Average mortgage interest rates rose marginally in June, according to new data from the Central Bank, though they remain below the euro zone average.
The average interest rate applied to a new mortgage in June was 3.49%, compared to 3.48% in May.
That is just below the euro zone average of 3.51% for the month.
The increase coincided with the 0.25 percentage point increase in the European Central Bank’s main interest rate in June, which was prompted by rising inflation in the region.
The ECB is expected to raise rates again in September.
“At a time when so many Irish households are already grappling with high living costs – including the significant electricity and gas price increases announced over the summer, higher mortgage bills would add significantly to the financial stress which so many homeowners are under,” said Trevor Grant, chairperson of Irish Mortgage Advisors. “These financial pressures will be felt all the more acutely during the fast-approaching autumn and winter months when households rely more heavily on heating and lighting.”
However Mr Grant said there was strong competition in the Irish mortgage market, which would help to restrain further rate increases by lenders.
He said now could be a good opportunity for customers to review their situation and look to see if a better rate is available to them.
Today’s Central Bank data also shows that, while Irish mortgage customers are doing slightly better than their European peers, savers here remained at a disadvantage.
The average rate offered on deposits in Ireland stood at 0.14% in June, compared to the euro zone average of 0.28%.
Irish customers who put savings into longer-term deposit accounts secured an average rate of 1.86% in June, compared to the euro area average of 2.09%.
