First-time buyers paying some of the highest interest rates in Europe– Pearse Doherty TD
11 April 2025
Sinn Féin spokesperson on Finance, Pearse Doherty TD, has said that some of the highest interest rates in Europe are unjustifiable given the scale of bank profits being announced.
The Donegal TD was speaking in response to data published by the Central Bank that shows Ireland has the 5th highest interest rate on new mortgage agreements in the Euro Area.
Teachta Doherty said:
“We now have the 5th highest interest rates for people looking to take out a mortgage out of 21 countries in the Eurozone. We have climbed 2 places over the last year. This is at a time when our banks are boasting billions in profits.
“First-time buyers are already facing huge difficulty finding a home they can afford. This puts further pressure on people who are already handing over a substantial share of their income in mortgage repayments. It also feeds into the wider cost of living crisis many households are facing.
“Some inflation is beyond our control, but other increases are the result of corporations boosting profit margins while the government stands idly by. The government needs to act where and when it can, to protect people from relentless price hikes.
“Government must ensure that banks pass on lower ECB interest rates to customers, rather than keeping interest rates high for first-time buyers and pocketing the difference.
“The government’s answer has been to sit back and hope that greater levels of competition will drive down prices – this amounts to a do-nothing approach and is simply not enough.
They need to recognise the impact this is having on people and their day to day lives. When markets fail to deliver adequate competition and fair prices, we need to see greater levels of intervention.
“Once the government finally allows for the formation of Oireachtas Committees, Sinn Féin will chair the Finance Committee. We will use this important position to hold banks and government to account for these unjustifiably high interest rates.”
