Fianna Fáil Spokesperson on Small Business John McGuinness TD has said the rise in the ECB interest rate will heap enormous pressure on businesses and families struggling with their mortgage repayments.
Deputy McGuinness said, “the 0.25 per cent interest rate rise is of huge significance. The increase in the ECB’s interest rate in April was not widely passed on and many families fear that they will be hit with the effect of two interest rate increases from today.”
“There are many in the financial community who believe that a further two interest rate increases are coming down the track before the end of this year, that would increase monthly repayments on a €250,000 mortgage by over €100 a month. There are thousands of households across the country that simply will not be able to bear this burden.”
Deputy McGuinness added, “indeed mortgage holders on variable interest rates have had to endure increases in the cost of their repayments long before there was any change in the ECB rate.
“Not alone are the ECB rate increases very serious for struggling mortgage holders there is a significant threat to the future of many businesses who aren’t locked out of the credit market but now face increases in the cost of credit. It should also be understood that increases in the cost of credit for businesses will close off those facilities for more businesses further threatening jobs.”
“The Government has committed to a range of supports for businesses and mortgage holders, not least an increase in mortgage interest relief to 30 per cent for first time buyers between 2004 and 2008. However the Government appears to be pulling back from this commitment already. Determined government action is the only thing that will keep families in their homes, businesses up and running and people in employment. In this, delay is not an option for the Government,” concluded Deputy McGuinness.
