Mortgage holders in Ireland will face an additional cost blow over the coming months as the European Central Bank opted to hike their interest rates once again.
The increase was a mere 0.5% but will cost the average tracker mortgage holder around €1,650 extra each year.
This is based on the average tracker loan with an outstanding €81,300 according to Mark Coan of money guide Moneysherpa.ie.
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This marks the sixth European Central Bank hike in a nine-month period and will see standard mortgages increase by around €6,000 extra each year.
In response to this, Sinn Fein’s Pearse Doherty has urged the Government to introduce targeted mortgage interest relief to support people amid the current cost of living crisis.
He said: "This is the sixth rate hike since July 2022. This further rate hike will immediately impact more than 250,000 borrowers who have seen their monthly repayments increase by hundreds of euros since June.
"It will also hit the pockets of thousands of borrowers whose mortgages were sold to vulture funds without their consent."
He we on to say that those who are struggling with the cost of living crisis will now be hit with these extra costs.
"Mortgage-holders will be paying thousands of euros more in interest this year – households that are already struggling under the cost of living crisis," he said.
"Others will see their interest rates increase in the coming period.
"Already, Irish mortgage holders are charged interest rates that are 50 percent higher than the European average.
"In the grip of a cost of living crisis, it is now time to introduce targeted and temporary mortgage interest relief to cushion the blow of these rising interest costs – this relief could absorb a portion of these interest costs".
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