Boom buyers face €200-a-month mortgage hike
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.