The European Central Bank (ECB) have raised interest rates by a further 0.75% in yet a further blow to mortgage holders.
Thursday's increase - the third they have made since July - will result in increased monthly payments for those on tracker mortgages, with those on variable rates waiting to see whether or not their lender passes the increase on or not.
In just three months rates have gone from 0% to 2%, the highest level they have been at since 2009.
In a statement the ECB warned that further increases could also lie ahead.
"The Governing Council took today’s decision, and expects to raise interest rates further, to ensure the timely return of inflation to...2%," said a statement.
The latest increase means that someone on a tracker mortgage who has €200,000 remaining on their loan will now be paying around €180 extra each month compared to the start of the year, which equates to an additional €2,160 over 12 months.
If rates reach 3 per cent next year, monthly repayments could rise by close to €300 a month or €3,600 a year.
There are close to half a million borrowers in Ireland on either tracker or variable mortgages that are vulnerable to higher ECB interest rates.
