The Great Irish Mortgage Rip-off: Interest rates in Ireland far surpass the average across the Euro zone

key-2323278_640

If you are lucky (or unlucky, depending on your point of view) to have a mortgage, a large chunk of your monthly income is probably being gobbled up by it, preventing you from living the life you want while funding a bank’s speculation game.

The word mortgage literally means ‘death pledge’, and such device is designed to keep people in hock to a financial institution for the best part of their lives.

Mortgages are big business for these institutions, and in Ireland, they make an extra buck or two by keeping interest rates artificially higher than the average across the Euro zone.

Here, you can expect to pay an average of 3.5% variable rate, whereas in most of Europe, it stands at 1.83%, on average.

Financial gurus here say that the reason for such disparity is the higher funding costs in Ireland, and that the volatility of the Irish market makes lending a much riskier proposition.

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s