Thursday 19 October 2017

Boom buyers face €200-a-month mortgage hike

For those in their 40s with a tracker, monthly repayments would jump by €120 to almost €900 (Stock photo)
For those in their 40s with a tracker, monthly repayments would jump by €120 to almost €900 (Stock photo)
Charlie Weston

Charlie Weston

Boom-time borrowers are highly vulnerable to a rise in European interest rates, particularly those in their 30s, a new Central Bank study has found.

A rise of 2pc in eurozone rates would push up repayments on a mortgage by almost €200 a month, putting huge pressure on their incomes.

If the European Central Bank (ECB) rate hits 2pc, a typical boom-time tracker borrower in their 30s would see repayments shoot up from €760 a month to €932, the study found - a monthly rise of €170.

For those in their 40s with a tracker, monthly repayments would jump by €120 to almost €900.

The study found that the higher mortgage repayments would dampen spending by the households affected.

ECB rates could start rising early next year.

Irish Independent

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