Homeowners with tracker mortgages could be set to benefit from further cuts in their monthly repayments this autumn.
The head of the European Central Bank, Mario Draghi, signaled yesterday that rates would stay at their historic low of 0.5% for an extended period and may even go lower as they weigh up whether to reduce the rate by a further 0.25%.
Mr Draghi admitted at yesterday’s Frankfurt gathering that the ECB had discussed a further cut.
Rates already fell to a record low of 0.5% in May – a move that saved the average tracker mortgage holder up to €360 a year.
Tracker interest rates have to fall when the ECB rate drops with most tracker-holders paying between 1% and 1.5% above the ECB rate.
Unfortunately, those on variable rates are unlikely to benefit once again.