The main banks here say they will all be passing today’s ECB interest rate hike on to tracker mortgage customers, but variable and fixed rate borrowers will be spared for now.

There are around 200,000 tracker mortgages remaining in the country, while there are 130,000 people whose loans are on variable rates.

In a statement, Bank of Ireland said its tracker rates will increase by the 0.5% announced by the ECB at lunchtime.

“For most customers, this change will take effect from 10 January 2023,” it said.

“Customers don’t need to take any action right now. 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 that no decision has been made in relation to other products and all rates continue to remain under review.

It was a similar story from AIB, which said tracker customers will see their rates change in line with their contracts following the ECB action.

While Permanent TSB also confirmed that it will pass on the rate change to tracker borrowers, as per contracts.

Rates on other products will remain under review, a spokesperson added.

Ulster Bank, which has sold many of its mortgages to Permanent TSB, said it would increase the rates on its remaining tracker mortgages, including offset mortgage rates linked to the ECB rate, with the rises due to take effect from January 18.

KBC Bank Ireland said its tracker rates would also rise and all other mortgage rates are kept under constant review.

Pepper Finance, which services thousands of mortgages on behalf of funds, said tracker rates would also rise, but there would be no change to variable rates at present.

“It will have no immediate impact on variable rate customers, and no decisions have been made on passing on this additional ECB increase,” a Pepper spokesman said.

“We are acutely aware this is a challenging time for many people and our team is on hand to help anybody concerned about their ability to meet the payments, with a broad range of solutions which we can tailor to their individual situation.”

Non-bank lender, Avant, said keeps interest rates under review but only comments on a pricing change at the time of a formal announcement to its customers and brokers.

Irish banks have so far been slow to pass on the four rate increases announced by the ECB since July to their customers.

Source: RTÉ News, December 15 2022