Finance Ireland to raise variable mortgage rates by 1%

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Lender Finance Ireland is to raise its standard variable mortgage lending rates by 1%.

The company said it had taken the decision in light of the continuing ECB rate rises.

"Finance Ireland has a range of mortgage offerings and customers are advised to contact the lender or a broker or to view the CCPC website if they think they may qualify for a different product or a different rate on their mortgage," it said in a brief statement. Currently the non-bank lender charges variable rates of between 4.75% and 5.9% for loans on a borrower's main home, depending on the loan to value ratio.Two weeks ago, the ECB raised interest rates by a further 0.5%.Finance Ireland has already previously raised its fixed and variable mortgage rates in response to rising lending costs.Later the same month it also temporarily suspended fixed rate mortgage products for periods of 10 years or more to new applicants.

Non-bank lenders have been under greater pressure than the main banks to increase rates in recent months as they are funded from the wholesale markets, where rates have increased considerably.

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