Irish Lenders Increase Variable Mortgage Rates in Response to ECB Hikes

Variable mortgage rates offered by popular banks and lenders like AIB’s Haven and EBS have been a popular choice among customers in Ireland for years. However, recent reports suggest that both banks are set to increase their variable mortgage rates for selected customers. The news has caused concerns among homeowners and potential buyers who may face increased monthly mortgage repayments. In this article, we’ll explore the reasons behind this move and how it could potentially impact the Irish property market.


AIB’s subsidiaries, Haven and EBS, have announced that they will be increasing certain variable mortgage rates by 0.35% on May 18th, in keeping with other Irish banks following the European Central Bank’s rate hikes since last July. Haven variable loans for owner-occupied homes with less than a 50% loan-to-value (LTR) ratio will have an increased rate of 3.1%, while loans with an LTR of over 80% will rise to 3.5%. EBS’s buy-to-let variable rate will increase to 5.43%, but their owner-occupied rates will remain unchanged. Irish banks have been slower than their European counterparts in passing on ECB rate hikes, primarily due to already-high Irish rates and profitable surplus deposits from Irish banks.


In conclusion, AIB’s Haven and EBS’s decision to increase selected variable mortgage rates may come as a shock to many customers, but it is a result of various factors such as market conditions and regulatory demands. While the announcement may mean higher repayments for some borrowers, it is crucial to remain informed and seek advice from financial experts to navigate these changes effectively. As the mortgage market continues to evolve, customers must do their due diligence to stay updated with any developments and take steps to ensure they are getting the best deal for their financial circumstances.