Bank of Ireland lowers interest rate on split mortgages

Bank of Ireland lowers interest rate on split mortgages

Bank of Ireland today said that it has lowered the interest rate for customers who have moved to split mortgages.

Customers will now be charged 2.5% on the warehoused portion of the loan.

During Oireachtas hearings last month, it emerged that the bank charged interest on the full mortgage amount, unlike other banks like Permanent TSB and AIB. The bank had said it had to remain profitable.

But Bank of Ireland today confirmed that interest for the warehoused portion would be at 2.5%, the rate the bank currently borrows funds.

In a statement, the bank said: “Arising from the bank’s recent meeting with the Oireachtas Committee we undertook to consider our approach on the interest charges on split mortgages.

“We noted that the vast majority of owner-occupied customers in arrears were on tracker mortgages and that the tracker terms and conditions would be adhered to for co-operating customers availing of a forbearance option from Bank of Ireland,” it added.

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