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Irish mortgage rates have seen a sudden drop in the month of February

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Mortgage rates in Ireland experienced a slight dip in February, as indicated by the newest data from the Central Bank of Ireland. The average rate for a new home loan was 2.92%, lower than January’s rate of 2.93%. Ireland continues with the third lowest mortgage rates in the euro zone, and was one of the few nations to witness a decrease.

The euro zone average, in comparison, rose to 3.33%, almost three times what it was around a year and a half ago. Bonkers.ie’s Daragh Cassidy commented on the figures, indicating that the main banks have been slow in passing on the increased European Central Bank rates to mortgage holders.

Since July of last year, the ECB has raised rates by 3.5%. However, the main banks have only increased their fixed rates by 1.5-2%, and variable rates have stayed largely the same. This generosity has primarily been funded by savers, as savings rates in Ireland remain dismal. Permanent TSB’s best rate is a mere 1.5%, and Bank of Ireland offers a maximum of 0.75%. In Europe, though, 3% deposit rates are now widely available.

In other words, savers are essentially covering the costs of mortgage holders. Whether this is a valid situation or not is up to individual opinion, depending on whether one is a mortgage holder or a saver.

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Eric
Eric
Eric is a talented writer who has worked as a journalist for 8 years now. With a wealth of experience in journalism, he brings a unique perspective to his work. Eric is known for his ability to write about complex topics in a way that is easy for readers to understand. His articles are insightful and thought-provoking, and he always strives to provide balanced coverage of the news. Eric is dedicated to his craft and spends countless hours researching and fact-checking his stories. When he's not writing, Eric enjoys hiking, reading, and spending time with his family.

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