European Central Bank raise rates again
The ECB today announced a further rise in interest rates by.25% .This follows on from a similar rise in April of this year. The reason for the rise is to help control Inflation across The move was well flagged but comes at a time when the currency is under severe pressure due to the region's debt crisis.
The base rate is now 1.5% which is still low by historic standards.
- The rate will increase tracker mortgage repayments by approx €13 per month per €100,000 of borrowings.
- Variable rate mortgages are also expected to rise by a similar amount.
- Existing fixed rate holders will not be affected.
What can be done to combat rising mortgage rates?
- The most obvious tool is to fix your rate. Check with your bank what fixed rates are on offer.
- You may be able to switch to a cheaper lender provided your mortgage is 80% or less of the value of your home,
- For individuals with a loan to value of 50% or less, there is a 3.7% (apr4.6%) 5 year fixed rate available
- Look at ways of saving on other costs, both household and financial