Irish home owners are likely to see their mortgage repayments jump by hundreds of euro as soon as this summer.
This comes as the European Central Bank signalled that they could increase interest rates for the first time in 10 years.
Many experts have predicted a 0.25% rise in interest rates which could come as soon as July 2022.
This means that some people could see their mortgage payments jump by up to €150 per month or more.
Speaking to the Irish Examiner, mortgage specialist Michael Dowling, of Dowling Financial, predicted that interest rates will rise by 0.25% at first but will amount to a 1.5% rise over the next two years.
Homeowners on a tracker mortgage of €250,000 over a 30-years could see their repayments increase by around €120 a month.
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This is based on a 1% increase in interest rates on a repayment of €804 a month, which would rise to €924 a month.
Homeowners on variable mortgage rates for a €250,000, who pay an average of 3.75%, could see their repayments increase by around €145 a month.
This is based on a 1% increase in interest rates on a repayment of €1,158 a month, which would rise to €1,304 a month.
However, another expert, Goodbody chief economist Dermot O’Leary, predicted an even worse scenario that interest rates could rise by 2.5% by 2024.
If this is the case, homeowners could see their mortgage repayments jump by up to €300 per month.
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