ECB signals more interest rate rises to come.
The ECB has sent more signals that interest rates will continue to rise. This will have a direct effect on tracker mortgages and fixed rate mortgages and probably variable rates also.
If the ECB plan works and inflation falls back to the target rate of 2%, interest rates will fall, but it could take a few years for this to happen. The awful war in Ukraine is one of the main contributing factors to inflationary pressures.
Tracker mortgage holders in particular are impacted by rising ECB base rates, because their mortgage is priced at a margin over ECB rate. Many tracker rate mortgage holders will see their rates moving to between 4.5% and 5% in the near future.
These tracker rate holders should now consider fixing long term if they can get an attractive deal from their lender or through us with another lender.