Following Irish Life & Permanent and EBS, Bank of Ireland are increasing their mortgage interest rates and AIB are not far behind with talks that their rates are likely to rise by half a percentage point in the next few weeks.
Many have voiced their concerns that the latest round of mortgage rate increases is putting families under enormous financial pressure as they struggle with their mortgage repayments. Not only that but many have to live with the burden of continuing to pay a mortgage which is now more than likely worth significantly less than the purchase price.
However on the other side of the fence there is a general consensus that mortgage rates must rise. “Banks have to borrow on the money markets to get the funds to lend the money for mortgages. If bank profits continue to deteriorate they will need even more of a bailout of taxpayers’ money”.
Mortgage Interest Rate Rises
- Are they justified? Or
- Are do the Banks “…not care about families or people and the profit margin is their main driver”