DOUBLE BLOW: Homeowners face two more rate hikes

HOMEOWNERS could be hit with two more interest rate hikes this year if the Government fails to deliver on a commitment to stop banks passing on rises to mortgage holders.

In the Programme for Government agreed last month, the Coalition promised that bailed-out banks would have to cut their costs enough to absorb a 0.25% increase in interest rates.

They were urged to clarify this policy when the European Central Bank (ECB) increased rates by 0.25% yesterday.