Yet more pain for mortgage holders as rate hikes set to keep coming

When added to the seven ECB increases absorbed since last summer, this would mean tracker mortgage holders who were paying rates of between 0.5 and 1.5 per cent last year would be paying between 4.75 and 5.75 per cent by the end of August, leaving many of that cohort worse off by in excess of €5,000 annually.

“In my view what’s likely to happen next week is that the ECB is likely to move interest rates up again,” Mr Makhlouf told journalists at the publication of the regulator’s semi-annual Financial Stability Review. He said a further rate hike in July was also “probable” on the basis of current price data, noting “underlying price pressures remain strong”.

“Whatever the outlook, I think it could be 2025 until rates fall back. Markets seems to think rates may start falling as soon as early next year which I don’t think will happen. Inflation is still way too high,” Mr Cassidy said.

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