Mortgage misery as EBS hikes rate
Published 19/08/2011 | 18:22
Tens of thousands more homeowners face further financial strain as bailed-out lender EBS announced another mortgage rate hike.
The building society, which has been nationalised and merged into Allied Irish Banks, will increase its standard variable rate by 0.25%.
The new rate of 4.93% - or 5.1% APR - is effective from October 1.
The lender said its average standard variable rate loan is 90,120 euro which will mean average monthly payment increases of around 12 euro.
It has 48,000 customers on standard variable rate mortgages.
Dara Deering, director of EBS retail business, blamed a continued increase in the cost of funds to the business for the latest hikes.
Bank of Ireland last week announced plans to increase its standard variable mortgage rate by 0.5% next month.
Both Ulster Bank and Permanent TSB put up their variable rates in February.