Irish Mortgage Corporation is calling on mortgage holders to review their position after the European Central Bank raised interest rates by a further 0.25 percentage points today, taking the deposit facility rate to 2.50% and increasing pressure on households already facing higher living costs.

The move, widely anticipated following the June rate increase, will directly affect borrowers on tracker mortgages and may influence variable rates in the months ahead. Those coming off fixed-rate deals are also likely to face higher repayments as they move into a more expensive interest-rate environment. However, we are encouraging borrowers not to panic but to use today’s announcement as a prompt to take practical steps.

What borrowers should do now

Check what rate you are on

If you are on a tracker, your rate will rise in line with the ECB.
If you are on a variable rate, your lender may choose to pass on some or all of the increase.
If you are on a fixed rate, your repayments will not change until the fixed term ends.

Understand your exposure

Review how much you owe, how long is left on your mortgage and how close you are to the end of any fixed term.
Consider how further potential rate rises could affect your monthly budget.

Compare your current deal with available options

Recent analysis suggests a typical switcher in Ireland can save around €2,400 a year by moving from a relatively high rate to a more competitive product, with some saving considerably more.
Even if you switched in the past, there may still be better options available now.

Consider fixing all or part of your mortgage

Fixing can provide certainty in a rising-rate environment and protect against further ECB increases during the fixed period.
Partial fixes or split mortgages may also be worth exploring, depending on your circumstances.

Speak to a mortgage advisor

- A whole-of-market review can clarify whether switching, fixing, overpaying or staying put is the most appropriate option for you.

- Advisors can also explain the costs, benefits and timing of any changes, including any break charges that may apply.

Building on June’s warning

Today’s statement builds on our press release in June, when the ECB raised rates by 0.25 percentage points for the first time in almost three years. At that time, we urged households to review their mortgage options rather than waiting to see what would happen next.

With financial markets now pricing in the possibility of further increases later this year and into 2027, we believe that inaction is no longer a neutral choice.

Direct support for borrowers

We offer free, no-obligation mortgage reviews to help borrowers understand their current position and available options. We also work with multiple lenders and can compare fixed, variable, and tracker products across the market. IMC is urging borrowers who are concerned about today’s announcement to seek, whole‑of‑market advice rather than making decisions based on fear or headlines alone. A structured review can clarify whether switching, fixing, overpaying or simply staying put is the most appropriate option.

Rate decisions like today’s are outside any individual borrower’s control. What is within your control is whether you are still on the right mortgage for where you are now. For many households, there are still opportunities to move to more competitive rates, fix for longer, or restructure borrowing in a way that makes monthly costs more manageable.