Homeowners face 1% hike in mortgage interest rates

HOMEOWNERS could be hit by mortgage increases as soon as this month as experts predict a 1% hike and an end to fixed-rate loans.

The Irish Mortgage Brokers expect banks to push up interest rates by another 1% this year. Any move would add €1,280 a year to a €200,000, 25-year loan. They said rate increases may start this month.

Operations manager with the Irish Mortgage Brokers, Karl Deeter, said: “In short, 2011 is likely to be a washout in the Irish mortgage market, lending will be restricted and only done at higher margins.