Mortgage holders braced for ECB interest rate rise
Mortgage holders are bracing themselves for higher home loan repayments amid speculation that the European Central Bank will increase interest rates today.
It comes as a meeting of EU finance ministers in Hungary is set to be dominated by a request from Portugal for a financial bailout.
Finance Ministers are also due to discuss the cost of the Irish bailout loans.
The European Central Bank has not increased interest rates since 2008, but today it looks set to change course.
The bank is concerned about the rising costs of goods and services in the Euro zone and it is thought that a quarter percentage point rate hike is now likely.
The move, if it happens, will pile further pressure on struggling home-owners in Ireland who would be hit with extra mortgage repayments, and may increase the risk of default.
The news comes as EU finance ministers meet in Budapest.
The meeting was due to discuss the cost of the Irish bailout, but its now expected to be dominated by the growing crisis in Portugal.
The Country's caretaker government has requested financial assistance from the EU.
It is estimated that the country may need between âŹ60bn to 80bn to fund day to day spending.
