Mortgage repayments highest since 2009

 In Interest rates, Mortgage lending, News

The monthly interest repayments on mortgages has reached its highest level since 2009 according to the National Statistics Institute INE.

In May the average monthly repayment stood at €352, up €11 on April. Of the total monthly amount repayable, €179 (51%) is interest while 49% is the capital repayment. By way of comparison, in May 2022 the interest on the average monthly mortgage repayment was 16% of the average total monthly repayment which was €260.
This trend is particularly evident for home loans with mortgages of €384 per month – interest payments also at their highest level since February, 2009. Of this amount, €198 (51%) is paid just for interest and €187 (49%) is the monthly pay down on the capital.
As for mortgages contracted over the past three months, the average mortgage repayment increased by €1 in May compared to April to €591 or €200 more than in the same month in 2022. In this case the interest made up the majority of the monthly repayment at €396 (67%) while the capital pay down per month was €195 (33%).
Overall, the implicit interest on mortgages increased in May to 3.398% – the highest value since June 2009, showing an increase of 28.8 base points on April. (3.11%)
On new contracts signed over the past three months, (since March), the interest rate has risen to 3.882% in May – the highest value since August 2012, an increase of 10.7 base points on April.