The European Central Bank last week confirmed that it is implementing a 0.5% interest rate increase. As a result, Bank of Ireland is announcing a number of interest rate changes.
Mortgages
Tracker mortgage rates will increase for all tracker mortgage customers by 0.5%. For most customers, this change will take effect from 10 August, 2022. Bank of Ireland will write to all tracker mortgage customers confirming the new interest rate, the effective date, and their new repayment amount.
Deposits
Where negative interest rates are currently applied to customer balances, this will come to an end. This change will take effect from 3 August, 2022. All other products are unaffected.
Customers don’t need to take any action right now. Bank of Ireland will write to them confirming the new interest rate, the effective date, and their new repayment amount.
Customers who pay their mortgage by direct debit won’t have to do anything at all because the direct debit for the mortgage will automatically change.
According to bankers and analysts, the increased Irish rates can be attributed mainly to the fact that the State’s banks must hold much higher levels of costly regulatory capital in reserve against their home loans. This is the legacy of the 2008 domestic property crash and subsequent arrears crisis.