Mortgage madness: ECB interest rate hike will be 'the first of many’

The European Central bank yesterday increased its rates by 0.5% - the first hike it has announced in 11 years.The change will affect mortgage holders on tracker rates and it will be up to the banks to decide whether to apply the changes to standard variable rates.So far, Permanent TSB and Bank of Ireland have said theyThe ECB is hiking the rates in a bid to tackle runaway inflation, which currently sits at just over 8.5% in Europe and 9% in Ireland.

“Yesterday’s announcement may be a little bit sooner than people thought it would occur, but it absolutely needed to happen,” he said. “Inflation is running rife; Europe has been very late to respond to this as they are often late to respond to any kind of financial crisis, so people can expect more of the same in the coming months.”Mr Deeter said people who have been on trackers have seen their rates “go down and stay down” for the past 14 year.

"This will be the first time they experience an uplift and the effect will be about €25 more per €100,00 borrowed," he said. Meanwhile, Social Justice Ireland is urging the Government to do more to protect vulnerable households – warning that one-in-20 mortgage holders were living in poverty last year.The body said the interest rate increases could have a dire impact, particularly in light of other cost of living increases.The ECB aims to pull inflation back to around 2% and has already signalled plans to increase rates once again in September.

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Tracker mortgage rates to rise after ECB hike interest rates by 0.5%Both Permanent TSB and Bank of Ireland have confirmed that variable rate mortgages will not be impacted by the ECB interest rate hike
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Bank of Ireland raises tracker mortgage and deposit rates following ECB interest rate increaseAll tracker mortgage rates will increase by 0.5 per cent, in line with rate hikes confirmed by the European Central Bank, while negative interest rates applied to customer accounts will end MichealMartinTD LeoVaradkar PearseDoherty MaryLouMcDonald What’s the government’s stance on this guys, are you gonna back “THE BRAVE “ now? A tax free month of earnings? Abolishing the USC? What say the you? Are you gonna reply? Let’s get Paddy Power to take bets!! Irish banks are great at the game of monopoly. Why can’t Irish consumers get reflective rates like rest of EU. We are paying 2 x times on average vs ecb. 2100 euro per year on average more!! interestrates
Source: businessposthq - 🏆 8. / 71 Read more »