Stephen Hamilton: Mortgage holders to endure more pain in the short term

Another interest rate hike this week could add more than €600 in annual repayments for those on a tracker mortgage

The anticipated rate rise will mean an increase in mortgage repayments of €648 per year on a €200,000 tracker mortgage. Stock picture: iStock 

Mortgage rates have been steadily increasing over the last year as Central banks battle with high inflation. While falling, inflation is still stubbornly high and so another ECB rate increase is on the cards.

The key ECB refinancing rate, which affects tracker mortgages, is currently 3.5% and looks set to rise to 4% this week, and could go as high as 5% in the coming months.