ICS Mortgages Hikes Interest Rates for Fifth Time this Year
Non-bank lender ICS Mortgages has raised its interest rates for the fifth time this year, affecting both fixed and variable rate borrowers. The latest increase comes just two months after its parent company, Dilosk, agreed to sell itself to Pepper Advantage.
The new fixed rates will see increases of between 0.45 and 0.5 percentage points, while variable rates will go up by 0.25 percentage points from the start of November. This means borrowers will face higher repayments, with a €300,000 mortgage seeing monthly payments rise by €78 for fixed rate holders and €39 for those on variable rates.
Broker Michael Dowling, of Irish Mortgage Brokers, noted that ICS's variable rates are now 1.35 percentage points higher than the cheapest option available, while its fixed rates are a whopping 2.8 points higher than the market average. The move brings some mortgage rates as high as 5.95%, leaving many borrowers to wonder what the future holds.
ICS explained that the rate increases reflect recent European Central Bank rate hikes and broader funding market conditions, which make it more expensive for non-bank lenders like itself to access funds for mortgage products.