Paying price of excessive borrowing

THE one thing we can be sure of, following the seventh rise in interest rates in 15 months, is that the latest increase will immediately be passed on to struggling mortgage holders and borrowers up and down the country.

Though the European Central Bank rise to 3.75% was long expected, in drip-by-drip process akin to Chinese water torture, it means that €107 has been added to repayments on every €100,000 borrowed over the past 15 months.

While the ECB is right to control inflation in theeurozone, the impact on home owners in Ireland is particularly severe. Borrowers who paid over the top in a housing market where prices have been crazy, are now being squeezed.

With another rise expected in June, the situation will get even worse.

Mortgage companies should desist from giving out loans that many will find nigh impossible to repay.