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24/07/2009
'Worst Still To Come' As Mortgage Rate Increases
As speculation mounts that mortgage rates are about to go up across the board, a new survey has been published showing that the majority of Irish people believe the worst of the recession has yet to come.
The Eurobarometer survey said today that just 21% of respondents to the survey said they believed the economic crisis had already reached its peak.
In fact, things are so bad that almost one quarter of those questioned said they were not confident of having a job in two years' time.
The survey follows comments by the Governor of the Central Bank earlier this month when he warned that Ireland is "unlikely to experience an economic recovery until 2011 at the earliest".
John Hurley made his comments as he launched his final annual report as head of the bank on 14th July.
Today's announcement by the Irish Permanent TSB that it plans to increase mortgage interest rates for around 50,000 of its customers is therefore likely to be seen as a further set-back.
The bank said its standard variable rate will be going up by half a percentage point, adding almost €15 to the average monthly repayment - although the increase will not apply to people with tracker mortgages.
Permanent TSB says the move is necessary due to the high cost of funds, rising deposit rates and tight margins.
This is not being seen in isolation, as it is also thought that the other Irish banks will introduce similar increases.
(BMcC/JM)
The Eurobarometer survey said today that just 21% of respondents to the survey said they believed the economic crisis had already reached its peak.
In fact, things are so bad that almost one quarter of those questioned said they were not confident of having a job in two years' time.
The survey follows comments by the Governor of the Central Bank earlier this month when he warned that Ireland is "unlikely to experience an economic recovery until 2011 at the earliest".
John Hurley made his comments as he launched his final annual report as head of the bank on 14th July.
Today's announcement by the Irish Permanent TSB that it plans to increase mortgage interest rates for around 50,000 of its customers is therefore likely to be seen as a further set-back.
The bank said its standard variable rate will be going up by half a percentage point, adding almost €15 to the average monthly repayment - although the increase will not apply to people with tracker mortgages.
Permanent TSB says the move is necessary due to the high cost of funds, rising deposit rates and tight margins.
This is not being seen in isolation, as it is also thought that the other Irish banks will introduce similar increases.
(BMcC/JM)
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