The troubled lender attracted much criticism when it announced plans to increase the differential on residential and buy-to-let mortgages because of a need to hold more capital.
Around 13,500 customers have been affected by the changes with some customers now facing a doubling of their mortgage payments.
The Bank of Ireland has now confirmed that a number of customers affected by the rate rise have been offered £1,000 to leave the lender.
Mortgage Solutions understands that both residential and buy-to-let customers were offered the cash back offer.
All customers affected by the recent rises have been told the lender will waive all early repayment charges if they want to leave the bank.
The bank has been offering certain customers cash incentives to leave over the course of the last two years and has continued to shrink its mortgage back book, shedding over 20,000 customers during 2012. The bank added that the cash back offer is now closed to other customers.
Last week mortgage broker Caroline Grierson, who has seven buy-to-let mortgages with the Bank of Ireland, hit out at the lender and told Mortgage Solutions that the rate rises had left her feeling ‘cheated’.
