Home Personal Finance Finance Ireland raises variable interest rate to 6.4 percent

Finance Ireland raises variable interest rate to 6.4 percent

Finance Ireland raises variable interest rate to 6.4 percent

It increases the variable rate for existing borrowers and new customers by 0.25 percentage point.

As a result, variable rates for residential borrowers will be between 6% and 6.4%, depending on the value of the loan.

This means that the variable, and that of ICS Hypotheken, will be the highest mortgage rate in the state outside of the vulture funds.

In March, Finance Ireland raised its floating rate by 1 pc.

Finance Ireland said: “Following last week’s rate hike of 0.25 percentage point by the ECB, Finance Ireland has announced a 0.25% increase in its floating rate mortgages, effective 12 June.”

Nothing changes to the fixed rates of the lender.

It said the majority of its mortgages are fixed-rate.

Finance Ireland said it has a range of mortgage offers, and customers were advised to contact the company or a broker or check the Competition and Consumer Protection Commission (CCPC) website if they think they could qualify come for a different product or a different rate on their mortgage.

In March, non-bank lender ICS Mortgages announced another major hike in mortgage rates.

The lender raised its fixed mortgage rates for owner-occupancy mortgages by between 0.6 and 1 percent.

And the floating rate is increased by 1.25 percentage points for all loan-to-value (LTV) bands.

The ICS floating rate increase of 1.25% meant that these ranged from 5.95% to 6.2%, making them the most popular floating rate suite on the market at the time, apart from the vulture funds.

Last month, mortgage lenders Haven and EBS raised their variable rates — and announced increases of 0.35 percent on select products.

Haven announced an increase of 0.35 pc. for its variable rate mortgages from May 18. It also raised interest rates on an 80 percent. variable rate loan-to-value mortgage up to 3.5 pc.

Haven fixed mortgage rate remains unchanged.

EBS raised the interest rate on its buy-to-let variable mortgage to 5.43 percent.

In February, AIB’s variable mortgage interest rate rose by 0.35 percent.

Mortgage broker Michael Dowling said Finance Ireland’s rate hike was not unexpected.

He said the increase brings Finance Ireland’s rates very close to those of ICS Mortgages. They now both range from 6 to 6.4 percent, depending on the loan-to-value ratio.

He said Finance Ireland’s move will add €16 a month in repayments on every €100,000 borrowed.

Mr Dowling added: “These rates are 3% more expensive than the cheapest variable rate currently available from AIB.

“Any borrower still with Finance Ireland and ICS should switch providers immediately,” he said.

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