The average interest rate on a new mortgage in Ireland rose for the third straight month in March to reach the highest level since 2017.
That’s according to new figures from the Central Bank which show Ireland had an average interest rate of 4.31% March - the sixth highest rate in the euro zone, up one place from February.
The figures also show that the average euro zone mortgage interest rate fell for the fourth month in a row to 3.84%. This means that the gap between Irish and euro zone rates is now at its widest level since July 2022.
Mortgage interest rates varied across the currency bloc from as low as 1.96% in Malta to as high as 6.16% in Latvia.
The Central Bank said that the total volume of new mortgage agreements in March fell by 2% from February to €630m. This marked an annual decrease of 14%.
It also noted that renegotiated mortgages totalled €145m in March compared to €174m recorded in the previous month.
Meanwhile, separate figures from Banking and Payments Federation Ireland (BPFI) show that the number of green loans drawn down last year jumped over 90% when compared to 2022.
A green loan includes green car or auto finance and green home improvement loans.
The data from BPFI shows that 4,266 such loans were drawn down last year. The value of these loans more than doubled to €95 million.
Over the past two years, almost 6,500 green loans have been issued by BPFI members.
"Lenders are well placed to support the rollout of the €500 million Home Energy Upgrade Loan Scheme that was launched last month and will be managed by the Strategic Banking Corporation of Ireland (SBCI)," said Brian Hayes, Chief Executive, BPFI.
The scheme enables homeowners who receive home energy upgrade grants to cover the rest of the costs with low-interest loans.
Homeowners can now borrow up to €75,000 at significantly lower interest rates to retrofit their homes.
"These loans, in addition to grant support from the Sustainable Energy Authority of Ireland (SEAI), should help lower the financial barriers encountered by homeowners who want to make their home more energy efficient, making home energy upgrades more accessible and affordable," Mr Hayes said.
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