ECB raised rates by 0.25% as expected

Bringing in Tax Relief on mortgages surely flies against what the ECB are trying to achieve. Would there be some objection from the ECB if this populist measure was re-introduced. I am aware of the arguments for introducing it. The last of the trackers were stopped 15 years ago or so.

Dermot said:

Bringing in Tax Relief on mortgages surely flies against what the ECB are trying to achieve. Would there be some objection from the ECB if this populist measure was re-introduced. I am aware of the arguments for introducing it. The last of the trackers were stopped 15 years ago or so.

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The ECB are raising interest rates to bring down inflation in the economy. I don't think they are so concerned about house price inflation.

I'm not saying relief should be re-introduced, but I don't see that being a 'con' against it.

But mortgage interest relief increases general purchasing power of mortgage holders driving up general inflation - it's not just housing demand

European stock markets unaffected by it so probably more interest rate rises to come. It's funny that the European stock markets were affected by the US debt ceiling cliff edge a few weeks ago and were down significantly but unaffected by the ECB rate rises

joe sod said:

so probably more interest rate rises to come.

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Well, they've practically already said that out straight:

I got a letter from the lovely people in pepper today..interest rate going to 7.5 percent.....they said a few months ago that 2050 is my sustainable level this puts me over it what does this mean and believe me I working 12 hours days just to pay the blood suckers

Whazzuupp said:

they said a few months ago that 2050 is my sustainable level this puts me over it what does this mean

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messyleo said:

But mortgage interest relief increases general purchasing power of mortgage holders driving up general inflation - it's not just housing demand

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So did the recent energy credit payments. So did the fuel levy reductions. So would purported tax cuts or band increases. So would VAT reductions. I don't remember them being objected to for that reason as being in conflict with ECB policy.

I don't remember the ECB raising interest rates to combat Irish house price rises, do you?

Those other cost of living credits were a blanket effort and people did complain at the time that they were available to all. But they were small and the cost of targeting would have been too much.

In this case I think there is merit in targeting non financial supports or signposting existing supports to the cohorts impacted, rather than a blanket credit. EG a massive education campaign for people to actually understand their mortgage rate options over the life of their mortgage, vouchers for an assessment with an advisor etc. How many people struggling with rises have actually properly assessed all their options? We have to take personal responsibility for the products we are buying, people make assessments all the time about their cars, their energy bills, shopping around at supermarkets so they are well capable of tackling the biggest outgoing most people have.

God be the days when interest rates were 16% and more, I can still remember to calls to Gaybo and Liveline. We are now at historic 'normal' interest rates.
Once customers keep paying what they can afford, the Banks are not too worried.

A friend smiles with delight every time rates go up as he outlined this should cause people to default on their mortgages or simply stop purchasing and house prices will drop and he can swoop in a buy at discounted rate. His simple line is If you cant pay they take it away.

He does work in Liquidation so I think his business will grow and that may be a second factor.

If you can't pay, they don't take it away in Ireland so unless your friend is a recent arrival in Ireland, he/she should know that.

I gave up my tracker 12 months ago and fixed for 5 years. Inflation was well under way by then and it was obvious to me that it wasn't going anyway but up. I cannot understand people who are complaining about ECB rises and are still on trackers or variable rates....do they want their hands held and walk them into their bank for a chat with the mortgage officer (Pepper and similar customers exempted of course)???