Fallout for lowest income households from mortgage rate hikes 'matter of concern'

CSO figures show median debt service ratio for households with the lowest gross incomes increased sharply as interest rates rose

Christine Lagarde, president of the European Central Bank (ECB): The ECB has its December meeting on Thursday Picture: Arne Dedert/dpa via AP

Official figures showing a sharp rise in costs of paying mortgages are worrying as they suggest the lowest income households face the worst fallout on their finances, Paul Joyce, senior policy adviser at the Free Legal Advice Centres, or Flac, has warned.  

The Central Statistics Office analysis through to the end of June showed the median debt service ratio for households with the lowest gross incomes increased sharply, to almost 41% from 32% of their household income, as interest rates rose.