Bank of Ireland is increasing interest rates for a number of mortgage and deposit products.
Rates will increase by 0.75% for fixed rates on new mortgages. Bank of Ireland will also add 0.5% to the fixed-rate products its existing customers have the option of moving to. The 0.5% increase relates to customers who are coming to the end of their fixed rate period and are seeking to re-fix their mortgage, and tracker rate or variable rate customers who wish to move to a fixed rate.
The decision follows cumulative increases of 2.5% in European Central Bank rates since July.
It is Bank of Ireland's second interest-rate hike. In November, it added a 0.25% increase to its fixed-rate products.
In an update today, Bank of Ireland said variable rates and tracker rates remain unchanged. Applicants who already have a credit approval and who draw down the mortgage by February 21, can avail of the previous fixed rates.
Bank of Ireland is also increasing interest rates on some of its deposit account products. It is adding a 0.5% increase for Regular Saver personal deposit accounts. It is also launching a new 1 Year Term deposit account at 0.50% capped at €100,000.