Mortgage rates may rise 1% by year end

MORTGAGE rates could rise by an additional 1% by the end of the year, according to brokers.

Brokers have warned that banks could move to push up rates before the European Central Bank (ECB) does so towards the end of the year.

Finance Minister Brian Lenihan said yesterday that Permanent TSB’s decision to raise its standard variable mortgage interest rate by 0.5% last week reflects commercial realities.