ECB Rate Hike Hits Irish Tracker Mortgage Holders Hard

The European Central Bank (ECB) is expected to raise interest rates by 0.25 percentage points, affecting over 100,000 people who hold tracker mortgages.

This move will lead to an increase in repayments for these individuals, with a hike of around €14 for every €100,000 owed.

Rachel McGovern of Brokers Ireland warned that if the negativity continues, we could see a further rate increase before year-end.

The managing director of Finance Ireland, Conor McGowan, stated that the latest hike has been driven largely by inflationary pressures and there is no indication yet as to whether lenders will absorb this rate increase or adjust the rates available to borrowers.

McGowan also noted that two or three consecutive increases on that scale could add anywhere between €1,000 to €2,000 per year to mortgage costs for many households.