BOI to raise some mortgage interest rates

Bank of Ireland is to increase its variable interest mortgage rate by 0.45% from next Tuesday, August 10, the bank announced today.

New fixed rates will rise by 0.25%, although customers on existing fixed rate accounts will not be affected.

Bank of Ireland said it has no plans to increase its interest rates further before the end of the year.

"Funding mortgages has become increasingly costly," said Brendan Nevin, Director of Consumer

Lending at Bank of Ireland.

"For example, we are paying more to customers for deposits than we are receiving for mortgages. As a result of this, our current mortgage pricing is unsustainable.

"While any increase is regrettable, we have no choice but to make this move to ensure we remain open for business and continue to support our customers and the Irish economy going forward.

"At this point, we do not envisage further mortgage rate increases in the current year outside of ECB moves," Mr Nevin added.

*Customers currently on a fixed rate will not be impacted by this rate increase. The existing fixed rate increases detailed here are for existing mortgage customers who now wish to move to a fixed rate."