Homeowner headache: ECB refuses to rule out interest hike as EBS raises rate

AS yet another Irish financial institution announced a mortgage interest rate hike, there appears to be no lifeline on the horizon from Europe with the European Central Bank refusing to rule out further interest rate hikes this year.

EBS, which has been nationalised and merged into AIB, is to increase its standard variable rate by 0.25%. The new rate of 4.93% — or 5.1% APR — is effective from October 1.

The lender said its average standard variable rate loan is €90,120, which will mean average monthly payment increases of about €12. EBS has 48,000 customers on standard variable rate mortgages.