First-time buyers fail stress tests ahead of further ECB rate hikes

Market analysts expect ECB interest rates to peak at over 3%, with some predicting a peak of 3.25% by the middle of next year.

Retail banks, which have not yet raised their rates yet, are expected to do so by the end of the year. Picture: Denis Minihane

Some first-time buyers are already failing mortgage stress tests ahead of further European Central Bank (ECB) interest rate hikes, said experts.

These first-time buyers are using non-bank lenders, which have raised their rates since the ECB hikes.