Last week's interest rate hike is another financial body blow to thousands of homeowners who were already treading water just to survive. Too much, too fast and way ahead of salary increases.

The European Central Bank's determined rate rises may yet result in the Irish property crash that has been predicted for a decade. And the people who really can't afford it . . . first-time buyers . . . will be the first to fall.

For a 24-year-old teacher from Cork, it all seems a little surreal. Orla Ryng handed over her first mortgage repayment in August, having recently purchased a two-bedroom apartment in the county.

"A week after I paid the installment, I got a letter saying the repayments were going to go up, " she said. "It meant that straight away I was being pushed out of the 900 region into a four-figure sum, and even just seeing that on paper was very daunting, psychologically."

Ryng said that while she was aware that interest rates were rising, the reality of it happening is still shocking.

"I suppose, when I was buying, there were so many different figures and costs thrown at me that it all seemed very abstract, " she said. "But when you see this huge sum being taken out of your account, it's a very different matter. I have already got the longest-term mortgage available to afford the repayments, so any increases are going to be a real financial strain."

Currently, Ryng is managing the entire mortgage on her own. She can't get someone to rent the second room until she has furnished the apartment, and she can't furnish the apartment because she doesn't have enough money.

"Obviously people expect certain standards when they rent, like having a couch or a fridge for example, " she said.

"It's going to take me some time until I can get all the furniture and carpets and everything else. There are just so many outgoing bills that I'm just trying to fill the gap between what's going out and what's coming in. Just trying to keep my account in the black is a challenge."

Added to the expenses of solicitors' fees, new connection fees, high mobile phone charges and rising electricity charges, Ryng has now also noticed she's spending more on transport.

"I ended up having to buy outside of the city, because everything there was too expensive, " she said. "That means that I'm spending much more on petrol in the commute to work, and much more on taxis when I go out at night. I can just about manage at the moment, but I can't imagine how I could do this if I had a child, or any other financial responsibilities."

For a young Wicklow couple who bought their apartment a year ago, the rising interest rates mean they are very apprehensive about trying to buy a bigger home.

Aoife Ronan and Declan McNally, both aged 25, bought their one-bedroom apartment at Eden Gate, Delgany, last year. Now they're looking at a slightly bigger place in the same complex to give them more living space.

"To be honest, we're very concerned about the rising interest rates, " said Ronan. "When we buy our new apartment, we're definitely going to have a lot less disposable income. It will put us under extra financial strain, and we are concerned that we won't be able to meet the repayments if the rates continue to rise. But the way we see it, we don't have much choice. If we wait a year to see how the rates go, we probably won't be able to afford to buy a bigger apartment. So it's now or maybe never."

In Clondalkin in Dublin, a 35-year-old woman has been struggling for twoand-a-half years to get her toe on the property ladder. After many failed attempts, Sylvie Mehigan is very close to giving up.

"I'm almost resigned to not ever being able to afford a place in Dublin, " she said. "I've been outbid so many times, and the prices just keep going up. It's like, every time I've saved enough to buy, the prices have been pushed out of my reach again."

Mehigan is originally from County Cork, and she now believes she may be forced to buy a property there as an investment, while continuing to rent in Dublin. The rising interest rates do worry her, but not enough to deter her from her goal.

"I've always wanted to buy a place, and I've got my SSIA coming up which has been earmarked specifically for that, " she said. "The problem is, even with the mortgages I've been offered, the repayments are very substantial. So if they were to increase at all, it would put me in financial difficulty. As it is, I will be looking at paying about half of my salary towards the mortgage. But it is still something I want to do. It's an investment. And I just cannot afford to keep waiting to see if the market will level off."

While everyone is clamouring to get on the property ladder . . . and stay on it . . .

observers of the housing scene are warning of dark days to come. Worried organisations, such as the National Youth Council of Ireland, continue to call on government to take action immediately to help first-time buyers who are "at debt's door".

Meanwhile, the interest rates just keep on rising.