Bank of Ireland: A quarter-pointage-point increase in interest expense is planned for Bank of Ireland’s variable mortgage rate. The cost of a five-year variable rate mortgage will increase by 4.75 percent if the loan-to-value ratio is 80 percent or greater. The modification impacts approximately one in ten mortgage clients.
Bank of Ireland Announces Increase in Standard Variable Mortgage Rates
The increase takes effect for existing customers on December 8 and for new borrowers today.
The price increase signifies the initial adjustment to the bank’s variable rates subsequent to the European Central Bank’s (ECB) aggressive series of rate rises that commenced in July of the previous year. The ECB has raised interest rates by a cumulative 4.5 percentage points to date. Customers with tracker mortgages automatically receive this increase, whereas conventional variable rate borrowers do not. Since the ECB rate hike began, Bank of Ireland, led by CEO Myles O’Grady, has also previously increased the cost of its fixed rate mortgages by 1.25 percent to 1.75 percent.
The latest adjustment has no impact on the fixed and tracker rates offered by the bank.
