Bank of Ireland increases their variable rates by 0.25%

[Brendan Burgess]

Bank of Ireland hikes variable mortgage rates 0.25% effective today

It is the bank’s first change to its variable rates since the European Central Bank started raising interest rates

www.irishtimes.com

The increases see the rate for mortgages with a loan-to-value of up to 60 per cent jump to from 3.9 per cent to 4.15 per cent, while those with a loan-to-value from 61 per cent to 80 per cent will increase from 4.2 per cent to 4.45 per cent. The rate for mortgages with a loan-to-value of more than 80 per cent will rise from 4.5 per cent to 4.75 per cent.

 

[WizardDr]

BBC:

"Rising interest rates are generally good for bank profits.

They enable banks to increase the "spread" between what they charge borrowers and pay to savers.
That spread is known as the net interest margin (NIM) and at Bank of Ireland it increased from 1.73% to 2.96% over the year.
The bank's chief executive Myles O'Grady said: "We are mindful of the significant change in the interest rate environment and the impact this has on customers.

"Our objective is to maintain a balanced approach as we pass on interest rates to both loan and deposit* customers, balancing affordability for mortgage customers while offering value to depositors."

(* what he meant to say was higher increases for loans and lower increases for deposits so they widened margins considerably using ECB as an excuse)