Bank boss: Mortgage rates likely to rise

MORTGAGE rates are “highly likely” to go up across the banking sector over the next year, according to the head of the EBS, who yesterday claimed his building society needs a €300 million capital injection from the State.

Chief executive Fergus Murphy said EBS would like to be invited to come under the scope of the National Assets Management Agency (NAMA) and have over €800m worth of property loans which are of “grave concern” to the building society taken over.

Mr Murphy said about 3% of its balance books are development loans, with €750m to €800m spread across 60 to 70 developers.