ECB Rate Increased to 1.5%

As expected the ECB rate rose today to 1.5% . The increase from 1.25% was announced today and will take effect  later in July.
In  the UK  the Bank of England kept their rate at 0.5% – and the discrepancy in rates is expected to result in a strengthening of the Euro against the Pound. The Euro had already been performing well against Sterling in recent weeks anyway.  See more about Exchange  Rates here.

Mortgages – Most people who bought houses since 2005 will be getting mortgage interest relief which will cushion them against some of  interest rate rise.
Eg. For a couple getting mortgage tax relief at the maximum rate – with a  tracker mortgage of 200,000 . They will see repayments increase by about  €18 a month from €876 to €894.

For those not getting tax relief – repayments will increase by about €15 a month for every €100,000 borrowed.