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Dublin: 9 °C Thursday 24 October, 2019

Irish people easily have the worst mortgage debts in the eurozone

CSO figures also revealed that young people are carrying too much debt.

Image: Shutterstock/luxorphoto

IRISH MORTGAGE HOLDERS are carrying the highest mortgage debt ratio in the euro zone – relative to the value of their homes.

According to figures from the Central Statistics Office - the median ratio for owner-occupier mortgage holders in Ireland is nearly twice the eurozone average.

The middle loan-to-value (median) ration for Irish mortgages was 73% compared to the euro zone average of 37%.

The Netherlands is the next-highest country after Ireland – coming in at 52%.

The survey found that while 70% of Irish households own their own home – just 34% still had money owing on their mortgage debt in 2013.

Young people carrying too much debt

The first Household Finance and Consumption Survey found that Dublin has the lowest rate of home ownership but the second-highest number of houses in debt.

Figures released by the Bank and the CSO also found that young people in the 30-34 age group are carrying too much debt.

Just over 57% of households with people aged between 35 and 44 had a mortgage compared to only 3% of households for people aged 65 or older.

The median value of the household main residence, for those who own their homes, is €150,000. However, the report is based on data collected at the end of 2013 and property values have appreciated somewhat since then.

This week the Central Bank published new rules on mortgage lending - setting out a maximum amount of 3.5 times a person’s income.

Read: Going up: Irish property prices rose by 16.3% in 2014>

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