The Irish Brokers Association call on banks to reduce mortgage rates to promote a competitive market for new mortgages.
“Lower rates mean more affordable repayments and greater spending power in the rest of the economy,” the association’s CEO Ciaran Phelan stated.
It is thought that overly extended mortgage holders will have a detrimental impact on the economy as a whole and that financial institutions have a responsibility to ensure that this does not happen.
Central Bank figures showed that new mortgage rates in Ireland are higher than the euro zone average.
KBC Bank Ireland has announced a range of decreases to its fixed rate mortgages for new customers who are owner occupiers.
The new rates came into effect 12 August 2014.