Wednesday 24 May 2017

Mortgage company to increase rates by up to 0.6pc

Charlie Weston

Charlie Weston

HAVEN Mortgages, the broker-focused division of EBS, is set to hike its standard variable rates by 0.60pc for existing customers and its fixed rates by up to 0.3pc, the Irish Independent has learned.

The new rates take effect from May 7.

The changes will see the three-year fixed rate for existing customers jumping from 4.64pc to 4.75pc.

Those existing customers of the lender who want to lock in for five years will see a slight fall in the rate from May to 5.21pc, but mortgage brokers said this was still one of the most expensive fixed rates in the market.

The 10-year fixed rate for existing residential customers is set to rise by 0.30pc to 6.45pc.

There are also set to be rises in variable rates that are based on the percentage of the home being borrowed. These loan-to-value rates are due to rise by up to 0.39pc.

Rise

Rising also are the fixed rates for new customers, but these rates are set to remain around 1pc lower than the rates available for existing customers who want to fix.

Karl Deeter of Irish Mortgage Brokers questioned why Haven's owner, building society EBS, was charging existing customers so much for fixing while being a mutual, or members-owned, organisation.

A spokeswoman for the lender had no comment to make on the rate rises.

EBS is due to announce today that it is increasing fixed rates for new customers by 0.3pc.

Each EBS member is offered a different fixed rate depending on a number of factors.

Irish Independent

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