Mortgage holders to ‘face five rate hikes’

MORTGAGE holders could see their repayments soar by the end of next year — Citi Bank is expecting five interest rate increases from the European Central Bank (ECB) between now and then.

If the ECB hikes rates from the current level of 1.25% to an expected 2.5% this would mean an extra monthly repayment of €225 on a €300,000 mortgage.

Citi economists expect the next interest rate hike in July and a further one before the end of the year.