Experts predict 1% rise in mortgages this year

Experts are predicting further mortgage hikes for homeowners.

The company, Irish Mortgage Brokers is expecting a rise of 1% this year.

Mortgage hikes are on the way and sooner rather than later according to Irish Mortgage Brokers.

They say banks are likely to push rates up by 1% this year which would leave variable rates at about 5%.

Such a hike could come as early as this month and would add nearly €1,300 a year to a €200,000, 25-year loan.

The brokers say fixed rate loans may also be restricted or temporarily removed making 2011 a washout in the Irish mortgage market.

They also predict a rise in repossessions and that house prices will continue to fall.