Irish bank confirms mortgage rate increase

Bank of Ireland has confirmed that is increasing its mortgage rates for the fourth time in a year.

The move includes those who are reaching the end of a fixed rate period and opt to re-fix again.

Fixed rates will go up by 0.25 percentage points for new and existing customers.

This includes customers who are coming to the end of their fixed-rate period and are seeking to re-fix their mortgage, and tracker rate or variable rate customers who wish to move to a fixed rate.

The new rates are effective immediately.

There is no change in the variable rate.

However, the European Central Bank is expected to announce an interest rate increase tomorrow, which could see variable rates up by an expected 0.25 percentage points, increasing monthly repayments for home owners. 

The bank has said its decision is due to the cumulative 4% increase in ECB rates since this time last year.

Mortgage applicants who already have a credit approval and who draw down their mortgage by August 24, can still avail of the previous fixed rates, Bank of Ireland said.

The bank is also increasing its savings rates, which will be double the amount of the rise in mortgage fixed rates.