Mortgage Interest Rate Rises: Are they justified?

Mortgage Interest Rate Rises: Are they justified?

Mortgage Interest Rate Rises: Are they justified?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”
There are 20 comments for this article
  1. autovermietung mallorca at 2:24 pm

    I had been arguing with my close friend on this issue for quite a while, base on your ideas prove that I am right, let me show him your webpage then I am sure it must make him buy me a drink, lol, thanks.

    – Kris

  2. Sidasly at 4:54 pm

    All i can say at this point is to hell with the banks and goverment.They cant seem to touch the big fat cats and speculators who owe banks hundreds of millions but they will take the roof over my head worth small money,but they dont care!!!I dont bother look at media cause it only upsets me, nothing but bad news with one more way the goverment screwing us.More bailouts each week,its ok for the likes of mr Fingleton ceo of irish nationwide 1 million bonus while we pay for it,the dirty lousey rat!.Their all rats in dail eireann and it needs to be exterminated.

  3. Stephen W at 7:02 pm


    • wickedfairy at 4:30 pm

      agreed, its a start, we have all got to stand together on everything to do with our country from now on, we have new landlords again whose agenda is a financial and jobs famine. END THIS ROBBERY NOW!

  4. wickedfairy at 12:01 pm

    still nobody in jail, but the prisons full of people who have not paid fines, including parking fines and TV license fines (paying to watch propaganda lol!!!!)

  5. Y Fetuga at 8:05 am

    This is injustice of highest order, when many families have been milked dry by their cohorts in the government through various levies, taxes and charges in order to bail them out and keep them in business for them to continue earning their fat salary ,they have now sharpen their teeth to bite us by increasing the interest rate of a mortgage that is worthless. I think is high time the banks think about the effects of their action on the public and their cohorts in government should call them to order before the public turn on them . I believe greediness is the word here

    • wickedfairy at 11:55 am

      lol, they do not give a damn about us, nor do the government, look at our health services, being willfully run down, but private hospitals being build (eh, tax breaks anyone?). Get out and march folks, get these parasites out. Watch Max Keiser, link below, this will give you an idea about what is going on globally, not just here.

  6. louise witter at 5:37 pm

    Ill make it simple,its like Brian Cowen is going into your bank account and taking YOUR money to pay off his greedy selfish fat cat friends bad debts.The banks are a big part of this greedy gang.If Brian Cowen wants to look after the people for ONCE then he need to put legislation throughh to put a stop to banks putting up the rates or the country will go under

  7. ZZ at 2:03 pm

    Not justified….these are the same people that got us in this mess. The Irish Government needs to step in an stop these increases. This increase will ruin Ireland with more and more families losing their houses and people committing suicide as they can’t make ends meet.

    Very sad I say for Ireland, when again we see the same people lining their pockets.It is time people stood up to the Irish government and banks, and even marched against this. It is time people showed their anger at this!!

  8. Darren Rayner at 1:55 pm

    Irish people have become sheep and are not willing to fight against anything. This could be the issue that finally get us united. Bankers have scarred this country for many years to come. Our wounds are still bleeding. They are attacking again before we have had time to heal which hopefuly will be the catalyst that will bring them down.

  9. Christian Higgins at 12:50 pm

    We have far too many banks in Ireland for the size of the country. Interest rate hikes will reduce consumer spending and send more small businesses to the wall.
    Disposable income is way down (for those that still are lucky enough to have a job). Increasing interest rates will only encourage more emmigration, as most people are at breaking point financially and many have passed that point. The banks are not justified in increasing mortgage interest rates at present. Employment levies have been imposed on people to bail out the very same banks.These banks are like old houses in need of repair. It may be less expensive to flatten them, than to continue pouring money into them to prop them up. They are a bottomless pit financially. Some of the banks need to be removed from the system altogether. We dont need all those banks on such a small island with such a small population.
    Sometimes I think we lose sight of the size of our population in Ireland. The banks are reneging on their agreement to help small businesses. The banks are increasing interest rates to generate more income for their coffers, but are hoarding that income and cutting off the supply to businesses that need help the most.

  10. gerard hoey at 11:25 am

    No, rate rises are certINLY NOT JUSTIFIED. Banks dug their own holes. The Taxpayer should not be footing the bill.

    All the deposits of the people should be gathered into one good bank and let the f***ers of bad Banks sink. Good riddance.

  11. Tony Murray at 11:11 am

    Hi There,

    Now banks and building society’s have a hell of olot to answer for in this country.

    Their prime care has always been their profit margin first and foremost and not concerned with their customers at all.

    they have always hired great advertising agencies to portray them as caring instituations etc but they are in this for the huge profits and huge margins they can get and to hell with the ordinary public.

    Also the powers that were supposed to be goverening these banks etc have a lot to answer for and these senior government officials and private senior managers should be brought to bear and made to pay back any bonus or commissions etc and be named and shamed to say the least……

    We are far from out of the resession dont mind what the government say tell the ordinary person on the street who will be in dire straights over the next 2 years at least and more and more small business go to the wall on a daily basis.

    We need to go back to basics with a lot of things in our country and for a start close our borders to non nationals and similar types and close down Mosney centre and other similar sites and send these peolple back to their respective country’s to look after their needs as we have done every thing for them the last 4 to 6 years for FREE and now we need to make cut backs and look after our own needs like the elderly the sick etc who were the foundation of this nation and we seem to have forgotten our own ?

    Wake up Ireland before we sink charity begins at home



  12. Ian at 11:00 am

    Its a complete joke and is basically inverse taxation.
    The government will get money back from the banks due to Nama & bailouts. So they will not increase rate of income tax, let the banks threaten us and get added funds to balance their books from the already hard strapped morgage public.
    A real disgrace this government is and noboby is taking blame.

  13. Dermot at 10:26 am

    No they are not justified and do not play ball with the ordinary joe.this goes for both the government and the banks presently. giving the conditions and trouble ordinary people are in presently surely an exceptional extention of loan terms to all us in tight situations (i.e. all who borrowed in the last five years give an extention of 5-15yrs in loan term )this could solve payment issue for the vast majority of people while satisfying the banks and goverment included. This would be an extrodinary exception, so it will not effect the market place but would lossen the strangle hold on the bubble struck mortagage holders only.

  14. karl kelly at 10:17 am

    yes banks only worry about profit alot of families are suffering im on a tracker mortgage and when it starts going back up its going to hit hard all of us who are in negative equity should be giving an amnesty were what our house is worth now and mortgage value we owe we should be started again at our house valu and it might kick start this mess into something good for all us homeowners

  15. Ken at 10:14 am

    while they are probably justtified to get their bankroll flowing again, the way they are doing it is rubbish…punishing ppl on variable rates while those on trackers stay flush…! it’s not about having made a good decision to take a tracker..that was the toss of a coin for most ppl..! They need to fairly recoup what they are losing on trackers and not punish those on completely stinks and they should be hauled up to sort it out…let 50% of the staff go or find another way to ‘fairly’ get their money back.

  16. Rachel at 10:08 am

    I’m disgusted by the banks. I have a mortgage and feel sick everytime I open the papers. Government cuts have put my job under threat and the banks are squeezing more out of me. I’m now strongly considering leaving this rat infested sinking ship for good.

  17. John at 10:03 am

    Its a pretty bitter pill to swollow. I’ve done nothing wrong yet I’m getting punished for the banks decision to introduce a tracker mortgage product!!!

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