ECB Rate Hike Spurs Irish Mortgage Rates to Rise Again
The European Central Bank (ECB) has announced another interest rate hike of 0.25 per cent, citing rising inflation and energy prices.
This increase follows a similar move in June, bringing mortgage rates back up after they had been falling.
Trevor Grant, chairman of Irish Mortgage Advisors, notes that competition from lenders, rather than the ECB, is the main influence on home loan rates in Ireland.
However, this change will likely have a significant impact on new-home buyers, as financing costs can more than double the total cost of purchasing a home.
Martina Hennessy, chief executive of doddl.ie, explains that many Irish lenders offer preferential mortgage rates for homes with high energy ratings.
The lowest rate now available starts at 3 per cent from some lenders, although rates vary depending on the lender and the home's energy rating.