ICS announces interest rate hike for its variable rate customers

The increases will not impact on the fixed rates of existing customers or customers with a valid fixed rate loan offer.

The increases mean the owner of a home with an ICS variable rate mortgage with a loan-to-value rate below 70% will see their interest rate increase from 2.45% to 3.7%.

Mortgage firm ICS is to raise its interest rates, adding 1.25% to the rate for all owner-occupier mortgage holders.

The increases will come into effect from October 1. In a statement, the firm said the increase was due to significant increases in the cost of funding resulting from ongoing volatility in the international capital markets.