Interest rate increase to add €30 per month on €250,000 mortgage

Today’s ECB interest rate increase of 0.25%, the fifth increase in 11 months, will make a big difference to many people’s monthly mortgage repayments, the financial regulator said today.

“If the full increase announced today is passed on to mortgage customers, it will add over €30 a month on a €250,000 20-year mortgage,” said consumer director Mary O’Dea.

“Since last November, monthly repayments on a €250,000 20-year mortgage have increased by over €155 each month. This represents an 11% increase in mortgage repayments.

“For consumers with larger mortgages, the impact will be much more.

“Consumers who are thinking about taking out a new mortgage, particularly first time buyers, may be concerned by this development.”

The increase could be good news for savers however, according to Ms O’Dea.

“People with money on deposit should compare the current interest rate on their savings with those available on the market after the increase and move their funds if they can get a better deal,” she said.