The cost of home loans is set to climb again following the European Central Bank’s seventh interest rate hike in less than a year prompting the Taoiseach Leo Varadkar to suggest mortgage interest relief is under consideration for the next Budget. The European Central Bank raised its interest rates by 0.25 per cent on Thursday as it continues to try bring euro zone inflation under control. The widely anticipated rate increase takes the key ECB rate to 3.75 per cent and will add hundreds of euro on to the annual cost of a tracker mortgage. He said that “any decision on reintroducing mortgage interest relief would have to be considered as part of the budget in October. Acknowledging the risk, the Minister for Finance Michael McGrath said there was a “concern” that rising interest rates could lead to an increase in mortgage arrears.

Source: The Irish Times May 05, 2023 09:47 UTC