ICS Mortgages announces fixed rate increase

James Cox

ICS Mortgages is increasing fixed rates from Friday, they will rise by between 0.25 per cent to 0.45 per cent.

It applies to three and five-year mortgages but does not include variable rate mortgages or existing customers.

ICS cited changing market conditions as the driver of the increase.

Seán Corbett, director of SYS Mortgages, said the decision had "surprised the market".

“ICS, like a number of non-bank lenders, prices its mortgages based on what’s known as the ‘Swap’ rate, which reflects the cost of borrowing in wholesale markets. Those rates have risen in recent months, and that explains the adjustment we’re seeing here.

“This does not automatically signal a broader shift across the mortgage market and we do not expect the main retail bank lenders to follow ICS’s move. They fund a significant portion of their lending through customer deposits rather than wholesale borrowing, which gives them far greater insulation from short-term market volatility."

He added: “Looking ahead, while it’s unlikely that the European Central Bank will reduce rates further in 2026, there is also no indication of any sharp upward movement. As things stand, the very competitive fixed rates currently available are unlikely to disappear overnight.

“For borrowers, the key message is to stay informed but not alarmed. Isolated pricing changes by individual lenders don’t mean the market is turning, and there are still strong options available for those willing to shop around and seek advice.”