Bank of Ireland considering variable rate mortgage increase

Bank of Ireland considering variable rate mortgage increase

Following on from speculation last week that AIB might be set to raise its variable rate mortgages, Bank of Ireland has also admitted to examining its prices.

The decision comes after the bank announced a loss of €2.1 billion for 2012 yesterday.

Bank of Ireland chief executive Richie Boucher, pictured, said: “Raising (variable) interest rates has not been ruled in or out.”

As many as 70,000 borrowers could be hit with higher monthly bills if the partially state-owned bank does push ahead with an interest rate increase.

Customers with tracker mortgages – where the interest rate is tied to the official ECB rate – will not be affected, unless the main rates change.

Last week Bank of Ireland lifted interest charges in the UK for some tracker mortgages there, even though the official rates had not changes.

That was possible under the UK tracker contracts but could not happen here, Mr Boucher said.

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