Irish Examiner: Rate hikes loom for tracker mortgages

We were featured in a story in today’s Examiner by Niamh Hennessy

TRACKER mortgage holders could be hit with up to five interest rate hikes by the end of next year — adding €150 a month to a €200,000 mortgage.

Economists are expecting the European Central Bank (ECB) to hike rates by the end of this year, with some saying the first increase could come in September. A lot will depend on the state of the economy but once the ECB begin raising interest rates then they usually hike by 0.25% every three months.

Ulster Bank chief economist, Simon Barry said the European economy is in recovery mode and any moves on interest rates will depend on how the future direction of the economy. “A rate hike could come later this year or even sooner,” he said.

ECB president, Jean Claude Trichet usually signals a hike is on the way a few months beforehand and the words to look out for, according to experts is “strong vigilance”.

Operations manager with the Irish Mortgage Brokers, Karl Deeter said the increase in rates will bring pain to a lot of people who have been exempt from the variable rate hikes.

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