Cavan and Monaghan tracker mortgage holders are being advised to "hold out for the moment". That's according to Harry Dwyer of Moneycare in Monaghan who says that if inflation comes down, mortgage interest rates will decrease in tandem with that.
Mr Dwyer was speaking to Northern Sound today after AIB and its affiliate Haven increased rates by 0.5% Elsewhere, the European Central Bank (ECB) has introduced five interest hikes since June, and this has added up to €400 a month on a €330,000 mortgage with a further rise next month expected to add €88 more.
Meanwhile, Mr Dwyer says the ECB doesn't want high interest rates and would much rather they were lower. He added that mortgages are going to get more expensive, particularly for those on fixed rates. "There is a reluctance to move heavily on the variable rate at the moment.
"The Banks like AIB and Haven Mortgages have absorbed a lot of these actual hikes up to now but maybe that day is finishing. 95% of people who have a mortgage at the moment are on a fixed rate unless they are on a tracker.
"Whether they keep the tracker or not is an individual case. Each case is different, there are no two cases the same, and I think that the banks have been quite responsible in keeping the variable rate low, he added.
