Mortgage holders and business hit by ECB rate rise

THE average homeowner will have to fork out an extra week’s wages to cover soaring mortgage costs after the European Central Bank (ECB) increased rates by another 0.25%.

The rise brings interest rates to a seven-year high of 4.25%, though there are indications this will be the only hike this year.

A typical mortgage holder with a 30-year, €300,000 variable rate mortgage will now pay €1,656 each month — an increase of €46 a month. The annual increase is €550 — just more than the average weekly industrial wage.