3 more lenders are likely to follow Bank of Ireland with mortgage interest rates in the coming weeks.
Yesterday the bank announced it was to hit homeowners on standard variable rates with a rise of 0.45%.
It is a move which will add around €60 a month to the cost of repaying a typical €250,000 mortgage.
Irish Nationwide and EBS building society are now likely to follow suit.
Karl Deeter from Irish Mortgage Brokers says AIB has also indicated that it will hike its standard rates in the coming days especially after it reported record losses today.
“It’s not only affecting Bank of Ireland – AIB today in their results said that their cost-income ratio went from 48 to 63%” he said.
“Last year to make €100 it cost them €48, and this year to make €100 it’s costing them €63″.
“That’s actually a prediction of a rate hike within that metric right there”.
“When banks have that issue, one of the few things they can do is increase their margins, or fire a lot of people, or drop deposits – there’s only 3 tools in their box” he added.
