How do we make decisions when setting the variable interest rates?

The Bank is committed to keeping its variable interest rates under regular review and the Bank has a robust process in place for reviewing interest rates.

Variable interest rates are amended from time to time based on decisions taken by a “Pricing Committee”, which meets as required to review market conditions including all the factors described above. The Pricing Committee consists of senior members of management based in Ireland.

The latest financial information with regard to market conditions, including the factors outlined above, is reviewed in detail together with any other relevant external market information. Based on this review, the Pricing Committee agrees to hold, reduce or increase the variable interest rates as deemed appropriate.

Why do we have different variable interest rates?

Different variable interest rates apply to different mortgage products. In addition, various discounts may be applied to the variable interest rates dependent on the specific terms of individual mortgage agreements.

Can a customer move to a different type of interest rate or a lower interest rate with the Bank?

No, on 31st October 2013 Danske Bank announced the closure of its personal banking operations in the Republic of Ireland. Following this announcement, Danske Bank in the Republic of Ireland no longer offers borrowers the option to switch to alternative mortgage products.

Other lenders may offer a broader range of mortgage products and we would encourage customers to regularly review all mortgage products offered by other lenders.

Should any customer wish to discuss their accounts, contact details are available at www.danskebank.ie

Warning: If you do not meet the repayments on your credit agreement, your account will go into arrears. This may affect your credit rating, which may limit your ability to access credit in the future.

Warning: You may have to pay charges if you pay off a fixed-rate loan early.

Warning: Your home is at risk if you do not keep up payments on a mortgage or any other loan secured on it.

THE PAYMENT RATES ON THIS HOUSING LOAN MAY BE ADJUSTED BY THE LENDER FROM TIME TO TIME

You must be 18 years of age or over to get a Home Loan. Lending Terms & Conditions apply. Security in the form of a mortgage over your home is required.

Personal Loans Rates

*APR - Annual Percentage Rate

Example
As of the 16th September 2013 a Variable Rate Personal Loan of €1500.00 over a period of 12 months at a rate of 12.65% (13.41% APR*) will result in a total amount payable of €1604.76. Monthly instalments would be €133.73. There are no additional charges applicable when the required repayments are maintained.

These rates are provided for information only and do not form part of an advertisement.

EURIBOR®

EURIBOR® is the rate at which wholesale funds in euro could be obtained by credit institutions in the EU and EFTA countries in the unsecured money market. EURIBOR® is a critical interest rate benchmark authorised under the EU Benchmarks Regulation (BMR). The European Money Markets Institute (EMMI) administers EURIBOR® and is responsible for the calculation, methodology and publication of the rates. EURIBOR® is published on every TARGET day and the rates are available at https://www.emmi-benchmarks.eu/euribor-org/euribor-rates.html.

The interest calculation day count convention used on the euro area money markets is actual days/360 days. Previously the EMMI also published a separate EURIBOR® reference rate for an actual days/365 days day count convention, which was discontinued as and from 31 March 2019.

Danske Bank convert the published EURIBOR® reference rate to an actual days/365 days rate for loans with the EURIBOR® reference rate.

Prime Rate

Danske Bank's Prime Rate (IRL): is set with reference to the three-month EURIBOR® rate available at https://www.emmi-benchmarks.eu/euribor-org/euribor-rates.html; it is reset on a weekly basis as follows:

• the average of the three-month EURIBOR® rate for each of the days in the preceding week is calculated;
• the average at (i) above is rounded up to the nearest 1/10th using normal rounding; and
• 130 basis points are added to the rounded average at (ii) above to give the Danske Bank's Prime Rate (IRL) for the following seven days. Bank holidays are treated as rate change dates, (saving Christmas period close). When a rate is not published the rate from the previous day is included in the average.