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THIS WEEK, WE asked readers to get in touch and let us know if they have been feeling the impact of higher mortgage interest rates.
Now at 4.25%, the European Central Bank’s main rate for pricing mortgages is the highest it has been since May 2001 after nine consecutive hikes.
The immediate impact of these rises has been felt by mortgage holders on variable and tracker rates and by any homeowner who has reached the end of their fixed-rate term.
First-time buyers are also facing significant increases in their monthly mortgage payments as a result.
On top of this, some 60,000 mortgage holders whose mortgages are owned by vulture funds are unable to switch to high-street lenders and are stuck on rates as high as 10%.
We asked readers to get in touch with their stories.
The vast majority who did said they were under pressure and struggling as a result of higher monthly mortgage repayments, especially considering the rising costs of other essentials like food and energy bills.
Many people said they are having sleepless nights as a result of their financial concerns and a lot said they are seriously worried about the future.
Here are some of the stories we heard.
One reader contacted us and said:
“Both me and my husband work fairly good jobs. We built our home in 2007 and were lucky at the time to get a tracker. Since July last year our mortgage has gone from €930 to €1460.
“We have three kids and do the best we can. No holidays or day trips this year. Had to cancel health insurance. We’ve only one car and don’t live lavishly. Food from Aldi and clothes from Penneys or second hand shops.
“Our wages haven’t changed with inflation but our mortgage has. We’re in arrears, not by a lot but still the pressure on you to be everything for everyone is so disheartening.”
A first-time buyer whose property is currently sale agreed wrote to us.
He said: “I’m waiting 4 months to get the MUDS from the management company with no response in sight. If I don’t draw down the mortgage in the next two weeks I’m subjected to another 0.25% on my interest rate.
“I’m already struggling to afford it and I haven’t even got the keys yet. It’s very frustrating.”
He added: “And at the same time I read the bank is recording huge profits.”
A single mother whose mortgage is with Pepper Finance told us she is working extra night shifts to afford her monthly payments which now have an interest rate of over 5%.
She said because she is working extra hours it impacts her one parent allowance.
The reader said she has been in contact with MABS for “many years”.
“I am in no position to switch or if I sell my house I would not get a mortgage as I’m only out of insolvency.
“I will be 72 when my mortgage is paid and still 20 years left on it. This is causing me huge stress and affecting my health.
“I have emailed the Finance Minister and many numerous TDs about my situation. There seems to be no help given for mortgages taken over,” she said.
One reader reached out to say although they aren’t struggling yet they will be next year when their fixed rate ends.
“At the moment we are looking at an increase of €500 per month in our repayments – more if rates go up between now and then. I’m not sure how we’ll manage,” they said.
“We have a child who has additional needs. We pay privately for their therapies. Going public wasn’t an option. We are on waiting lists but have been told it’s not possible to say when we’ll be seen.
I’m looking at leaving a job I really like, simply because I can’t afford to stay there.
“We haven’t said to family that we’re going to be struggling next year. My parents would only feel under pressure to help us and I don’t want that for them. They have enough going on looking after themselves.”
A reader from Dublin, aged 40, told us how she and her partner are “extremely worried” about coming to the end of their fixed rate next year.
They bought their house a little over two years ago for less than they were approved to borrow as they did not want to overstretch themselves.
“However, calculating our repayments at the current interest rates, and what our monthly repayments could potentially become, we don’t think we will be able to keep up with them,” she said.
“We are both in full-time employment, and have already made a couple of huge sacrifices to ensure we can keep afloat. This country is the absolute pits for the squeezed middle…quickly becoming the working poor. ”
A reader named Lynn wrote:
“I’m really struggling with the interest rate hikes. I have a tracker mortgage. I was told not to fix so it’s gone up nearly €400 a month. But we are getting hit from every direction, with food bills being higher and electric bills,gas bills and then the cost of petrol and diesel.
“This country is a joke. It’s hitting the working class as we don’t get fuel allowance or back to school allowance. We work to keep our head above water. It’s a joke. I work 20 hours a week and my husband works full time. We are spending easily €600 extra a month with all the price hikes.”
Fred, mid 40′s from the South East, told us he is kept awake at night with money worries.
“I’m one of the unlucky many that have seen their mortgage payment rocket in the past few weeks. It’s a bitter pill to swallow.
“Having bought at the peak of the boom in 2006, all was good. One surprise kid and two reasonably well paid jobs (both in retail/sales) then came more kids and a redundancy as we hit the recession in 2008/2009,” he said.
Fred told us that they played catch up as the years progressed but money was always put aside for school, creche and child-minding bills.
“Not poor enough for state help or assistance, but taking in too much money on paper to meet criteria,” Fred said.
“Again I find myself worrying about the future, awake at night as the direct debit hits every month and wipes my balance clean.
“After doing so well during the recession and managing to keep the house above our heads, I now again face a huge dip in income and a massive increase in expenditure as the people I need to buy goods from me choose not to.
“It’s a very bleak outlook and I am more worried than I’ve ever been. In my mid-40s I wonder have I failed my family, made bad choices,” he said.
“I will get through this with support from friends and family, but I fear there will be a marked increase in mental health issues and suicides as a result.
“It’s crazy to think that a barbaric Russian leader has brought Europe to its knees, perhaps if we can assist Ukraine in reclaiming their land and ending the war,we can return to a more stable and economically viable future for Europe.”
To share your story, please send around 150-300 words to answers@thejournal.ie with the subject line ‘Mortgage rates’.
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A generation ago a single income household could afford to buy a house, raise a family and pay the bills. Its the corrupt banking and political systems fault this is no longer possible. Neoliberal capitalism at its finest.
@Daniel Gilroy: Yes & no. A “generation” is defined as 25 years. A single income couldn’t do all you say back in 1998. But I see what you’re getting at, but a little further back in time.
@Alan Wright: well Alan, while I agree with you most if the time, I did buy my current place in ’98, and have managed all the above for most of it. The last 18 months though, have been the toughest, especially since the energy provider bills started increasing, and the extra costs imposed by the Greens
@Alan Wright: in 1998 i built a brand new home as a single person. No issues whatsoever in doing so. I think my morgage was about 600 a month.
@Alan Wright: so in conclusion, Daniel is right, a lot more was possible on one household income 25 years ago that what 2 gets you today.
@Daniel Gilroy: You just had lucky running. In 1998, property prices had standard for ages and were great value relative to incomes. The economy really exploded after that as well so timing was perfect to buy. Go back another ten years and many couldn’t even get a job and had to leave the country
@Allora: you done well! I brought my home in Dublin in 1999, when rents were going up,
I couldn’t get a mortgage on my own wages then, I had to have my parents guaranteeing it. My repayments was £700pm or €888 when we changed to Euros. My co-worker who brought in 1995 did way better, his mortgage was barely 400pm and no guarantors; he was able to pay off his mortgage early, as our wages doubled from 1995-2005. But since 2005, there’s been no comparable increases, but the cost of living has trebled and mortgages are increasing…
It’s not Russias fault, Opec have cut oil production constantly to keep prices high. The truth is the west is in trouble financially, Russia has hardly contributed to the tech sector bubble being burst or the west’s heavy reliance on Asian manufacturing for it’s consumerism addiction.
Here in Ireland our leaders in government like to blame Brexit, Putin, Covid, and the recession of 2008.
Realistically our leaders cannot take responsibility for their incompetence. But anyway enjoy paying 1200 for a double bed, just so you know its covid fault or a Russian boogeyman, sorry I mean brexit lol.
@Jon Jon: Anything to add about the article in hand?. Like maybe show some remorse for the people of Ireland that have got screwed by FFFG well before the 2008. You’re a boring throll that obviously likes a few likes.
@Jon Jon: Putins butt bot is on the boil early
@Paul Gorry: remorse? Haha live in the real world Paul. Ask the central bank for remorse, I didn’t do anything, infact I’ve not one childhood friend left in this country theyve emigrated
@SquideyeMagpie: my point was that our leaders/media are blaming Russia for issues that are not completely stemmed from the war. But you are a dummy
@Jon Jon: Please, these points are akin to a child firing an AK
Greed,greed and more greed,my advice to anyone thinking of taking a mortgage think strongly again,get a council house at least the rent goes off you’re income better system,might not own it but it ain’t worth having no life over,this government has abandoned those who went out and worked and continue to work getting no allowances for mortgages getting hit every direction,huge sacrifices have to be made to keep payments up no way is it worth it,I was told as years goes on it gets easier 17 years on its harder still paying heavy interest so that was lies.No ones saying it’s a garden of roses going abroad but it sure ain’t one here they’ve pushed the cost of everything up so high next generation coming up hasn’t a hope, better off claiming everything seem to be only a fool making an effort
@Paddy C: I can remember reading stories in newspapers and from people who have witnessed episodes of residents in so-called private housing estates objecting to council tenants being housed in private estates because they did not want Council tentants beside them and that is not too many years ago. Many of these are now in trouble with payments on their mortgage themselves I bet they would be happy to be living in a council estate People forget very easily.
@Alan Scott: Some of that may be down to snobbery but there is a difference between living in a council house paying council rent and living in a private estate and having the council buy up houses and putting council tenants in them while you pay your mortgage on a property that is losing value because of the increase in council properties in the estate.
@The next small thing: Yes I get what you are saying. I got a house from the Dublin County Council as it was known by then back in the early 80s a few years later purchased the home from the Council with a mortgage I remember talking to people the question would come up and where do you live ? with a lot of them once they established it’s a Council estate interest would be gone. Now don’t get me wrong not all people are like that but quite a few are and still are to this day . Things have changed now I see in the estate landlords are purchasing the houses in local Authority estates and letting them .
The problem here isn’t have we failed our families, the answer to that is no we haven’t. In fact personally I went and bettered myself through education getting multiple degrees & a masters so I could leverage it for a better position and pay where I work. It was great, however since the last election my salary has steadily decreased year on year despite raises given to me. The reason for my salary decreasing is because of added & increasing taxes by this government. It’s just farcical! You work and work and work but for what to be taxed into nonexistence by the politicians while they raise their own salaries & pensions effectively thumbing their nose at the electorate! If I was younger I would reluctantly leave Ireland as the politicians don’t care about anyone’s future but their own.
60,000 mortgage holders trapped by vulture companies. Bit hypocritical of FFG giving sound bites concerning mortgages when Noonan rolled out the red carpet when he invited them in. Varadkar conveniently fails to mention this when he preaches solidarity with struggling mortgage holders. Martin fails to mention it was his party along with the Greens who facilated the banks and developers which led to vulture companies arriving . Yet FFG/ Greens defend them. Hypocrisy.
@Donal Desmond: Greed is an addiction problem and should be treated as such. Forcibly if needs be.
@Donal Desmond: They arrived because the main banks couldnt reposses. Nobody wants families out of their homes but they really should have had a proper repossesion process after the Celtic Tiger boom for people who completely over leveraged. If the high street banks could have repossessed, we would have had more banking competition, no vulture funds a more functional housing market and we would have had lowerer interest rates like the rest of Europe for the better part of a decade. Distorting the market by allowing people to stay in arrears for years and years always has consequences such at the vulture funds coming in. Government again abdicating it responsibilities.
The banks, vulture funds, developers etc can only operate to the extent the government allows them. The (any) government loves to hear you blame others for their misadventure…….
No you haven’t failed your family ypu are doing a great job. Its the corrupt society we live in caused run by greedy bankers and incompetent government TDs and their lack of cop on & ability to run a country that has ruined your family.
“Have I failed my family”? Cherry pick one quote to gaslight an entire nation who are being turned into serfs by an unimaginable force of greed.
Way to go, Journal. You are at least, consistent.
Disgusting stuff.
@ckNAvKEk: It’s an article Joseph with full stops and commas, and a few paragraphs from people that have experienced the Fact. And was does the genius Joseph do? Blame it on the “journal without actually reading past the headlines. Thats disgusting stuff.
@Paul Gorry: I’m speaking about the headline, genius. They could have chosen many others.
@ckNAvKEk: cmere heres a thing Joseph just dont bother reading the journal if it upsets you that much. It doesn’t take a genius to realise that.
@ckNAvKEk: It’s a excerpt by an individual to demonstrate the despair some are feeling at the moment. Perhaps you may not be feeling it but others here can, unfortunately, relate to this. I spoke to an individual yesterday who is on the brink of having his house repossessed – he has worked his life to have the roof over his family’s head possibly taken – the mental anguish and sense of hopelessness he feels right now is overwhelming – and that was just to me, the listener.
@I can see clearly now: *an excerpt*
What jumps out of this piece is as usual the Irish phenomenon of shame. Everything that runs in this country is shame based & controlled. Its how the country is run. Thats why we need a proper bankruptcy system. To release those from this shame and suffering. No you didn’t fail your family. Your country failed you.
The global financial system is corrupt to its core. But by voting for the same politicians over and over again in every cycle, in every country, in every decade, we enable this.
Roj will be here to save the day.Dont worry everything is good, he will be here soon
INTEREST RATES MAY GO UP OR DOWN – read what you buy and don’t over stretch yourself.
It’s not the mortgage payments, its the unsecured. The 50k cars that they have on PCP that’s gonna wipe them.
Although the middle will always get squeezed and there should be some relief for people who actually work.
As for the bum life comments. Yes of course, sit on the scratcher, go on the sick, have kids and don’t get married. You are a testament to hard work and doing the right thing. The council (with the tax money that everyone who actually works and contributes to) will pay for you to do nothing or the very bare minimum.
Your neighbours who do work their arses off will happily kill themselves to own their own houses and allow you to do nothing.
And John John, Sorry forgot
Between mortgage rates,the health service,crime,etc ,it beggers beliefs how anyone in their right mind can vote for the ffg parasites
@Brian molloy: didn’t know the Government put up interest rates thought that was European Central Bank which the Government have no say in but sure its great to be able to blame them
Only in Ireland do people blame themselves for politicians and bankers greed. Only in Ireland
@The ghost of Ireland’s past: well on here most are blaming politicians & Bankers there are some living in Mansions half the size of hotels & way above their means but yet its not their fault when they get in trouble , the guinuine people who have a modest home & find themselves with interest rates rising in trouble they are the people that need help
Irish people need to get over the obsession with real estate. Had a conversation with a stressed neighbour about mortgage expenses. 4 of em in what is the size of a small hotel. Downsizing a great option. There is more to life than killing yourself to pay off a mortgage you can’t afford.
@Richard Gavin: 90% of millionaires come from ‘real estate’… and they’re not happy that everyone else has cottoned on. So the ladder needs pulling up a little or there will be no ivory back scratchers left
@Thesaltyurchin: historically stocks do better than real estate. We have turned housing into an investment vehicle. We need to make investing more attractive in this country (eg ETFs) to stop the real estate speculation.
@Richard Gavin: We’re deeply embedded in it tho and the truth is that the majority of the Irish middle class are sorted as a result. But yea, too many new rich, upsetting the old order.
The housing crisis is FFG policy. It’s not an accident or a mistake. They created it and it’s one of the few things they’ve managed to do successfully. I know the alternatives aren’t great but if you vote for FFG you’re voting for this and can’t complain when you’re struggling with bills and your kids are still living at home in their 20’s. You wanted it, you got it.
@Paul Gorry: That’s right, we only want happy campers here, no complaints or dissenting opinions please. Bye bye, Paul. Enjoy your day, kid : )
Make your elected officials pay, contact them and let them know you’ll be hanging them out to dry, do it before they ban it.
@Thesaltyurchin: did u really write above text? get real
For God’s sake would ye listen to yourselves. People revealing their deepest worries on here and the majority of ye blame whoever ye hate the most or state the b1eedin obvious. If a friend said to you, that they were about to be made homeless, would you console them by blaming FFG or would you try and help them find a solution. Probably the former!
Every generation experiences major difficulties and most of those difficulties are dealt with initially by self sacrifice, allowing for society to help the most vulnerable first because of the countries limited funds. I am not saying for a second that the GOVT or the Banks or Climate or Ukraine etc etc don’t affect the situation and Yes they could do an awful lot better.
But this inability to look close to home and self sacrifice seems like a different planet to most, be it the likes of netflix, 7 year olds on iPhones, expensive social life, concert tickets, the spend spend spend mentality and get somebody else to foot the bill, which usually means taking from the most vulnerable, as above. One E.G. Demands to build 50 k houses p.a., ridiculous! esp when Council houses are handed down generations with no incentives to own your own house. Demands for a right to housing.
There are people who are genuinely suffering and if we can’t give them a leg up first, then what does that say about us. Don’t vote for any political party unless you have checked out their relevant policies first but make sure you vote.
I hate to say it but I think it’s going to get worse before it gets better….
@A F: I believe you are most likely correct. In Ireland something like 95% of mortgages are 2-3year fixed. Historical interest rates sit between 5% and 7%. Most households will eventually roll from lower rates (2%) to approx 5-7% if history is anything to go by. This is going to be a big shock for many households.
Housing is at the root of most people’s financial problems. It was allowed to be commodified rather than be viewed as an absolute necessity for people to live their lives. Inevitability social disaster will follow.
@I can see clearly now: I get your point but I don’t think yo get mine. See the next comment for context… “No you didn’t fail your family, your govt failed you”.
Now google gaslighting.
I think we are on the same side. Have a great day!
100 years of FFG has failed the people of Ireland
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