Tracker rates expected to remain low for the next three years at least

Those with tracker mortgages are expected to benefit from low interest rates for the next three years, according to mortgage experts.

The current interest rates being charged to those on trackers is at a record low of just 0.05%, with most tracker holders paying around 1% above this.

This means they are paying only 1.05%, compared with the average variable rate of 4.2%.

Speaking to The Irish Independent today Juliet Tennent, an economist with Goodbody Stockbrokers, said it would be at least three years before the European Central Bank raises rates.

This was because economic growth is sluggish in the eurozone and unemployment is still high. And inflation continues to be muted in 19 countries that use the euro.

Chief economist at Standard Life Investments Jeremy Lawson, in Edinburgh, agreed that there is unlikely to be a rise in eurozone rates until 2018.

There are 375,000 people with tracker mortgages in Ireland at present.

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