ICS Mortgages the latest to raise its lending rates

Interest rates on mortgages are rising the market.

Charlie Weston

NON-bank lender ICS Mortgages has announced another large rise in its mortgage rates.

The lender is increasing its fixed mortgage interest rates for owner occupier mortgages by between 0.60 percentage points and 1 percentage point.

And it is hiking its variable rates by 1.25 percentage points across all loan-to-value (LTV) bands.

Its buy-to-let mortgage rates will increase by between 0.15 percentage points and 1.25 percentage points, depending on the product and the LTV band.

The rate changes will be applicable to all variable rate and new fixed rate applications from May 1.

Changes will not impact existing customers currently on a fixed rate product.

Broker Michael Dowling said the rises “are very significant increases across both the variable and fixed rate options with ICS”.

“The variable rate increases of 1.25 percentage points, ranging from 5.95pc to 6.2pc, are the dearest suite of variable rates on the market.”

Mr Dowling said this will increase the monthly repayments by €185 on a €250,000 over a 30-year term.

The fixed rates increase of up to 1 percentage point will add €155 pm to a mortgage of €250,000 over a 30-year term.

Applicants who have an existing valid fixed rate loan offer under agreed terms from ICS Mortgages will not be impacted when the mortgage draw down takes place by April 30 next, the lender said.

Dilosk-owned ICS said: “These rate increases reflect the evolving interest rate environment and the ongoing upward pressure on the cost of financing both fixed and variable interest rate products.

“As a prudent and sustainable lender, ICS Mortgages remains committed to offering competitive mortgages and we will continue to review our position on interest rates on an ongoing basis.”

Last week AIB subsidiary EBS raised its mortgage rates.

The lender is pushing up its mortgage rates by 0.59 percentage points across its fixed rate residential mortgages and increasing its fixed rates for buy-to-let mortgages.

Some of the fixed rates are going up by 0.75 percentage points.

There is no change to EBS variable mortgage rates.

Just days ago non-bank lender Finance Ireland said it was hiking the interest rates on its three-year and five-year fixed mortgage offers as the squeeze on borrowers and home owners intensifies.

The changes will push the interest on a three-year fixed rate mortgage with a 90pc loan to value to 6.6pc and a five-year fixed rate at the same loan to value to 6.45pc.

Last week the European Central Bank announced a sixth interest rate rise since last summer in a move that will cost those sticking with their tracker mortgages thousands of euro in higher repayments.

Repayments on a typical tracker will have gone up by €1,650 over a full year due to the latest ECB rise of 0.5 percentage points, combined with the previous ones.tra

The hike will also push the cost of new fixed rates, with more pressure on variables also likely.

Rising fixed rates will make it more difficult for first-time to afford to buy a home.

Some 50,000 homeowners are set to come out of fixed rates in the next three years, with financial advisers telling them to break out of these arrangements early and re-fix before rates go even higher.

The St Patrick’s weekend ECB hike will mean repayments on a tracker will have risen by around a third in less than a year.

This will cost a family on an average tracker €1,650 a year in extra repayments.

This is based on the average outstanding tracker loan of €81,300, according to Mark Coan of money guide Moneysherpa.ie. He based his calculations on Central Bank figures.