Bank of Ireland to increase loan rates

The Bank of Ireland have signaled they may have to increase loan rates to improve the profitability of the business.Chief Executive Richie Boucher said they would have to increase rates on variable rate home loans to offset elevated deposit costs. 70 properties were repossessed during the first half of this year compared to 70 in the whole of last year.

Boucher stated that 3,900 customers out of a 145,000 mortgages have had their loans “modified” in order to help them meet repayments and continue the mortgage.

Demand for new loans at present is according to the BoI muted.

The property site reported there were 0.2% more properties for sale on the market this week. This over-supply indicates that there is a low likelihood there will be a recovery in the housing market in the near future.

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