Homeowners across Ireland issued warning ahead of possible cost rises

Homeowners in Ireland are rushing to fix their mortgage rates ahead of this major change

There are concerns that mortgage rates in Ireland will now increase with the European Central Bank (ECB) planning to increase rates in a bid to combat inflation.

Experts have warned homeowners that the ECB may raise their rates as early as June.

According to The Independent, banks across the world are planning on raising their interest rates "to stem renewed inflationary pressure from the conflict in Iran."

Many homeowners are also breaking out of their current fixed-rate agreements by signing new fixed-rate agreements. This is becoming increasingly common as people attempt to protect themselves from rising mortgage costs.

In March, it was revealed that mortgage rates in Ireland were the 7th highest in the euro zone.

Trevor Grant, chairperson of Irish Mortgage Advisors, told RTÉ that mortgage rates will continue to rise due to the ongoing conflict in the Middle East.

He told the broadcaster:

"There are growing concerns about the possible impact of the Middle East conflict on mortgage borrowers. A prolonged war in the Middle East could lead to a substantial spike in euro zone inflation, and the European Central Bank could increase its interest rates to combat that, with many mortgage borrowers coming under pressure as a result."

He added, "Many homeowners will likely be faced with the double whammy of higher mortgage repayments and the higher energy and other day-to-day bills."