MyHome.ie Blog
  • MyHome Living
  • News
  • RetroFit Hub
  • Buyers Advice Hub
  • Selling
  • Renting
  • Mortgages
  • Property Report
MyHome.ie Blog
  • MyHome Living
  • News
  • RetroFit Hub
  • Buyers Advice Hub
  • Selling
  • Renting
    • Mortgage Learning Center
    • Calculators
    • Best Mortgage Table
  • Property Report
    • All Properties
    • Houses For Sale
    • Apartments For Sale
    • Available To View
    • Overseas Holiday Homes
      • Properties For Auction
      • Upcoming Auctions
      • BER Assessors
      • Property Conveyancing Solicitors
      • Pre-Purchase Surveyors
    • Find Agents
    • All Properties
    • Houses To Rent
    • Apartments To Rent
    • Available To View
    • Share
      • Irish Holiday Homes
      • Overseas Holiday Homes
  • New Homes
    • For Sale
    • To Rent
    • Auction
      • Residential Land
      • Commercial Land
      • Farm Land
      • Farms
      • Sites
    • MyHome Living
    • Buyer Advice Hub
    • Property Report
    • Property Price Register
    • Price Changes
  • Mortgages
    • Rental
    • Holiday Homes
    • Commercial
    • Sharing
Advertisement
  • Home
  • Uncategorized
  • Latest ECB rate cut is good news... but not for everyone
Uncategorized
Nov 8, 2013 - 11:07

Latest ECB rate cut is good news... but not for everyone

The MyHome Newsdesk
By The MyHome Newsdesk
Share this article
Facebook Share Twitter Share Linkedin Share Email Share Whatsapp Share
Latest ECB rate cut is good news... but not for everyone

Yesterday the European Central Bank announced that it was

cutting its main interest rate to a new low of 0.25%, leaving around 400,000 tracker mortgage holders celebrating an early Christmas present.

The ECB’s decision to cut their rate for the fifth time in the last two years means that anyone with a tracker mortgage will save around €15 per month for every €100,000 borrowed.

That will help ease the burden before next year’s property tax is collected, which could be before the end of the month depending on what method of payment is chosen.

While the savings for those on tracker mortgages is a plus though, you can only hope that those on standard variable rates aren’t made to suffer.

Advertisement

In the last two years, for instance, a person on a tracker mortgage with a loan of €300,000 has saved about €225 a month because of rate reductions, which is an annual saving of €2,700.

In that time standard rates have actually risen meaning that the gulf between those with trackers and those without is growing ever wider.

While no banks have ruled out passing the cut on, it is unlikely that any will, especially as there were hints yesterday that the rate may eventually drop even further in the New Year.

This is all having an effect on the market, of course. Those on standard rates are paying mortgages so high that they can’t afford to save for a deposit to move house while those on trackers are loathe to move in fear of losing their rate.

That effectively means that someone looking to upgrade to a bigger house, with something as simple as an extra bedroom, could – in theory – end up paying around €400-€500 a month extra if they were to sell their home, buy another and lose their tracker in the process.

Advertisement

That is an extreme example, of course, but one that is just not feasible for many people.

Yesterday’s news might be good for many but for others it won’t be.

Let us know your thoughts on it in the comments section below.

Subscribe to our weekly MyHome Living eZine today

Processing your request...

You are subscribed now!

<

  • Tags
  • European Central Bank
  • Friday Feedback
  • Interest rate
  • MyHome
  • MyHome.ie
  • property tax
  • tracker mortgage
  • variable rate
The MyHome Newsdesk
By The MyHome Newsdesk
Share this article
Facebook Share Twitter Share Linkedin Share Email Share Whatsapp Share

Helpful Links

Find your home on MyHome
Read more Articles
Calculate what you can afford to borrow
Welcome to the Retrofit Hub
Advertisement
Advertisement

Related News

What is a Heat Pump?
Uncategorized

What is a Heat Pump?

Feb 27, 2025
Living Cities Initiative
Uncategorized

Living Cities Initiative

Jan 14, 2025
Digital Services Act
Uncategorized

Digital Services Act

Mar 31, 2024
Avant Money and Finance Ireland announce new rates
Uncategorized

Avant Money and Finance Ireland announce new rates

Dec 09, 2021
Average deposit of first-time buyer was €52,000 in first half of the year
Uncategorized

Average deposit of first-time buyer was €52,000 in first half of the year

Dec 07, 2021
Frequent And Popular Searches
  • Buy
  • Rent
  • Featured
  • Property
  • Homes
  • Apartments
  • Property Dublin
  • Property Waterford
  • Property Galway
  • Property Limerick
  • Property Cork
  • Property Kildare
  • Property Meath
  • Houses Dublin
  • Houses Waterford
  • Houses Galway
  • Houses Limerick
  • Houses Cork
  • Houses Kildare
  • Houses Meath
  • Houses Clonmel
  • Houses Wexford
  • Houses Wicklow
  • Apartments Dublin
  • Apartments Waterford
  • Apartments Galway
  • Apartments Limerick
  • Apartments Cork
  • Apartments Kildare
  • Apartments Meath
  • Country Houses
  • Cottages
  • Farms
MyHome.ie Blog
Help
Jobs
About
Equality Guidelines
Brand Safety
Contact
Terms & Conditions
Cookie Policy
Privacy Policy
Digital Services Act
Sitemap
© Copyright MyHome.ie 2025
Advertisement