3/4% increase by the End of 2006

C

CollyD

Guest
Hi All

Just read this article in Finance magazine: http://www.finance-magazine.com/display_article.php?article_id=6025

Says that by March the ECB will be at 2.50% and by the end of the year it will be at 3.00%. UK is to stay the same as there interest rate is already at 4.25%.

Pure speculation but not that unrealistic either. Paying the ssia into the mortgage looks better and better each time the interest rate rises.

It also suggests the time to fix is gone, no harm if you can afford it to go to 3% and that is not including the banks slice which will probably bring it to 4.1%. This increases a 1,030Euro monthly repayment mortgage over 29yrs at 3.25% rate (this includes the recent .25% increase of the ecb) increasing it to 1,130Euro as per Karls mortgage calculator. The more the ECB raise it the less savings I have darn them.
 
The Germans (Bundesbank) want higher rates.
[broken link removed]

The possibility of rates rising faster than anticipated is big news for Ireland considering our dependance on the housing market and the amount of personal debt which recently accelerated past a quarter of a trillion euros.
 
Dan McLoughlin was on the wireless (Radio 1) this morning predicting or at least outling a real possibility that the ECB rate could go to 3% or above by then end of the year
 
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