The European Central Bank (ECB) is anticipated to make significant interest rate cuts this year, driven by economic challenges such as potential US tariffs and sluggish growth in Europe. These cuts, particularly beneficial for homeowners with tracker mortgages, could lead to more attractive rates for new buyers and those transitioning from fixed-rate mortgages. However, many homeowners are approaching a 'cliff edge,' facing higher rates after previous terms at lower rates. Analysts suggest that at least six cuts could occur this year, impacting both mortgage holders and housing prices.
"With inflation now nearing the ECB's target of 2pc, the expectation is that we will see a 0.25 percentage-point cut in rates, bringing the main refinancing rate to 2.9pc."
"Analyst Justin Doyle, of the Dublin offices of specialist bank Investec, said there could be six cuts this year."
"A fifth cut would be a boon for homeowners on tracker mortgages, new buyers, switchers and homeowners coming to the end of fixed rates on their existing mortgages."
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