Mortgage payments in the Republic are significantly cheaper than in Britain because of lower interest rates within the euro zone, a study published yesterday shows.

The study by Your Mortgage magazine, which compared the cost of home loans in Britain and the Republic, revealed that a homeowner in Ireland borrowing £100,000 would save a massive £62,450 over 25 years - or £208 a month - compared with a British borrower.

To compile the study the magazine examined five lenders offering home loans in both Britain and the Republic and compared the standard rates they offered on interest-only mortgages over 25 years.

On a £60,000 loan Irish borrowers saved £37,470 over 25 years - £125 a month - while on a £150,000 loan the saving was a massive £93,675 - £312 a month.

The average loan rate of the lenders in the UK was 7.85 per cent, compared with 5.37 per cent in the Irish Republic.