“The Financial Impact of Seven Successive Interest Rate Increases from the European Central Bank: How Tracker Mortgage Holders and Other Borrowers Can Save Money Despite Rising Rates”

The recent interest rate increases by the European Central Bank have had a significant financial impact on many people. With inflation still high, the bank’s president has warned that more rate increases are coming, meaning more financial pain for borrowers. Tracker mortgage holders in particular have been hit hard, with the situation now reversed from just a year ago. Other mortgage holders and first-time buyers are not immune to the sting of rate rises either. While some value can still be found for those switching to fixed rates, much of it may disappear in the coming weeks. Meanwhile, variable rates have remained largely untouched by major banks, leading some to wonder if they are more interested in their own bottom line than their customers’ well-being. Irish banks may be considering putting their deposit money into bank accounts in Europe, where they can receive a higher interest rate, rather than passing on the increases to variable rate mortgage holders and attracting unwanted political attention. For many borrowers, the latest interest rate hike may be the final straw, and they will be hoping that any further rate increases will be less severe.