ICS hikes variable rate for existing mortgage holders to take it as high as 6.4pc
Mortgage rates are going up again at ICS Mortgages. Photo: Stock image
NON-bank lender ICS Mortgages is again hiking its mortgage rates for homeowners.
It has announced it is to increase its variable mortgage interest rates for owner occupier mortgages by between 0.20 percentage points and 0.30 percentage points across all loan-to-value (LTV) bands.
This will take the lender’s variable rates to between 6.25pc and 6.4pc, depending on the LTV.
This is similar to increases announced last month by non-bank lender rival Finance Ireland.
ICS buy-to-let mortgage interest rates will increase by between 0.30 percentage points and 0.50 percentage points across all LTV bands.
The rate changes will be applicable to all variable rate applications from August 1.
Applicants who have an existing valid loan offer under agreed terms from ICS Mortgages will not be impacted when the mortgage draw down takes place by July 31.
it also increased its rates in March.
The lender said the latest rate increases reflect the latest interest rate increases by the European Central Bank and the ongoing increases in the cost of financing mortgage products.
“As a prudent and sustainable lender, ICS Mortgages remains committed to offering innovative mortgages and we will continue to review our position on interest rates on an ongoing basis,” it said.
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Broker Michael Dowling said the increases announced by ICS are significant and follow on from similar increases announced by Permanent TSB yesterday on their suite of variable rate products. “The variable rates being charged by ICS and Finance Ireland are comparable to the rates being charged by Pepper and Start Mortgages,” he said.
Mr Dowling expects AIB and Bank of Ireland to increase their variable rates shortly as well.
Earlier this week Permanent TSB said its standard variable rate (SVR) for homeowners will increase by 0.35 percentage points to 4.30pc.
Home-loan Managed Variable Rates (MVRs), which are linked to each customer’s loan-to-value (LTV), will increase by between 0.05 percentage points and 0.40 percentage points.
Following these increases the MVRs on home-loans will range from 3.80pc to 4.30pc.
The bank’s home-loan fixed rates for new business range from 3.90pc to 4.90pc, depending on the fixed rate term and the customer’s LTV.
There are no changes to the bank’s fixed rates for new or existing customers mortgage holders.
Permanent TSB said around 95pc of its new business is fixed rates.
It is also increasing variable and fixed rates for buy-to-let (BTL) mortgage customers and ending fee waivers on legacy current accounts that are no longer available to new customers.
The home-loan and buy-to-bet mortgage rate changes take effect from July 31.
