How rising interest rates will impact mortgages - Newstalk

Image audioHow rising interest rates will impact mortgages - Newstalk

The European Central Bank (ECB) has announced another interest rate increase - the third this year - that will impact mortgage holders in Ireland.

Daragh Cassidy, Head of Communications at, appeared on Newstalk to discuss the interest rate hike and outline what options people on a variable or tracker rate have.

Take a look at the key points discussed in the interview below, or listen back to the interview above.

Main points 

  • Before the hike, interest rates stood at 1.25%. At the start of the year, they were at 0%. 
  • The ECB is increasing rates to 2%, which will impact both tracker customers and variable rate customers here in Ireland. 
  • This is an increase of 0.75%. 
  • While historically, this increase isn’t too steep, it’s coming at a very bad time when we’re in the midst of a cost of living crisis. 
  • To put that into perspective, if interest rates go up to 2% and you’re paying a 1% margin on your tracker, you’d be paying an extra €170 or €180 per month on your mortgage repayments if you had €200,000 remaining on your mortgage. 
  • It’s likely rates will increase again when the ECB meets in December.

What should people do?

  • If you’re on a tracker and you’re paying a margin of 1% or less, you’re probably better off sticking with the tracker. You should get advice from a broker or financial adviser. 
  • If your margin is higher, you may be better off locking into a fixed rate while they’re still available.
  • If you do look to switch mortgages, you could be waiting several weeks.
  • Sometimes you don’t even need to switch lenders to get a better rate. You can contact your current lender and ask what rates are available.

Are you looking to switch? 

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