Relief Due for Mortgage Holders as ECB Lowers Rate

Tracker mortgage holders are set to benefit from the European Central Bank’s latest interest rate cut.

The cut of 0.25%, could save those with €200,000 remaining on their mortgage around €70 per month or €840 a year.

This is the second rate cut of the year, aimed at easing financial pressure as inflation continues to fall.

AIB has confirmed it will adjust its rates to reflect the ECB’s policy.

The ECB’s forecasts show inflation is expected to average 2.5% this year, dropping to 2.2% by 2025.

It is hoped it will eventually fall below the target rate of 2% in 2026.

However, the central bank warned of a potential temporary rise in prices in the short term.