Bank of Ireland increase its fixed rates by 0.25% - RTÉ Radio 1
Bank of Ireland (BOI) has announced that its fixed rate mortgages for new and existing customers will increase by a quarter of a percent.
Daragh Cassidy, Head of Communications at bonkers.ie, appeared on Today with Claire Byrne to discuss what this means for Bank of Ireland customers and how it will impact them.
Main points from the interview
- Bank of Ireland has blamed its decision to increase its fixed rates on the cumulative 4% increase in ECB rates since this time last year.
- BOI’s increase of its fixed rates will only impact existing customers when their current fixed rate period ends and they are looking to refix their fixed rate term.
- If you are a BOI customer whose fixed rate term is due to end soon you will have to pay the higher fixed rate if you opt to refix your mortgage with BOI.
- Compared to other European countries where fixed rate terms can last 25 years, fixed rates in Ireland are much shorter. They are usually between 3 to 5 years long.
- It is unlikely that people will be able to find mortgage rates under 5% soon. The ECB is expected to raise rates to 4.25% which will cause mortgage rates, in particular tracker rates, to rise again.
- At the end of 2022 you could get a mortgage rate of 1.9% but Daragh expects that by January 2024 5% will be the lowest rate available which marks a big turnaround.
- People need to start budgeting for these rate increases and inflation too, as inflation may not fall until 2025.
Switch your mortgage with bonkers.ie
If you’re on a tracker mortgage or on a variable or soon-to-end fixed rate you should consider switching your mortgage to a fixed rate before mortgage rates increase further.
To start your switching journey, schedule a callback through our free mortgage broker service with one of our experienced financial advisors to get your application started.
They will be able to help you find the best mortgage rate for your on the market, and liaise with your chosen lender on your behalf until you draw down your mortgage.