BANK OF IRELAND is set to raise interest rates by 0.25% for new fixed rate mortgages.

In a statement, Bank of Ireland says the move is “in light of recent interest rate increases by the European Central Bank”.

The ECB has raised interest rates three times this year and added that it would likely raise interest rates further in the future as part of plans to reduce overall inflation.

The new fixed-rates with Bank of Ireland are effective immediately, and apply to customers who draw down new mortgages from the Bank.

However, new customers who already have a written quote from the Bank for a lower fixed rate, and who draw down a new mortgage by 9 December, can still avail of the lower rate up to that date. 

Meanwhile, there will be no change to rates for existing mortgage customers, nor will there be any changes to existing variable or tracker rate mortgages.

Existing fixed-rate mortgage customers who may be coming to the end of their current fixed-rate period and are considering re-fixing, can also avail of these unchanged fixed rates.

Bank of Ireland’s statement notes: “As is the case with all rate matters, this approach will continue to be kept under review.”