Michael Dowling: Mortgage costs mount for second hand buyers

Large differences between mortgage repayments for buyers of new and second-hand properties must stop

The European Central Bank. There is evidence that increases are impacting on borrowers’ ability to service their debts.

The European Central Bank has raised interest rates eight times in the last year with its base lending rate now at 4%, with a further 0.25% rise on the cards when it meets later this month.

The central bank met in Lisbon last week and there were mixed messages emanating from the delegates. On one side, ECB president Christine Lagarde and the Belgian governor Pierre Wunsch appeared to be advocating for a further rise in September, while the Italian, Spanish, and Portuguese delegates were more cautious.