ICS Announces Interest Rate Increase for Floating Rate Clients
Mortgage company ICS will raise interest rates, adding 1.25% to the rate for all homeowner mortgage holders.
The increases will take effect from October 1. In a statement, the company said the increase was due to significant increases in the cost of funding resulting from continued volatility in international financial markets.
ICS said it was also increasing mortgage rates on all variable buy-to-let rates by 0.5%.
The increases mean that a homeowner with an ICS variable rate mortgage with a loan-to-value rate below 70% will see their interest rate increase from 2.45% to 3.7%.
Increases will not impact fixed rates for existing customers or customers with a valid fixed rate loan offer.
“Like all prudent mortgage lenders, ICS Mortgages must ensure that our mortgage products are funded in a stable manner, taking into account changing interest rates,” said Ray McMahon, Chief Commercial Officer of ICS Mortgages. .
“ICS Mortgages remains committed to offering competitive mortgage interest rates. With these rate changes, we continue to offer attractive variable rates for homeowners and rental mortgage holders. We will continue to review our position on variable interest rates on a continuous basis,” he said.
ICS has a small share of the Irish mortgage market, but its decision to raise rates is expected to be followed by other providers in the coming weeks. This follows the European Central Bank’s decision in July to raise interest rates by half a percent, with another half percent hike due next month.
This decision ends a decade of low interest rates in the EU. Even small increases in mortgage repayments will put additional pressure on households as they grapple with the current cost of living crisis.