Bad news for tracker mortgages as ECB holds interest rate at 0.75%

The decision by the ECB to hold the main interest rate at 0.75% will come as bad news for tracker mortgage holders, although it is highly unlikely it would have made any difference to holders of standard variable rate mortgages.

Over the past few months, the country’s pillar banks have signalled their intention to increase the interest rate they charge on standard variable rate mortgages, despite the ECB cutting its main interest rate by 0.25% to 0.75% in July.

At its results presentation at the end of July, State-owned AIB announced it would increase the interest rate on its standard variable rate mortgage from 3% to 3.5% on Sept 3.