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Families hit by mortgage pain

THOUSANDS of families were today facing a €100 hike in their mortgage repayments next month.

A string of lenders are set to announce increases on interest rates within weeks, with up to 300,000 hit by the hikes by the end of August.

Families face paying an extra €100 a month in repayments on a typical €300,000 mortgage.

The move will put extra pressure on family finances as people struggle to pay their mortgages in the face of pay cuts and levies on their take-home pay.

The move follows EBS's announcement last Friday that standard variable rates for new and existing customers will jump by 0.6pc in early August.

Now AIB, Bank of Ireland, Permanent TSB and Irish Nationwide are expected to raise their rates by around 0.5pc, with signs that most will introduce increases by the end of next month.

Permanent TSB and EBS have now upped their variable mortgage rates twice in the past year -- pushing up rates by 1pc.

Most other lenders have only moved once and are now preparing to act quickly to push up their variable rates again.

Once the new round of mortgage interest rate hikes is completed, the bad news is that lenders are set to increase them again by the end of the year. A family with a €300,000 mortgage would see monthly repayments shooting up from €1,227 at the start of this year to €1,470 by December.