The European Central Bank is to raise its interest rate by 0.5%, which will lead to increases in repayments for anyone with a tracker mortgage.
“This increase of 0.5 per cent is not good news for tracker mortgage holders who will have one month before seeing an increase of €23 per month for every €100,000 owed over a 25-year term. It's likely that variable mortgage rates will also rise in the near future, and anyone on a short-term fixed rate will feel the pinch when they roll out of their lower fixed rates.
“With many aware of imminent rate increases, mortgage switching is at an all-time high as people seek to secure more long-term, low cost and flexible fixed rates. Fixing your mortgage is the only way to have security over rising interest rates.” Permanent TSB confirmed today that it would not be passing the ECB rate increase on to their fixed and variable rate mortgage customers.
KBC confirmed that any direct impact of rate changes triggered by the ECB will be applied, and will communicate changes to customers.