Mortgage Interest Rates have taken another hike up to a new base rate of 4% as of two weeks ago. This will mean that all mortgages on a variable rate and all mortgages on a tracker rate will now cost more per month than they did previously. The difference will be about €21 per hundred thousand borrowed.
Given that the average house price in dublin is now over four hundred thousand that equates to mortgages being – for first time buyers in particular who would not have a low loan to value – about €80 more per month.
This is the eighth interest rate rise since december of 2005 so mortgages are getting more expensive almost every quarter. For some people this is adding up to an extra €650 per month compared to what they were paying for their mortgage this time two years ago.
Mortgages, much like any other form of credit such as personal loans or credit cards are affected every time the ECB (european base rate) goes up or down. Property purchases were much more affordable when …