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Banks to write to tracker customers following ECB rate hike

By November 1, 2022No Comments

The main retail banks have said they will be writing to their tracker mortgage customers to inform them of their new interest rates, following today’s rate hike by the European Central Bank.

This afternoon the ECB raised rates by a further 0.75% in its third hike this year.

This means mortgage repayments for those on tracker mortgages will increase.

In a statement, Bank of Ireland said its tracker mortgage rates will increase for all tracker mortgage customers by 0.75%.

It said this change will take effect from 16 November 2022 – for most customers.

“Customers don’t need to take any action right now,” the bank said.

“Bank of Ireland will write to all tracker mortgage customers confirming the new interest rate, the effective date, and their new repayment amount,” it added.

The bank said it has not made any decisions in relation to other products.

“The bank continues to keep all rates under ongoing review, and will clearly communicate any future rate change decisions at the appropriate time.”

Meanwhile, a spokesperson for AIB said it will be writing to its tracker mortgage customers to confirm their new interest rate and effective date.

“AIB keeps our mortgage rates under review,” the spokesperson said.

“Customers with a tracker mortgage linked to the ECB rate saw changes to their interest rate applied in line with their contract following the ECB interest increases earlier this year.

“This will be the case for our tracker customers following this month’s ECB interest rate increase.”

Permanent TSB also said it will contact its tracker customers over the coming weeks to advise them of their rate change.

“Under the contractual terms and conditions of tracker mortgages, the rates on these mortgages automatically increase or decrease to reflect any change in the ECB base rate,” the bank said in a statement.

The bank said it will keep its fixed and variable mortgage rates under review as market conditions evolve.

“The bank is committed to offering rates that are competitive,” it added.

Ulster Bank said it will be writing to its tracker mortgage customers to outline their new rate and inform them of their new monthly repayment amount.

“If at any stage customers require further assistance with their mortgages, they can call 0818 210 275.

“Our lines are open Monday to Friday, 9am to 5pm, excluding Bank Holidays,” the bank said in a statement.

As tracker rates track the ECB refinance rate, KBC Bank Ireland said for customers on a tracker rate any increases will be automatically applied.

For all other mortgages rates, the bank said it will keep any changes under review.

Non-bank lender, ICS Mortgages said it notes the ECB’s decision and added that it is carefully reviewing the potential impact on its mortgage portfolio.

It said it will update customers and brokers accordingly.

While Avant said it has no announcement currently planned.

Finance Ireland declined to comment on its plans.

Article Source: Banks to write to tracker customers following ECB rate hike –  RTE

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