The thick neck of the Central Bank

[Brendan Burgess]

They have published their MFI figures for October

The interest rate on new loan agreements to households for house purchase, with either a floating rate or initial rate fixation of up to one year, was 3.35 per cent at end-October 2014, representing a 7 basis point decrease from the end-September rate. The corresponding interest rate at end-October for the euro area was 92 basis points lower at 2.43 per cent. Loans in this category accounted for 89 per cent of all new mortgage business in the domestic market over the past year. In contrast, floating rate loans in the euro area accounted for 27 per cent of new mortgage business over the same period.

This really is a disgrace. The Governor has acknowledged that these figures are misleading The Central Bank says the average SVR is 4.51%

But the Central Bank continues to publish this information without any prominent caveat that they include tracker mortgages as new business.

 

[kmick]

Anyone applying for a new mortgage will know the true rates. It is truly remarkable though that the Central Bank will distort information like this. Just goes to prove you need to do your own research.

 

[cormacol]

It's not that surprising - although I'm surprise that anyone cares hugely.as you say, everyone knows what the rates are