After last week’s ECB rate rise – many borrowers will soon start to see their repayments rise for the first time since July 2008 .
ECB rates dropped from 4.25% in July 2008 down to a low of 1% in May 2009 . The latest rise will bring the ECB rate up to 1.25%.
See ECB Rate History here
In Ireland there are about around 200,000 tracker mortgages that will now be increased – after staying the same since May 2009. Some Variable rate mortgages may also be increased.
A 0.25% rate rise works out at an increase of about €15 a month for every €100,000 borrowed. So – a tracker mortgage of €300,000 will see repayments go up by €45 .
Bank of Ireland and ICS have increased their standard variable rates from April 15. They increased tracker rates from Wednesday April 13.
PTSB will increase its tracker mortgage rates by 0.25% from April 16 and will increase variable rates from May 18. (Fixed rates were raised recently anyway)
National Irish Bank has said it will not be increasing its variable mortgage rate from the current 3.4% following the ECB announcement.
See our lists of the lowest mortgage rates.