Interest rates have nothing whatsoever to do with mortgage defaults or mortgages becoming 'non-performing'. in an economy like Ireland's interest rates domestically are set at base level anyway by international economics and very little to do with Ireland's internal economy.100%. People b1tch and moan about the high interest rates in Irish banks but fail to realise the reason for those high interest rates - defaulters like Wallace and the politicians who held the banks back for so many years (still doing it to an extent I believe) from doing their business. I wonder how quickly the banks would have recovered if allowed to repossess after three consecutive missed payments as per the usual terms and conditions.
We lost what little control we had over interest rates when we joined the Euro and became subject to the politics at that level (ie Germany).