BOI Interest rate increases

I have just received by post notice that my variable rate on my principle dwelling was increasing from 4.25% to 4.5%, with a selection of options to fix for 2,3,5 & 10 years raising to 4.99%. I recently heard that AIB and EBS had reduced their variable rates prior to Christmas. With rates at an all time low, how are BOI allowed to get away with increases?

Brian Kennedy said:

have just received by post notice that my variable rate on my principle dwelling was increasing from 4.25% to 4.5%,

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That is shocking that Bank of Ireland are increasing the variable rate when the ECB has cut it on numerous occasions. They obviously want to force all their variable rate mortgage holders onto fixed rates so that there will be no chance of them moving to competitors who reduce their variable rates. I have just submitted my up to date valuation and hope to be offered the 3.8% fixed rate option. If they fail to do this I will be moving my current account to Permanent TSB and looking out for offers to switch my mortgage. They are treating their variable rate mortgage customers with absolute contempt and there is no consumer protection being offered by the Central Bank.

This is disgraceful! The central bank is a disgrace for not doing something about this - typical of this country.

Hi Brian

Are you sure that you were on a variable rate of 4.25%. Could it have been a fixed rate which is coming to the end of its fixed period?

I think that the variable rate for existing customers is 4.35% but they don't post that on their website.

Brendan

I got on to bank today and the correspondence they sent me was dated 30th Dec 2014, Rates subsequently changed on 5th Jan, so they are re-issuing me with new rates to choose from. Hopefully i'll get down under the 4% barrier. Thanks

Hi Brian

Were you on a fixed rate prior to the letter?

Brendan

Hi Brendan, I was coming off a fixed term, 3 years I think. I fixed it before the ecb started to drop their rates, hence my surprise when their letter had all higher rates, including variable,