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No more relief on tracker mortgages until 2015 – survey

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Charlie Weston Personal Finance Editor – 10 May 2013

THE European Central Bank may not cut its key lending rate again until the end of next year – a move that would be a blow for tracker mortgage holders.

A comprehensive survey of European economists has found that most do not expect another cut until at least 2015.

This month the ECB cut its lending rate to 0.5pc in a move that will save 375,000 tracker holders around €30 a month on a €200,000 mortgage.

And last week head of the bank, Mario Draghi, said his organisation was ready to deliver another reduction.

The Frankfurt-based central bank will leave its main refinancing rate at its present level until the end of 2014, according to a survey of economists by Bloomberg news service.

The same survey shows that 27 of 32 economists predict no cut in the benchmark rate by the end of 2013, while five see a reduction to 0.25pc.

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