Irish bank confirms mortgage interest rate rise

A mortgage interest rate increase for new customers has been confirmed by Bank of Ireland. 

A statement issued by the bank read: "In light of recent interest rate increases by the European Central Bank, Bank of Ireland has increased fixed rates for new mortgages by 0.25%.

The ECB has raised interest rates three times so far year. It also indicated that it would likely raise interest rates again in the future as part of plans to curb overall inflation.

The Bank of Ireland statement on Thursday added: "The new fixed-rates are effective immediately, and apply to customers who draw down new mortgages from the Bank. However, new customers who already have a written quote from the Bank for a lower fixed rate, and who draw down a new mortgage by 9 December 2022, can avail of the lower rate up to that date".

The Bank’s variable and tracker rates are not affected by this change.

There is no change to the rates available for our existing mortgage customers, Bank of Ireland confirmed.

"Existing fixed-rate mortgage customers who may be coming to the end of their current fixed-rate period and are considering re-fixing can still avail of these unchanged fixed rates. Similarly, existing variable or tracker customers who choose to opt for a fixed rate can still avail of these unchanged fixed rates.

"As is the case with all rate matters, this approach will continue to be kept under review. Any change in the future will be clearly communicated at that time," the statement added.

Alan Hartley, Director of Home Buying said: “In light of recent interest rate increases by the ECB, Bank of Ireland is today announcing an increase to new fixed rate mortgages of 0.25%. This increase applies only to new mortgages. Customers with existing mortgages with Bank of Ireland and who are considering re-fixing can still avail of unchanged fixed rates.”