Borrowers hammered three times in rate-rise frenzy
Published 14/10/2011 | 05:00
LENDERS have been hiking variable rates for almost two years, with a string of rises this year.
The European Central Bank has imposed two rises this year, but many lenders have singled out variable rate borrowers with three rises.
The ECB hiked rates by 0.25pc in April, and by the same percentage in June. These rate rises have been passed on to variable rate borrowers, along with other rises of up to 1pc.
AIB is the only lender not to pass on the two ECB rises to its variable rate customers.
The rate-hiking frenzy means some lenders have variable rates approaching 6pc.
Permanent TSB has been the worst offender, with one rise of 1pc. EBS also imposed sharp rises.
Only last week National Irish Bank pushed up some of its variable rates by close to 1pc.
The series of variable rate increases have seen a family on a €200,000 mortgage paying an extra €180 a month.
For the lucky ones on a €200,000 tracker, monthly repayments have gone up by just €60 a month in the same period.
Bank of Ireland, KBC, Irish Nationwide, Ulster Bank and KBC, along with subprime lender Start, have all hit variable rate customers this year.
Operations director of Irish Mortgage Brokers Karl Deeter said: "There is an unfair cost being carried by people on standard variables.
"Banks keep hitting them again and again. I don't think this is healthy or fair and I don't see why borrowers put up with it."