BOI mortage interest rate changes

Discussion in 'The Fair Mortgage Rates Campaign' started by Coldwarrior, 30 Jan 2019.

  1. Coldwarrior

    Coldwarrior Frequent Poster

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    https://www.independent.ie/business...gage-rates-but-increases-others-37765270.html

    BOI are cutting their 1 and 2 year fixed rates by .10% and increasing the 5 and 10 year rates by .20%. Is this the start of banks raising interest rates on their longer fixed rate offerings? Seems strange as if anything the feeling lately (compared to a few months ago) seems to be the ECB is less likely to raise its rates this year now.
     
  2. HollowKnight

    HollowKnight Frequent Poster

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    Also strange that the 2.8% isn't being advertised even though anecdotally, we see a lot of posters here have got it (or just offered it).
     
  3. RedOnion

    RedOnion Frequent Poster

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    2,372
    "Bank of Ireland is also increasing its five-year and 10-year fixed rates, a move that reflects the fact that it expects European Central Bank rates to start moving up in the next year or so."

    There is absolutely no connection to ECB rates.
    All banks hedge their fixed rates in the market. It is cheaper today than a year ago to hedge 5 and 10 year rates.

    I've said before. The only driver of interest rate changes in the past few years is competition. After the rate increase, it's still the cheapest 10 year rate, even without factoring cashback.
     
    Coldwarrior and Sarenco like this.
  4. NoRegretsCoyote

    NoRegretsCoyote Frequent Poster

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    BoI have recently offered me 3.0% on one-, two- and three-year rates.

    I pushed very hard, making three phone calls and telling them that I would switch, but the best they would give me was 2.8%.
     
  5. Coldwarrior

    Coldwarrior Frequent Poster

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    What about the 5 year though, they've now made it less attractive relative to EBS considering they both offer the same cashback now. If anything I'd have thought they'd drop the 5 year rate also since EBS recently upped their cashback to 3%.