No change in variable rates BoI, AIB and PTSB on the rise

The Bank of Ireland said its trailing mortgage rates would rise by 0.75% following today’s announcement by the European Central Bank of a 0.75% increase in interest rates.

For most customers, this change will take effect from September 28.

The bank said customers did not need to take any action at this time.

He said he would write to all tracker mortgage customers to confirm the new interest rate, effective date and their new repayment amount.

The bank said no decision has been made on other products.

“The bank continues to monitor all rates and will clearly communicate any future rate change decisions at the appropriate time,” the bank added in a statement.

The AIB Group, which includes AIB, EBS and Haven, said its tracker customers will also see their rates increase following the latest increase.

He said he would write to them to confirm the new interest rate and the effective date.

“AIB did not increase standard variable and fixed rate mortgages when ECB interest rates rose in July and we continue to monitor our rates,” he said of rate products. variable and fixed.

Permanent TSB said its fixed and variable rates would also remain unchanged.

“According to the contractual terms and conditions of the tracker mortgages, the rates of these mortgages automatically increase or decrease to reflect any change in the base rate of the ECB,” a spokesperson said.

“The Bank will be contacting tracker mortgage customers over the next few weeks to advise them of their rate change.”

A Finance Ireland spokesperson said it had no comment on its plans at this stage.

ICS Mortgages said it takes note of the European Central Bank’s decision and will carefully consider the potential impact on its mortgage portfolio.

While Avant said he hasn’t made any pricing decisions at this stage, following this morning’s announcement.

Joey Sheahan, head of credit at online brokers MyMortgages.ie, said a mortgage holder with a trailing rate that has a 1% margin above the ECB rate would pay an extra €72.39 per month on a €200,000 loan with 25 years remaining.

While a variable rate customer whose rate will drop from 3.15% to 3.9% will have to pay €80.56 more per month on a loan of similar size with an outstanding amount of 25 years.

Brokers Ireland said that although predicted by some commentators, the scale of the increase is very worrying for consumers.

He said the real concern now is how long the increases will last and what level they will reach.

“The unfortunate thing is that if there is another round of interest rate increases, they will come on top of a whole host of other increases for homeowners, especially in energy. “said Rachel McGovern, director of financial services at Brokers Ireland. .

“If there is a silver lining, it is that there are still good long-term fixed interest rates in the market, rates that have never been better than they are today. today.”

“In fact, it’s only in recent years that we’ve seen truly long-term fixed rates.”

She added that an unfortunate aspect of the rise in interest rates is that it will impact aspiring home buyers, especially those on middle incomes, who will now have to plan for increased repayments and stress tests. probably higher by lenders.

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