SYS Mortgages Manager Helen Slattery advises on the European Central Banks’ most recent hike in its rates.
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Mortgage Brokers Input
On Thursday 15th June, the European Central Bank (ECB) increased its lending rate for the 8th time since last July. This latest increase was 0.25% which brings the ECB rate to 4%.
As you are aware, the increases have been implemented as a method to cool inflation which is now at 5.4% in Ireland and 6.1% in the eurozone. There are indications that further increases are likely as Christine Lagarde wants to bring inflation down to 2%
Mortgage Holders – What To Expect
So, what can mortgage holders expect following another increase? You can expect:
- If you have a mortgage of €250k over a 25-year term this increase of 0.25% would result in a monthly increase of €35
As an example, if you had a mortgage of €250k over a term of 25 years and your fixed rate at 2.20% is now expiring your monthly repayment would jump from €1084 to €1347 – assuming new fixed rate at 4.20%.
Mortgage Fixed Rate
The average standard fixed rate for the main bank lenders is currently in the region of 4.1% to 4.7%. Green rates are available from 3.40%. I expect that fixed rates may increase again as most lenders didn’t react to the last 0.25% rate increase. The higher cost of living and increasing interest rates make it more difficult to get mortgages approved.
Your Mortgage Brokers – SYS Group
Other areas of expertise that Helen can advise on are; nonresident mortgages, self-builds, switcher mortgages and more.
