Michael Dowling: Sunnier days ahead for mortgage customers as ECB prepares to cut rates

European Central Bank is set to reduce rates this week for the first time since its aggressive campaign of hikes began in July 2022

European Central Bank president Christine Lagarde said in July 2022 that the ECB would raise interest rates 'for as long as it takes to bring inflation back to our target'. Picture: Michael Probst/AP

The great weather over the bank holiday weekend foreshadows better days for mortgage holders as the European Central Bank (ECB) will reduce rates by an expected 0.25% on Thursday, which will reduce the base rate to 4.25%.

This reduction will impact tracker mortgage holders in July. There are 179,000 customers with tracker mortgages who owe €15.4bn and represent 25% of the mortgage market.