13,500 Bank of Ireland customers face repayment hikes

Thousands of Bank of Ireland and Bristol & West customers will see their lifetime tracker rate mortgages increased over the coming months. The lenders, which are part of the same bank, said around 13,500 residential and buy-to-let mortgage customers will be affected. The move will generate millions of pounds in extra revenue each month. Residential customers will see their rates increase from an average of Bank of England base rate plus 1% to 2.49% over base rate and then 3.99% over base rate on October 1. The buy-to-let reversion rate will increase from 1.75% to 4.49% over the Bank of England base rate. Bank of Ireland's terms and conditions show that they case increase their reversion rates if they give customers 30 days' notice. The lender said that the latest rise is due to the significant costs of funding since 2008 and the need for banks to maintain greater levels of capital. March 1, 2013