Bank of Ireland set to raise lending rate for mortgages

DESPITE figures that reveal a rising number of cash- strapped homeowners are falling into arrears, Bank of Ireland has signalled it will raise its lending rate for mortgage holders.

The bank also dismissed suggestions of any blanket industry-wide debt forgiveness solution for those unable to meet their mortgage repayments.

While AIB recently suggested it may offer some form of debt forgiveness to homeowners, banks are reluctant to agree to any policy of debt forgiveness, as it could, they feel, lead to a demand for such treatment from all homeowners.