Rate rise ‘could be tipping point’ for householders

A MORTGAGE expert has warned that Bank of Ireland’s decision to increase the interest rate on its variable rate mortgages could “serve as a tipping point” for people already struggling to make repayments.

The bank has announced it is increasing its standard variable mortgage rate by 0.45% to 3.49%. The move will also apply to new fixed-rate mortgages. Its building society, ICS, is putting up its rates by 0.6%.

It is the third institution after EBS and Permanent TSB to increase rates this year.