Bank of Ireland increases fixed rates again (Jan 2023)

The bank is applying a three-quarter percentage point rise across its range of fixed-rate loans offered to new borrowers, while the fixed rates available to existing mortgage customers are now half a percentage point higher.

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Applicants who already have a credit approval and who draw down the mortgage by February 21st can still avail of the previous fixed rates.

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My application went to underwriters last week so i fear I'll have missed out on old rates! I'll be complaining as my application was delayed due to a BOI system issue that added a month delay!

The fixed rates on new mortgages are effective immediately, while deposit rate changes will take effect this Friday.

It comes after big shareholders in Bank of Ireland have begun questioning the bank’s “uneconomic” mortgage pricing after all its main rivals put up rates in the last two months.

AIB, Permanent TSB and Avant have all recently increased the interest they charge on fixed-rate loans in response to a series of aggressive rate rises from the European Central Bank.

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I am suspicious that BOI's mortgage pricing really was "uneconomic". After all, they are awash with customer deposits on which they pay almost zero interest and which they use these to fund their mortgage lending.

It seems more likely that the bank's institutional investors see an opportunity to increase profits, while being able to point to rising ECB rates as the supposed reason for increasing mortgage rates – even though the ECB increases probably cost BOI very little.

Paul F said:

It seems more likely that the bank's institutional investors see an opportunity to increase profits, while being able to point to rising ECB rates as the supposed reason for increasing mortgage rates – even though the ECB increases probably cost BOI very little.

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All businesses price on the basis of what the market can bear. Why should banks be different?

I'm a complete amateur who fixed his BoI rate three months ago for five years as it was crystal clear the retail rates were going to rise. Don't blame professionals for looking for the same!

NoRegretsCoyote said:

All businesses price on the basis of what the market can bear. Why should banks be different?

I'm a complete amateur who fixed his BoI rate three months ago for five years as it was crystal clear the retail rates were going to rise. Don't blame professionals for looking for the same!

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Based on the money makeover here, i got my letter back confirming fixed at 3% for the next 5 years also thank goodness.