Lenders renege on interest cuts

Mortgage experts are advising homeowners to escape the rising cost of variable rate deals by switching to cheaper lenders or moving to a low fixed rate. Banks and Building societies are closely watching a move by Permanent TSB, who increased its standard variable mortgage rate effective from July 27th 2009. The increase comes even though the European Central Bank (ECB) is expected to leave interest rates on hold for at least another year. The increase has been heavily criticised by the government, whose taxpayer-funded bank guarantee has enabled permanent TSB to survive the global credit crisis. It will not block the rate rise, however, clearing the way for other state-guaranteed institutions such as Allied Irish Banks, Bank of Ireland and EBS to push through similar increases.

 

Standard Variable Mortgage Rates
 

Allied Irish Banks       2.25%
Halifax                          2.40%
Bank of Scotland        2.50%
Bank of Ireland           2.54%
ICS                                2.54%
EBS                               2.63%
Haven                            2.65%
Irish Nationwide          2.74%
 Permanent TSB          3.19%*
KBC                               3.24%
National Irish Bank     3.40%
First Active                     3.85%
Ulster Bank                   3.85%

* Effective from 27th July onwards

 

 

 

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