5.8% bailout consequence for Mortgages

[Josvill2010]

Hi,

What's the consequence of 5.8% interest to the Goverment. Will this drive the interest rate on current mortgages up?

Thanks,
j

 

[TLC]

No doubt it will - the banks will want to recover their costs & we are the suckers!

 

[AlbacoreA]

I can't see how they won't go up. Going to be mayhem if/when they do.

 

[aristotle]

Tracker mortgage and fixed rate mortgage holders won't be affected (at least for fixed rate they wont be affected until they move off the fixed rate and even then some of them will move to trackers).

Mortgages is one thing, there is still a huge amount of personal debt and commercial debt that will be serioiusly affected when\if rates go up.

How long until we see variable rate mortgages of 10%?

 

[AlbacoreA]

Will we see a lot of people on a variable rate moving to fixed rate mortgages?

 

[mmclo]

I suppose in theory non Irish banks could offer competition or the potential of this might restrict increases? Of course this will simply prevent any recovery of the Irish banks

 

[NorfBank]

Will we see a lot of people on a variable rate moving to fixed rate mortgages?

They already are.