Best fixed rate mortgage rates in Eire are 2.74% for a two-year fix for first-time-buyers with the Halifax – while a two-year fix here costs 4.19% and the buyer has to put down a whacking 40% deposit to get the rate.

The Royal Bank of Scotland charges UK customers 3.09% for a new mortgage, while in Ireland, a similar product attracts a 2.95% interest rate.

Yet, the cost of raising the money on the interbank wholesale money markets is the same for both countries.

Both the Royal Bank of Scotland and Halifax explain this as a matter of competition in the markets – with Irish homebuyers getting lower rates because the rates have to be lower to attract customers.

Another interpretation is that the banks are making more money out of their UK customers because they choose to charge a higher margin here when they could opt to be more competitive and charge lower interest rates.

"Across the first-time buyer ranges available in both the UK and Ireland, there is no direct product comparison available. The length of the product term and the cost of funding are integral in reaching all pricing decisions. These decisions are taken discreetly within their own markets," said a spokesman for the Halifax.

British taxpayers have spent more than £60 billion bailing out the Royal Bank of Scotland  and Lloyds Banking Group, who own the Halifax, leaving the Government with a controlling stake in each.

"It is appalling that British taxpayers’ money appears to be going towards revitalising the Irish housing market rather than helping domestic borrowers.

"Taxpayers did not cough up so that they could then be charged unfair rates while our neighbours in Ireland get a great deal. There is some difference in money market rates, but nowhere near enough to justify charging British people double the Irish rate," said Matthew Elliott, chief executive of the lobby group, The TaxPayers’ Alliance.

The message from the lenders is that they consider borrowers in Ireland a lesser risk than those in the UK, so are prepared to offer them better deals, yet the Irish economy is suffering similar problems to the UK and other European Community countries.

Some other banks and building societies are offering UK mortgage rates closer to those in Ireland – but expect borrowers to put down a much larger deposit to qualify.