Non-bank lender ICS increases mortgage rates for third time this year

ICS Mortgages, trading as Dilosk, increases mortgage rates for the third time in 2025. Variable rates for new and existing owner-occupier and buy-to-let borrowers rise by 0.25 percentage points from July 1. The change follows expectations of higher European Central Bank rates next month, which increases wholesale funding costs. ICS previously raised fixed rates in January and March. Nua Money also increased fixed-rate mortgage pricing by 0.14 to 0.25 percentage points. Non-bank lenders cannot access cheaper ECB funding like mainstream banks, so they rely on wholesale markets. ICS’s owner-occupier variable rate moves to 4.35%, while buy-to-let moves to 5.55% to 5.7% depending on loan-to-value. The lender says the adjustments reflect prevailing market conditions and funding costs and will notify customers in writing.

"Non-bank lenders are unable to access cheap funding from the European Central Bank, unlike mainstream banks. They have to source funding for mortgages from wholesale markets, which can be expensive. Banks, on the other hand, can use customer deposits to fund mortgages, giving them a huge competitive advantage over non-bank lenders."

"The move will see ICS;s variable rates for new and existing owner-occupier and buy-to-let borrowers rise by 0.25 percentage points from the start of July. ICS Mortgage's variable rate for owner-occupiers will move to 4.35pc from July 1. The buy-to-let rate will go to between 5.55pc and 5.7pc, depending on the loan to value."

"Michael Dowling of Irish Mortgage Brokers said the increase in the ICS variable rate will add €13 to the monthly repayments for every €100,000 borrowed. In March, ICS increased its three and five-year fixed rates by between 0.35 of a percentage point and 0.5 points. At the start of the year, it increased all its fixed rates rise by between 0.25 percentage points and 0.45 points, depending on loan-to-value bands."

"The lender confirmed the variable rate change and said it will be communicated in writing to existing customers and "our loan offer pipeline with appropriate notice and our website will be updated to reflect the prevailing rates". "The rate adjustments reflect prevailing market conditions and funding costs," ICS said."

Read at Irish Independent