MORTGAGE MISERY

Tracker and first-time buyers see ECB hike interest rates by 0.5%

- FERGHAL BLANEY

TRACKER mortgage holders could pay €1,000 more a year after the European Central Bank hiked interest rates by 0.5% yesterday.

The new 3.5% base rate means someone with a €300,000 loan over 25 years must find an extra €80 a month.

That rate will be passed on to all tracker customers immediately, while variable rate customers can expect to see increases down the tracks.

The ECB was widely expected to hike interest rates again in a further bid to dampen inflation.