There is bad news in store for Bank of Ireland mortgage customers today.
The bank is to increase its variable interest rate by 0.45% from next Tuesday August 10th.
New fixed rates will rise by 0.25%.
However customers on existing fixed rate accounts will not be affected.
Bank of Ireland says it has no plans to increase its interest rates further before the end of the year.
Brendan Nevin is Director of Consumer Lending and explained the reasons behind the increases.
“Funding mortgages has become increasingly costly. For example, we are paying more to customers for deposits than we are receiving for mortgages”.
“As a result of this, our current mortgage pricing is unsustainable”.
“While any increase is regrettable, we have no choice but to make this move to ensure we remain open for business and continue to support our customers and the Irish economy going forward” he added.
Charlie Weston is the Personal Finance Editor with the Irish Independent.
“A family on a €300,000 mortgage – you’re talking about an additional €72 from this increase alone” he said.
“And remember this is the second time that the Bank of Ireland have increased their rate this year; in April, Bank of Ireland increased its mortgage rates for standard variable customers”.
“Since the start of the year, if you’re on a standard variable – say you borrowed €300,000, you’re going to pay an extra €150 a month” he added.
