Bank of Ireland’s chief financial officer Andrew Keating expects Irish mortgage interest rates, which have fallen in the past five years, to start increasing again from here on – even though he believes the European Central Bank (ECB) may hold its main rate at zero until 2022.
Mr Keating said this was due to the increased amount of expensive shareholders’ money, or capital, that Irish banks have to hold in reserve against mortgages. This is required because of the scale of the mortgage arrears crisis in the Republic in the wake of the 2008 crash.
https://www.irishtimes.com/business...s-time-on-irish-mortgage-rates-cuts-1.3804737
Mr Keating said this was due to the increased amount of expensive shareholders’ money, or capital, that Irish banks have to hold in reserve against mortgages. This is required because of the scale of the mortgage arrears crisis in the Republic in the wake of the 2008 crash.
https://www.irishtimes.com/business...s-time-on-irish-mortgage-rates-cuts-1.3804737