Financial pain for mortgage holders as ECB increases interest rates by 0.5%

Variable rate mortgage customers are expected to be one of the key groups impacted by the rate hike. 

This rate will increase over time to 0.75%. The rate could reach 2.4% in 2024, but inflation is expected to fall back by then. 

The European Central Bank has raised interest rates by 0.5% to combat surging inflation, which is approximately 9% across the euro area. 

This is the first time in 11 years that the ECB has hiked its interest rate.