ECB Raises Interest Rates – Our Experts Input

SYS Mortgages Manager Helen Slattery advises on the European Central Banks’ most recent hike in its rates.

Mortgage brokers are there to help you on your journey towards securing your keys! Speak with the best mortgage broker in the business today, Helen Slattery.

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.

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