Following on from two further interest rate increases, totalling 1%, announced by the European Central Bank (ECB) in December 2022 and February 2023, Pepper will start notifying certain customers this week by letter of an additional 1% increase in their variable mortgage rate. This latest increase for variable mortgage rates continues to be less than or equivalent to the increase in ECB interest rates announced to date.
The five consecutive ECB interest rate rises, totalling 3% since July 2022, have regrettably necessitated these increases being passed on to the majority of the 21,000 residential variable rate mortgages, serviced by Pepper on behalf of its clients.
The average rate across these mortgage loans is approximately 5.2% (as at 31st Jan 2023), noting some loans will have a higher rate and some loans will have a lower rate.