Tracker mortgage holders ‘taken the brunt’ of ECB rate rises, but others being ‘drawn into the firing line’

It is not just tracker mortgage holders who are going to suffer – although they have felt the pain first. Other mortgage holders and would-be mortgage holders will not be immune to the sting of rate rises. As much as €12 billion worth of mortgages will be coming off low fixed rates over the next three years and into a much higher rate environment.

He pointed out that a tracker customer who switched to a 10-year fixed rate mortgage with Avant Money in June 2022 would make savings – based on today’s rates – of around €19,000 over the lifetime of the loan. One area where there has not been much activity is in the variable rate space. Of the major banks only AIB has increased its variable rates with an increase of 0.35 per cent. The bank’s fixed rates have climbed by around 1.5 per cent over the same period.

“It may be that the banks feel that if they did start passing on the rate hikes to variable rate customers it would put the spotlight on them and they would have to ask answer questions as to why they have not passed on the increases to their customers who have money on deposit.

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