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Rate rise hits households

COLLAPSED building society Irish Nationwide revealed yesterday that it was increasing its mortgage rate for customers on standard variables. The move will add €100 a month to repayments on a €300,000 mortgage.

The rate will rise by 0.65pc to 4.4pc, with effect from May 1.

The lender recently shut off the option for its customers of locking in to a fixed rate.

Those coming to the end of an existing fixed rate will automatically be put on to the variable rate.

Irish Nationwide blamed the high cost of banking funds for the decision, which it said would add €34 to the cost of monthly repayments on each €100,000 borrowed over 20 years. It last raised its standard variable rate in September of 2010.

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