Note : Below are extracts from an article published by The Irish Independent (27th October 2023) as referenced below
Information published on their website(Irish Independent, 2023), outlines today’s news that despite the ECB pausing its rate hike cycle for the first time since July 2022, Bank of Ireland will be increasing its standard variable rate from December 8th:
Bank of Ireland is to increase the interest cost on to its variable mortgage rate by a quarter of a percentage point. It will push the cost of a on a five-year variable rate home loan to 4.75pc where the loan-to-value is 80pc or more. The change affects around one in 10 mortgage customers.
The increase kicks in today for new borrowers and on December 8th for existing customers.
( Irish Independent, 2023)
Despite increases to its fixed and tracker rates in line with the ECB previously , Irish Independent( 2023) reports that on this occasion it is only variable rate customers of Bank of Ireland who will see an increase to their mortgage interest rate:
The price increase is the bank’s first change to its variable rates since the European Central Bank (ECB) kicked off its bruising round of rate hikes in July last year. To date, the ECB has increased interest rates by a cumulative 4.5pc. That increase is automatically passed on to customers with a tracker mortgage, but not to standard variable rate borrowers. Bank of Ireland, led by CEO Myles O’Grady, has also previously increased the price of its fixed rate mortgages by 1.25pc to 1.75pc since the ECB rate hiking began.
The Bank’s fixed and tracker rates are not affected by the latest change.
( Irish Independent, 2023)
Irish Independent (2023) ‘Bank of Ireland to hike cost of standard variable mortgage’, Irish Independent, 27 October. Available at : https://www.independent.ie/business/personal-finance/bank-of-ireland-to-hike-cost-of-standard-variable-mortgage/a97571319.html . (Accessed 27 October 2023).
Whether you are looking to switch lender currently, keen to switch to a suitable fixed rate, are a first time buyer or moving home and should you have any concerns about the issues raised in this article, or investing in a buy-to-let property, why not chat to a Seaspray Mortgage adviser today about finding the mortgage or rate that’s right for you:
Seaspray Financial Services Ltd trading as Seaspray Mortgages is regulated by the Central Bank of Ireland with registered number C165527
Weston, C. (2022) ‘Homeowners hit by rate rise as Permanent TSB raises interest on fixed rate mortgages’, Irish Independent, 18 November. Available at : https://www.independent.ie/irish-news/homeowners-hit-by-rate-rise-as-permanent-tsb-raises-interest-on-fixed-rate-mortgages-42153755.html
(Accessed 24 January 2023).