euro area fixed-rate mortgages over the past three months remains high at 80%.’ New figures, released yesterday, also show the average interest rate on new variable-rate mortgages here stands at over 3%, while in the rest of the eurozone it is kept below 2%.
Experts at the Central Bank examined data on new mortgages in the three months up to November to produce the latest report on mortgage lending.
A spokesperson for the bank said yesterday: ‘The weighted average interest rate on new variable-rate mortgage agreements (excluding renegotiations) stood at 3.25% in November. The rate on all new agreements, fixed and variable (excluding renegotiations) stood at 3.18%. ‘The equivalent euro area rate was 1.83%.’ A Central Bank spokesperson said: ‘The volume of new mortgage agreements (excluding renegotiations) amounted to €703million in November 2017, bringing new agreements to €6.4billion over the past 12 months.
‘This compares with new mortgage agreements of €4.9billion in the 12 months to November 2016.’