Bank of Ireland increases fixed rates – but only for new customers (Nov 2022)

[Paul F]

Bank of Ireland hikes fixed mortgage rates for new customers following ECB move

Lender increases rates by 0.25 of a percentage point, but existing customers refixing mortgage will not be affected for now

www.irishtimes.com

• Only a 0.25% increase
• The increase only applies to new customers, not to existing BOI mortgage customers who want to fix/re-fix (for now)
• "New customers who already have a written quote from the bank for a lower fixed rate have until December 9th to draw down a mortgage on those terms."

Existing customers electing to move on to a fixed-rate product with the bank, and those rolling off fixed-rate periods, are not affected by the increase for the time being. A spokesman for the bank declined to comment on how long existing borrowers would continue to have this advantage over new customers, other than to say that it would be “kept under review”.

 

[Brendan Burgess]

That turns the whole "discriminating against existing customers" on its head.

Now I am completely confused.

Brendan

 

[Paul F]

My guess is that they are putting BOI customers on notice that time is running out to fix/re-fix on current BOI rates. Maybe it is to avoid any backlash of the type that Finance Ireland got – although this situation is a bit different to that.

 

[Paul F]

Permanent TSB tipped to follow Bank of Ireland and AIB in hiking fixed-rate mortgages

It comes as Bank of Ireland announced that it is introducing a 0.25% rate increase for its fixed-rate mortgage products

www.irishexaminer.com

 

[Sarenco]

My guess is that they are putting BOI customers on notice that time is running out to fix/re-fix on current BOI rates. Maybe it is to avoid any backlash of the type that Finance Ireland got – although this situation is a bit different to that.

Nah, it’s all about messing with Brendan’s head.

 

[MsCutha]

As a newly switched over BOI mortgage customer, I’m delighted to see this.
BOI could have their staff snooping on this website and have decided to treat their existing customers right. So in a roundabout way @Brendan Burgess have brought change to the way boi treat existing customers

 

[lff12]

It wouldn't (or shouldn't) make sense to any lender to make it harder for their existing customers to repay. So the risk is shifted by placing the burden on new customers (who they cherry pick anyway) rather than expecting existing customers to pick up the tab.