Irish bank customers face second interest rate rise with deposit rates also on the up

Bank of Ireland customers are facing another mortgage rate rise, it has been confirmed.

Variable mortgage holders around the country have also received written confirmation in recent days of a rise in interest rates to be applied to their mortgages. 

The increase to the European Central Bank (ECB) rate will see interest rates for variable mortgage holders go up by 0.50% for upcoming payments. 

This news came as it was confirmed that fixed rates for new Bank of Ireland customers are to go up by 0.75 percentage points immediately.

For existing customers of the bank coming to the end of a fixed rate, the rise is 0.5 percentage points.

The bank increased its fixed rates in November when they increased by 0.25 percentage points.

However, applicants who already had credit approval and who draw down the mortgage by February 21 can still avail of the previous fixed rates, the bank said at the time.  

There was good news for savers this week, as Bank of Ireland is also increasing its deposit rates.

The rate on its Regular Saver personal deposit account will go up by 0.5 percentage points, allowing customers to earn 0.75pc on Mortgage Saver, Goal Saver and Child Saver accounts, capped at up to €15,000.