Bank of Ireland has announced an increase in interest rates for their fixed mortgages. The move comes as part of the bank’s efforts to manage the costs involved in providing home loans. The changes will affect a range of fixed-rate mortgage products and could result in higher monthly repayments for some customers. In this article, we will examine the reasons behind the decision and what it means for those looking to secure a mortgage from the bank.
Bank of Ireland has announced a 0.5 percentage point increase in fixed mortgage interest rates for both existing and new customers. However, variable and tracker rates will remain unchanged. The Irish Examiner reports that the increase will affect both those at the end of their fixed rate period seeking to re-fix their mortgage, and variable or tracker rate customers wishing to move to a fixed rate. Depositors with credit approval who drawdown their mortgage by May 5th can still receive the previous fixed rates. The bank will also introduce a new one-year term deposit account at 0.5% capped at €250,000 for business customers, with the mortgage changes coming into effect immediately and the deposit account available from April 18th. The European Central Bank has raised interest rates six times since July 2021.
In conclusion, the news of Bank of Ireland raising the interest rates for fixed mortgages has caused a stir among homeowners and potential buyers alike. While it may be a blow for those looking for affordable home financing options, it’s important to keep in mind that interest rates are affected by a number of economic factors beyond the bank’s control. Nonetheless, it’s important to stay informed and keep a close eye on the market as the situation continues to unfold. As always, careful planning and research will be key when it comes to making informed decisions regarding home financing.
