Lender EBS the latest to hike its mortgage rates

AIB subsidiary EBS is the latest lender to increase its mortgage rates, days ahead of another expected European Central Bank rate rise.

he lender is pushing up its mortgage rates by 0.59 percentage points across its fixed rate residential mortgages and increasing its fixed rates for buy-to-let mortgages.

Some of the fixed rates are going up by 0.75 percentage points.

There is no change to EBS variable mortgage rates.

But the lender is increasing the interest its pays on savings across a range of its variable deposit products.

It comes after its parent AIB, and the group’s broker-focused operation Haven, increased mortgage rates last month.

At the start of last month the group increased fixed rates and its variable rates at AIB and fixed rates at its affiliate Haven.

It was the first time a major bank here increased its variable rate since the era of cheap money ended in July of last year, making it the only Irish retail bank to do this to date.

On average, mortgage rates at AIB and Haven went up by 0.5 percentage points.

The ECB is expected to announce another 0.5 percentage point rise in its main lending rates this week. 

The new fixed rates for mortgage borrowers are effective from tomorrow.

Broker Michael Dowling said EBS had increased its key three and five-year fixed rates by 0.75 percentage points. 

This will add € 145 a month to repayments a €300,000 mortgage over a 30-year term.

The green fixed rate is up by 0.65 percentage points.

Customers who draw down their new mortgage by close of business on April 14 can avail of the previous fixed rates, AIB Group said.

EBS will be offering customers increased rates across a range of variable rate deposit products, providing new and existing customers with interest on their savings.

From this week the EBS Family Savings Account will offer a 1pc return (currently 0.10pc) up to €1,000 per month for 12 months.

EBS Children’s and Teen’s Savings Accounts will offer a 1pc return (currently 0.10pc) up to €5,000 and 0.10pc (0.00pc) for amounts greater than €5,000.

EBS Instant Access Account will offer a 0.10pc return (currently 0pc).

It comes a day after non-bank lender Finance Ireland said it was hiking the interest rates on its three-year and five-year fixed mortgage offers as the squeeze on borrowers and home owners intensifies.

The changes will push the interest on a three-year fixed rate mortgage with a 90pc loan to value to 6.6pc and a five-year fixed rate at the same loan to value to 6.45pc.

This increase of 0.75 percentage points will add €145 a month to repayments a €300,000 mortgage over a 30-year term, according to Mr Dowling.

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