Domestic banks offer the cheapest mortgages in Europe but personal loan and credit card rates are among the most expensive according to a recent survey.
Mortgages: Last year, Irish mortgage interest rates averaged 4.2 per cent compared to the European average of 5.1 per cent.
For the first two months of this year, Irish rates were lowest, averaging 4.5 per cent against the European average of 5.9 per cent.
Irish rates, which dropped from a high of 7 per cent during the previous five years, are below those offered by competitors in France, Germany, Italy, the Netherlands, Portugal, Spain and Britain. Germany was the most expensive market at 6.4 per cent on average.
The survey was commissioned by Bank of Ireland and conducted by an independent research company, Strategic Solutions. It compares the fees and charges for personal banking products across a total of eight markets. Some 29 major banking groups were surveyed.
In 1995, the mortgage margin for Irish lenders halved from 1.8 per cent to 0.9 per cent and the margin has remained almost level since then. It currently stands at 1 per cent making it the second lowest in Europe.
The study concluded: "The Irish mortgage market has emerged as a very competitive one over the last seven years, which is encouraging given the rise in house prices experienced over the same period."
Personal loans: The Republic is the third most expensive market for personal loans. The average personal loan APR here is almost 6.9 per cent compared to the European average of 6.1 APR. This is based on a personal loan of £3,000 or €3,810.
Personal loan rates are highest in Britain at 8.9 APR and lowest in France at 3.46 APR.
Credit Cards: The Republic ranked second highest in terms of credit card charges with an average APR of 19.37 last year. Spain tops the table with an average 22.2 APR. France is at the bottom delivering 11.58 APR on average.
The study notes that approximately 55 per cent of Irish credit-card holders clear their balances each month and therefore do not incur interest charges.
The Republic performs better than the European average in six out of 10 product categories. According to the consultants: "The only product categories that may provide opportunities for further pricing reductions in the Irish market are personal loans and credit cards, although interest rates on credit cards may not reduce further until market penetration levels in Ireland rise to those of most other European countries."
Bank of Ireland plans to expand the survey to all countries in the euro zone in the future.
