Thousands face Bank of Ireland UK mortgage rate rise

Thousands of mortgage borrowers with Bank of Ireland and subsidiary Bristol and West will see the cost of their home loan nearly double.

 The bank has announced that it is to raise the rate on its Base Rate Tracker mortgages, despite the Bank rate remaining at 0.5%.

It has the power to charge a top-up level of interest on these home loans, even if the Bank rate does not move.

It blamed the rising cost of providing these mortgages and rules on capital.

Banks must hold a buffer of capital to a certain level in order to keep to European rules.

Rate rises

The bank will raise the mortgage rate for residential customers from, typically, the Bank rate plus 1.75% to the Bank rate plus 2.49% on 1 May.

It will then raise it further, to Bank rate plus 3.99%, on 1 October.

Buy-to-let customers will see their rate increased to Bank rate plus 4.49% on 1 May.

The bank said that 13,500 customers would be affected by the move, with more than half of them buy-to-let customers. The majority also had significant equity in their properties, it said.

The rate increases do not affect customers of the Post Office, which partners with the Bank of Ireland UK.

Borrowers in a position to move should consider switching banks before the full rate hike kicks in.”

If you hold a Bank of Ireland mortgage and would like to see if there is a product available for you to move to, give us a call on 01489 580020 or email us on info@parkgate.net with the basic details.

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