Are highest interest rates on the way due to the conflict in the Middle East?
That’s a question that has been asked several time in the ‘Ask The Expert’ section of the MyHome Mortgage Hub, powered by doddl.
To answer your query, we put it to doddl Managing Director Martina Hennessy, who admitted it was a possibility.
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Speaking to MyHome, Martina said: “There are a number of factors that influence interest rates and interest rate increases and certainly the geopolitical environment influences interest rates, in particular where inflation is increasing and right now, due to the conflict in the Middle East, inflation is increasing due to oil and gas prices.
“When we came into 2026, it was expected that rates would stabilise but obviously, depending on how protracted the conflict in the Middle East is, this could lend itself to rates increasing and that is a tool in the Central Bank’s armoury. When inflation increases, they increase interest rates to try and bring that back down.”
While no one wants to pay higher rates, Martina advised that all you can do is go with the rates that are in front of you when you are purchasing and said it might be worth any new buyer to lock into a fixed rate right now to give them clarity over what they will be paying in the coming months and years regardless of how long the issues in the Middle East last.
She said: “Be mindful that when you are taking out a mortgage go with what rates are in front of you and go what you think is the best option for your particular circumstances.
“It’s very difficult to predict what rates will be but having that comfort over understanding what your repayments will be over a specific period of time will give you the comfort of knowing that your repayments are affordable for you and that you don’t have to be concerned about what might happen in the wider macro environment that you don’t have control over.”
For further advice from Martina and doddl visit the MyHome Mortgage Hub at www.myhome.ie/mortgages
You can also ask Martina a question yourself in our ‘Ask The Expert’ section here.
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