Following on from last week’s ECB decision to cut interest rates to a record low of 0.05%, IBEC reports that the average mortgage monthly repayment in Ireland has fallen by €766 per month (€9,000) per year.
Spare a thought for us mugs on a variable mortgage (who didn’t know what a tracker mortgage was).
The banks are losing their shirts on the trackers but making up for it by fleecing those on variables.
Every time the ECB increased rates our variable mortgage went up accordingly, but as they have continued to fall the banks have pocketed the difference.
We now continue to pay a rate of 4.5%. I estimate the bank is making around €600 per month from us alone.
I have no issue with repaying a loan that I knowingly took out, but it galls me that our repayments are not in line with the market rate on account of the banks trying to offset the losses they are making on loans they aggressively pushed during the credit years.