Call us now for a Free Consultation: 059 9151932

Syndicated News

Slight increase in average house loan rate in June

The average interest rate on outstanding loans for house purchases stood at 2.92% at the end of June.

That was an increase of 4 basis points, or 0.04%, on May’s rate.

The increase came despite a reduction in the ECB base rate to 0.5% from 0.75% in May.

The corresponding rate for all credit institutions in the euro area was 3.43% at the end of June, which represented a fall of 0.33% since June 2012.

The average rate has not declined here over the past year mainly because the main banks have not been passing on ECB rate reductions to variable rate customers and in some cases have been raising them.

The lower average rate in Ireland is mainly due to the high incidence of tracker mortgages here.

Rates on new business loans to non-financial corporations decreased by 0.76% over the month of June to 2.57%.

The average interest rate on outstanding household deposits declined for the fourteenth month in a row to 2.64%.

Other Central Bank figures today showed that banks’ reliance on funding from the European Central Bank fell by 5% in July from a month earlier. The amount of outstanding loans dropped to €43.6 billion.

The banks have trimmed their day-to-day dependence on ECB funding from a high of €187 billion in February 2011 by shrinking their balance sheets and making a tentative return to capital markets.

< Back to Syndicated News