250,000 Mortgage Holders Face Hike
As many as 250,000 homeowners on standard variable loans may soon be forced to pay out at least an extra €76.50 per month on mortgage repayments.
Sources believe banks will move quickly to hike interest rates on standard variable mortgages as soon as NAMA is up and running.
Some of the country’s biggest lenders said yesterday they had no plans to increase rates but AIB, Bank of Ireland and EBS all said that rates are under constant review. Permanent TSB (PTSB) is expected to move first on a rate hike, which is expected early next month.
Goodbody stockbrokers expects rates to increase by 0.5% in the medium term, which would mean an extra payment of €918 a year for homeowners on standard variable rate mortgages.