Borrowers are being hit with a 10th interest rate rise by the European Central Bank in a move that is set to suck billions of euro out of household budgets. Higher interest rates have wreaked havoc with existing mortgage holders and house hunters alike, according to head of credit at online broker MyMortgages.ie Joey Sheahan. Each 0.25 percentage point rise in mortgage rates adds around €156 to the annual repayments on each €100,000 borrowed over 25 years. Higher interest rates have also restricted how much house-hunters can borrow. Borrowers who took out a fixed rate over the past three or four years will likely be paying a rate of between 2pc and 3.5pc.

Source: Irish Independent September 14, 2023 12:30 UTC