Top banks hike rates in new blow for homeowners

[Vecais]

http://www.independent.ie/business/p...s-1408052.html

HOMEOWNERS were left reeling yesterday after AIB said it was increasing its mortgage rates by up to 0.6pc, while it emerged Bank of Ireland is hiking its fixed rates by up to 1.15pc.

AIB will increase the interest rate on its tracker mortgages for new customers by 0.4pc in a move that will add up to ?70 a month to the repayments on a ?300,000 mortgage.

The bank has also hiked the rates it charges on a number of its fixed rates by up to 0.65pc. Its two-year fixed rate will go from 5.15pc to 5.75pc.

And rival Bank of Ireland is understood to be set to announce today that it is increasing its fixed rate mortgages by between 0.54pc and 1.15pc.

A rise of 1.15pc represents more than four increases in European Central Bank rates.
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