BANK OF Scotland (Ireland) has moved again to tighten lending rules and raise mortgage rates due to increased levels of business and higher funding costs.
The bank, which sells mortgages through brokers, suspended new mortgages for buy-to-let investments yesterday, pending the completion of a review, brokers were told in a note.
The bank has reintroduced its fixed-rate mortgages after withdrawing them last month. The rates on the home loans have risen by between 0.11 per cent and 0.2 per cent on two-, three- and five-year fixed mortgages. The two-year fixed rate has risen from 5.16 per cent to 5.36 per cent, while the three-year rate has risen from 5.21 per cent to 5.32 per cent.
"We have been consistently open for business and as a result the volumes of business across our product range have reached record levels," the bank said.
"We are continuing to service existing pipeline whilst balancing our overall portfolio and therefore will reassess individual products over the coming months."
The bank's branch business, Halifax, increased its rates on personal loans by between 0.9 per cent and 1.4 per cent on Thursday.
The rate has risen from 9.5 per cent to 10.9 per cent for loans ranging from €2,500 to €4,999 and from 7 per cent to 7.9 per cent for loans of €25,000 to €50,000.
The changes in lending rates and rules at Bank of Scotland (Ireland) follow similar moves last month when the bank scrapped 100 per cent mortgages and increased tracker rates.
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