BANK OF IRELAND is increasing its fixed interest rates by 0.75% for all new mortgage loan drawdowns.

The latest increase follows a 0.25% increase on interest rates in November.

There will also be 0.5% increase for the fixed rates available to existing mortgage customers.

This includes customers who are coming to the end of their fixed rate period and are seeking to re-fix their mortgage, and tracker rate or variable rate customers who wish to move to a fixed rate.

The new rates will apply to all new Private Dwelling Home and Buy-to-Let fixed rate mortgage loans and will come into effect from today.

Variable rates and tracker rates remain unchanged, a spokesperson for the bank noted.

In an email sent to customers today, a spokesperson said the increase is due to the European Central Bank announcing a number of increases to its interest rates in recent months.

There has been cumulative increases of 2.5% in ECB rates since July 2022:

The email notes: “All new mortgage loans approved on or after this date will be subject to the new fixed rates.

“If you have already been approved for a new mortgage loan with Bank of Ireland, and if you draw down on or before 21 February 2023 you’ll be able to avail of the previous rates outlined in the below table.

“In order to draw down by 21 February 2023, all required documents must be submitted by 14 February 2023 and deemed valid by Bank of Ireland.

“If the mortgage loan can be drawn down in stages, the new fixed rates will apply if the first drawdown is made after 21 February 2023.”