Mortgages.ie - Mortgages and Mortgage Protection Insurance

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

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