End to falling mortgage rates hard to stomach
Irish borrowers have been more burdened by interest than continental peers for years
Bank of Ireland: The good times are coming to an end for clients and they shouldn’t expect further reductions in mortgage costs.
It was good while it lasted, but on Monday, one of the State’s pillar banks looked to draw a line under the recent downward trend in mortgage rates, which have helped ease the burden on homeowners. But is the move justified?
Andrew Keating, chief financial officer of Bank of Ireland, told homeowners – or at least those who are customers of the bank – that the good times are going to come to an end, and they shouldn’t expect any more reductions in the cost of their mortgage. “My expectation is that the price of mortgages, particularly those longer-duration mortgages, will increase,” he said at the publication of the bank’s annual results, putting a dampener on anyone hoping for a bit of a lift to their household finances. A 50 basis-point (half a percentage point) drop in mortgage rates would save a homeowner with a €200,000 mortgage about €53 a month – or almost €20,000 over the life of a 30-year mortgage.