# Interest rate increase Bank of Ireland



## mrscat (4 Apr 2011)

Has anyone heard when or if Bank of Ireland will be raising mortgage interest rates, am waiting on a mortgage cheque and hoping to get the current rate.


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## Ciara2011 (4 Apr 2011)

Nothing yet on rise in bank interest rates alot of speculation on a few rises this year, they are all waiting to see if ECB at there next meeting which is this month will start the raising of rates.  
It is all a wait and see game, will they won't they.  

If the ECB do raise the rates, the banks usually follow suit very quickly.


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## Curious81 (5 Apr 2011)

I'm in the same boat - waiting for my BOI cheque to be issued any day now. Apparently if they are going to announce an interest rate hike they first try to issue any cheques pending. If there is a rate hike before cheque issue you will need to get a new loan offer which can delay things.


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## mrscat (6 Apr 2011)

Thanks..hope your right on the issuing of cheques before the hike..best of luck


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## Sargent_Duck (6 Apr 2011)

Mind me asking how long you have been waiting for the cheque to issue?? I'm in the exact same boat, handed in our final piece of documentation today and our advisor said the cheque should issue tomorrow, since our solicitor has also submitted all information and requested the cheque....


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## marksa (6 Apr 2011)

Sargent_Duck said:


> ...waiting for the cheque to issue..


 
why o why are they issuing cheques. in the 21st century surely this should be done by electronic transfer? indeed a same day transfer between most banks is a modest fee of about 15-20 euro. why leave things to the risk of paper, the clearing cycle of 1-2 days, the fate cycle of another couple of days. e.g. NIB whom I use have 5 working days before you can draw on cheque lodgement funds. allowing for time waster in post etc. this is a horrendous waste of time. Why aren't you all saying " send a payment to my solicitor's client account number 9xxxxx-xxxxxxxx?


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## Sargent_Duck (7 Apr 2011)

marksa said:


> why o why are they issuing cheques. in the 21st century surely this should be done by electronic transfer? indeed a same day transfer between most banks is a modest fee of about 15-20 euro. why leave things to the risk of paper, the clearing cycle of 1-2 days, the fate cycle of another couple of days. e.g. NIB whom I use have 5 working days before you can draw on cheque lodgement funds. allowing for time waster in post etc. this is a horrendous waste of time. Why aren't you all saying " send a payment to my solicitor's client account number 9xxxxx-xxxxxxxx?



Hi Marksa, I didn't know that was an option... I'm guessing this is exactly what you did and it worked out ok?

_Or_ is this just giving out about the system?


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## Sargent_Duck (7 Apr 2011)

Rates being increased as of next week.

Hopefully the cheque is in the post


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## marksa (7 Apr 2011)

Sargent_Duck said:


> Hi Marksa, I didn't know that was an option... I'm guessing this is exactly what you did and it worked out ok?
> 
> _Or_ is this just giving out about the system?


 
i had an abortive sale, but the proceeds were to be sent electrically to my solicitor


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## NorfBank (8 Apr 2011)

Sargent_Duck said:


> Hopefully the cheque is in the post




If it is then make sure you cash it by next Thursday.

_Bank of Ireland and its ICS subsidiary have also announced that they will be raising their fixed mortgage rates. The increases - ranging from 0.7 to 1.3 percentage points - will come into effect from April 15. Bank of Ireland and ICS tracker rates will rise by a quarter-point from Wednesday April 13._

www.moneybackmortgages.ie


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## docker (8 Apr 2011)

Does anyone know what the new increased fixed rates are from Bank of Ireland? It just says between 0.7 and 1.3% increase.


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## Curious81 (11 Apr 2011)

Sargent_Duck said:


> Mind me asking how long you have been waiting for the cheque to issue?? I'm in the exact same boat, handed in our final piece of documentation today and our advisor said the cheque should issue tomorrow, since our solicitor has also submitted all information and requested the cheque....



It was ~10 working days ago that the cheque requisition went in. Hoping it gets sorted in today or tomorrow.


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## iamaspinner (11 Apr 2011)

ICS rates from Friday April 15th according to our broker:

2 Year 5.25% (1.55% increase)

3 Year 5.6% (1.26% increase)

5 Year 6.0% (1.06% increase)

This is becoming ridiculous. When are they going to stop this? Do they really expect to get many new customers or are they just trying to squeeze everything out of the old ones while they can? We are more than seriously considering pulling out of our buy and putting our money somewhere else, as in another country altogether! How can someone with limited resources (like us, like most people) go into a 2, 3 or even 5 year fixed period to then watch the interest increase like this? What sort of rate would be waiting for us at the end of the fixed period? I know it will level out at some point, but will the level be too high? I still can't believe what I'm seeing......


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## Angelac (13 Apr 2011)

I've been told the new 5 year fixed rate is 5.7%


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## mrscat (13 Apr 2011)

Hi, 

did You get your cheque yet?


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## Curious81 (13 Apr 2011)

mrscat said:


> Hi,
> 
> did You get your cheque yet?



Mine got issued on Monday afternoon but had not arrived with solicitor as of yesterday evening anyway.


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## mrscat (13 Apr 2011)

Just told today that our cheque was gone to print..hope it arrives tommorow...just want to get it before the rates go up on Friday.


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## Curious81 (13 Apr 2011)

Well mine was printed on Monday afternoon but I think it is slower leaving the bank after printing than I was led to believe....


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## marksa (13 Apr 2011)

iamaspinner said:


> ICS rates from Friday April 15th according to our broker:
> 
> 2 Year 5.25% (1.55% increase)
> 
> ...


 
I believe the usual Irish model of hedging and funding fixed rate mortgages is for the bank to "match-fund" the mortgage. i.e. the bank borrows a chunk of fixed rate money from the market. As you can imagine, that has become prohibitively expensive for Irish banks for 2 reasons.

the interbank market for e.g. 5 year swap rate is now approx 3.10%
Irish banks have to pay a credit premium over the swap rate for cash of e.g. 2%
So in total, the Irish bank is paying about 5% for cash to lend it at 5.70%. This is not like variable where they can fund it partly overnight, partly from ECB, partly from customer deposits where the blended cost of funding might be as low as 2.10%

Swap rates can be found here, and shows how they have increased over the last 6 months - in particular 2-3 year.
[broken link removed]


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## mrscat (14 Apr 2011)

Got our cheque today...hope yours arrived


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## devilabit (14 Apr 2011)

Just found out that our cheque wont be issued in time, very disappointed, frustrated and angry.

Our solicitor was instructed weeks ago that we wanted to close as soon as possible and before the rate increase but failed to send in the necessary documentation until last Friday.  When BOI mortgages finally processed the documentation on Tuesday they found that the mortgage reference number was missing from the application so the documents had to be returned to the solicitor by snail mail.  Somehow the documents have yet to be received by the solicitor so as the the rates are changing at the close of business today it will be too late for us to secure the rate before the increase.

Since the contracts are signed I am not sure of what options I have but I do feel very hard done by in this process.  At the end of the day I will still have to pay the solicitor and the bank will end up getting even more money from me so the person losing out is the customer/taxpayer, a normal scenario in modern day Ireland.

Does anyone have any suggestions, are there any avenues for complaints that I could peruse?  To be honest this makes the me want to pull out of the whole house purchase.


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## iamaspinner (14 Apr 2011)

You must be mad alright!! We are mad about the increases but had not reached the point you're at! I was aware of this risk from an early stage, which is why I asked our solicitor and our broker about it. My understanding is that even if you sign the loan contract with the bank, you can change your mind (i.e. pull out) up to the point where the solicitor requests the cheque to the bank. Do you want to change your mind?? I may be wrong but if you solicitor hasn't done it yet, you may still be able to do something about it!


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## Angelac (15 Apr 2011)

Hi Devilabit,

just to say we had to get loan letters reissued this week also.  They were supposedly printed on Friday and went out in Friday's post but I only got them on Tuesday and the solicitor still hadn't received them on Wednesday.  Luckily we were able to just use our loan letters but I find it curious that it would take so long for them to arrive in the post.  Generally speaking if a letter is posted on Friday it will arrive on the Monday or Tuesday at the latest.


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## thedaras (15 Apr 2011)

devilabit said:


> Just found out that our cheque wont be issued in time, very disappointed, frustrated and angry.
> 
> Our solicitor was instructed weeks ago that we wanted to close as soon as possible and before the rate increase but failed to send in the necessary documentation until last Friday.  When BOI mortgages finally processed the documentation on Tuesday they found that the mortgage reference number was missing from the application so the documents had to be returned to the solicitor by snail mail.  Somehow the documents have yet to be received by the solicitor so as the the rates are changing at the close of business today it will be too late for us to secure the rate before the increase.
> 
> ...


I was in a similar situation a few weeks ago, but the bank (KBC) didnt increase the rate,and it was fixed for three years.
Have you spoken with the mortgage lender? Because if they have accepted you ( and this is becoming increasingly difficult) they must have a good view of your financial situation, and were happy to offer you a mortgage, therefore they know you would be accepted elsewhere.
If I were you I would phone the bank and say that you expect them to hold the rate you agreed,and as far as Im aware most will ..my brooker told me that KBC would have honored it even if we had been delayed by a week,so phone your mortgage advisor in BOI ,explain that you understood that the rate had been agreed,that you had based your finances on that rate,that it would appear it was their fault as the solicitor hasnt received the documents and see what they say.
I would advise anyone in a situation like this to use couriers to get the documents where they need to be,this is what I did and it was cheaper than driving in /parking,and it was one way of ensuring that the documents were delivered.


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## devilabit (15 Apr 2011)

thedaras said:


> I was in a similar situation a few weeks ago, but the bank (KBC) didnt increase the rate,and it was fixed for three years.
> Have you spoken with the mortgage lender? Because if they have accepted you ( and this is becoming increasingly difficult) they must have a good view of your financial situation, and were happy to offer you a mortgage, therefore they know you would be accepted elsewhere.
> If I were you I would phone the bank and say that you expect them to hold the rate you agreed,and as far as Im aware most will ..my brooker told me that KBC would have honored it even if we had been delayed by a week,so phone your mortgage advisor in BOI ,explain that you understood that the rate had been agreed,that you had based your finances on that rate,that it would appear it was their fault as the solicitor hasnt received the documents and see what they say.
> I would advise anyone in a situation like this to use couriers to get the documents where they need to be,this is what I did and it was cheaper than driving in /parking,and it was one way of ensuring that the documents were delivered.



The documents were only received by the solicitor today because they were addressed to the wrong Dublin postal code!  We now have grievance with the bank and with the solicitor, as far as im concerned the mistakes that have been made are unacceptable.


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## applevenus (15 Apr 2011)

I'm amazed that anything was sent through the postal service. There is a secure courier system used by the banks and solicitors for this purpose. I had to chase every document with BOI over the last 2 weeks and I have nothing but contempt for the appalling way PTSB treated my requests for statements despite being a customer of theirs since 1984.    
We got our documents signed by the solicitor on Monday and our cheque was printed yesterday. 

Devilabit I'm really sorry that you had such bad luck with this. It's inexcusable that it should have been a problem.


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## thedaras (15 Apr 2011)

devilabit said:


> The documents were only received by the solicitor today because they were addressed to the wrong Dublin postal code!  We now have grievance with the bank and with the solicitor, as far as im concerned the mistakes that have been made are unacceptable.



Well that is not your problem,nor should you be made to pay for this mistake.
Have you spoken to whomever is dealing with your mortgage? Have you spoken with a manager?
If they were incorrectly addressed by the bank,thats their fault,I would be amazed if they didnt honour the agreement you had with them,though not surprised!


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## mrscat (16 Apr 2011)

sorry to hear you didnt get the cheque...my partner and I have had such a stressful couple of weeks. i was on the phone every day to both the bank and the solicitor, I didnt trust the post at all, we picked verything up and drove to the solicitor..it was the only way. I hope that you get the previous rate but we were told that you only get the rate guaranteed when on the day it is issued!!


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## Sargent_Duck (18 Apr 2011)

Ours was issue two weeks ago, it went to the cheque issue dept on a Thursday and received by our solicitor on the Friday  

We're meant to be closing today, so hopefully all the hard work pays off!!


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## Gatekeeper (18 Apr 2011)

Have just rang ICS Building society and they told me that their 2 year fixed rate is 5.25%, their 3 year fixed rate is 5.75% and their 5 year fixed rate is 6.35%.  I asked them how much that would be per 1,000 over 20years and they would not tell me.  They also told me that their variable interest rate has not gone up and is 3.65%. Does anyone have a variable rate mortgage with them at the mo and if so is this the correct rate? Also is there a mortgage calculator where I can work out their fixed rate options?


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## devilabit (18 Apr 2011)

thedaras said:


> Well that is not your problem,nor should you be made to pay for this mistake.
> Have you spoken to whomever is dealing with your mortgage? Have you spoken with a manager?
> If they were incorrectly addressed by the bank,thats their fault,I would be amazed if they didnt honour the agreement you had with them,though not surprised!



My issue with missing out on securing last weeks rate is now with the  branch manager.  If what what was mentioned above is correct and that the 5yr rate is going  to be 6.35% I think we will need to pull the plug on the mortgage at  this late stage, im not going to pay €11k extra just because someone in  BOI sent the documents to the wrong address!


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## snuggles88 (9 May 2011)

Hi There,

I am looking for some information about the above Interest Rate increase. I have just moved into our house after getting a mortgage with BOI and have been charged the 4.75% Fixed Interest Rate through no fault of our own. On the 18th April my Mortgage Advisor informed me that the interest rates were to increase and we had to have our cheque printed before close of business on the 21st April, all documents were in at that stage so there was no delay and the cheque was issued on the 21st April to which my Mortgage Advisor confirmed with me that we got it at the Lower Rate! We got our keys on 29th April still under the impression that we were paying the 3.4% until I received a letter from BOI Mortgages the following week confirming when our 1st Repayment is due and also stating its at 4.75%! After several phone calls and emails my Mortgage Advisor eventually got back to me to say we missed the timeframe because our solicitor didnt lodge the cheque until the 29th April???? Is the rate you get not on draw down date??? I have now found out from BOI Customer Service that the rate changed on the 15th April, so she was completely wrong with the date of increase in the 1st place??? I am at a loss of what to do now, our mortgage has increased by €200 and I am being told that there is nothing that can be done when this situation arose because of the Mortgage Advisor's incompetency and she is still covering herself and placing the blame on the solicitor not lodging the cheque until the 29th April which has nothing to do with it because she got the date and week completely wrong?


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