ECB cuts interest rates for the first time since 2019, with tracker mortgage holders the big winners
The Frankfurt-based central bank’s refinancing rate, which tracker mortgages here are priced off, has come down by 0.25 percentage points to 4.25pc.
The European Central Bank (ECB) move was widely anticipated and attention will now focus on how many more reductions there will be in the coming months.
The reduction, which will see rates falling from a 22-year high, will be a big boost to tracker mortgage holders, as their rate moves in line with the ECB refinance rate.
There are 180,000 customers with tracker mortgages, which represent around a quarter of the mortgage market.
They have been the worst hit by the ECB hiking its key lending rates 10 times up to last September.
People with trackers will see €13 shaved off their monthly repayments from next month as a result of the ECB reduction, meaning a saving of €156 a year.
Today’s News in 90 seconds – 6th June 2024
This is based on a homeowner couple with 15 years left to pay and €100,000 outstanding.
Tracker…
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