Which Irish mortgage borrowers are most exposed as interest rates rise?

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Smart Money: Focus has been on those with trackers who have seen immediate increases, but the real risk is people coming off low fixed rates in the next few years

There are exceptions. Mortgage broker Michael Dowling of Dowling Financial points to a group who have trackers with a larger margin over the ECB rate, up to 2 percentage points or more in some cases. For these people interest rates are already approaching or have already hit 4 per cent and will likely go higher in 2023.

Borrowers on standard variable rates – typically again an older group with smaller balances – have been advised now for some months to consider moving to fixed rates, which will at very least save money for a few years. While some fixed rate offers are now off the table, it is still worth examining the options, and doing so quickly.In the UK, the sharp jump in mortgage rates has put a focus on those rolling off low fixed rates.

 

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