The European Central Bank (ECB) is expected to announce a lending rate increase of at least 0.25 percentage points tomorrow, with some experts warning of a possible 0.5 percentage point hike. If this happens, those with tracker and variable rates can expect to pay thousands of additional euros in repayments, while the cost of new fixed rates for new home buyers will rise. A 0.5 percentage point rise would result in an extra €390 payment per year for a typical customer with 11 years remaining on their mortgage. With inflation in the eurozone rising from 6.9% in March to 7% last month, it’s possible that another two rate increases will occur before July, according to market observers. There are around 171,000 Irish tracker mortgage customers who are directly impacted each time the ECB raises rates.
