ICS raises its fixed rates (Mar 2022)

I was expecting this to happen, but not this soon:


Is this the first rise in fixed rates?


(I signed a Loan Offer from Avant at 1.95%, I got a jump when I saw this headline just now!!!)

I think this is the first rise. It is a clear sign of things to come IMO

Protocol said:

I signed a Loan Offer from Avant at 1.95%,

Click to expand...

Is the rate guaranteed or can it change before drawdown?

You have me worried.

I signed Loan Offer on Friday, the sol indicated she is hoping for drawdown on Wed 16-Mar.

That date seems a bit ambitious.

I am reading the Loan Offer now.

Avant Loan Offer
6.3 Fixed Interest Rate
6.3.1 The Lender may at its absolute discretion permit the Borrower to avail of a fixed rate
in respect of all or any part of the principal sum borrowed.
6.3.2 In the case of a Fixed Interest Rate Loan, the following conditions will apply:-
(a) The rate of interest applicable to the Loan will be fixed, subject to 6.3.2(b), from
the date of drawdown at the rate and for the period specified in this Loan Offer;
(b) The fixed rate of interest set out in this Loan Offer is the fixed rate which would
apply were the Loan drawn down today. There is no guarantee that the fixed rate
so stated will be available for the fixed period selected by the Borrower at the
date of drawdown. The actual fixed rate that shall apply shall be the Lender's
fixed rate available for the fixed period at drawdown. The actual fixed rate at
drawdown may be different from the fixed rate of interest set out in this Loan
Offer. A rate change may result from a change in your circumstances, a change
in the rates that the Lender generally makes available to customers, a change in
the value of the property and/or a change in funding rates to the Lender.
(c) The Borrower on the expiry of the fixed rate period may, by prior notice in writing
to the Lender, opt to choose a fixed interest rate for a further fixed rate period if
such an option is made available by the Lender and on terms and conditions as
may be specified by the Lender. Where such an option is not made available by
the Lender or, if available, where the Borrower fails to exercise the option, the
interest rate applicable will be the variable rate of interest which may be
increased or decreased by the Lender at any time, and in this respect, the
decision of the Lender will be final and conclusively binding on the Borrower.

Any idea of when lenders like AIB will move their rates ? last week there was consensus that ECB were not going to raise rates,, what is going on...

AFAIK, the ECB set the short-term interest rate (weeks/months)

This influences variable mortgage rates



Longer-term fixed mortgage rates are linked to longer-term bond yields, like 5yr and 10yr bond yields.

These LT bond yields are moving up?

Protocol said:

Avant Loan Offer
6.3 Fixed Interest Rate
6.3.1 The Lender may at its absolute discretion permit the Borrower to avail of a fixed rate
in respect of all or any part of the principal sum borrowed.
6.3.2 In the case of a Fixed Interest Rate Loan, the following conditions will apply:-
(a) The rate of interest applicable to the Loan will be fixed, subject to 6.3.2(b), from
the date of drawdown at the rate and for the period specified in this Loan Offer;
(b) The fixed rate of interest set out in this Loan Offer is the fixed rate which would
apply were the Loan drawn down today. There is no guarantee that the fixed rate
so stated will be available for the fixed period selected by the Borrower at the
date of drawdown. The actual fixed rate that shall apply shall be the Lender's
fixed rate available for the fixed period at drawdown. The actual fixed rate at
drawdown may be different from the fixed rate of interest set out in this Loan
Offer. A rate change may result from a change in your circumstances, a change
in the rates that the Lender generally makes available to customers, a change in
the value of the property and/or a change in funding rates to the Lender.
(c) The Borrower on the expiry of the fixed rate period may, by prior notice in writing
to the Lender, opt to choose a fixed interest rate for a further fixed rate period if
such an option is made available by the Lender and on terms and conditions as
may be specified by the Lender. Where such an option is not made available by
the Lender or, if available, where the Borrower fails to exercise the option, the
interest rate applicable will be the variable rate of interest which may be
increased or decreased by the Lender at any time, and in this respect, the
decision of the Lender will be final and conclusively binding on the Borrower.

Click to expand...

Seems clear enough you're not guaranteed that the rate stated in the loan offer will be available when you come to draw down the mortgage.

I wonder how it works in practice, especially if you've received the offer, and have signed & returned it. How and when would you find out the rate has changed?

I'm in the same position with an Avant loan offer letter arriving next week. Glimmer of hope from the Independent re ICS rates:

The changes will not impact existing customers currently on a fixed rate or variable rate, or applicants who have an existing loan offer under agreed terms from ICS Mortgages.

Click to expand...

Will all increase the % over the next few months ???

time to plan said:

I'm in the same position with an Avant loan offer letter arriving next week. Glimmer of hope from the Independent re ICS rates:

Click to expand...

I'm in the same club. Loan offer arrived today, going to be a fun few days/weeks(or whatever the correct unit of time it is to measure a mortgage switch).

It might be wishful thinking on my behalf but Avant may be less sensitive than ICS to prevailing rates. Remember Avant were the ones who came in and undercut the market with 1.95% ICS just price matched.

The Irish Examiner article on the ICS rises said they "had to act at an early stage because of the way it sources its wholesale funds" and that "it has made its move a number of months before other bank-based rivals because it takes its wholesale funding from a smaller pool of investors" so there may be factors impacting ICS that aren't as acute for other lenders.

https://www.irishexaminer.com/business/economy/arid-40828568.html