AIB has today announced that it will cut mortgage interest rates for new and existing customers. The rate cuts will affect variable and fixed interest rates for owner occupier mortgages. AIB will cut variable mortgage interest rates by up to 0.25%.
AIB says that the move will benefit around 146,000 existing mortgage customers. The bank says that for a customer with a mortgage of €200,000 the 0.25% rate cut will offer savings of up to €334 a year based on a 25 year term.
AIB customers with variable rate mortgages will see their rates reduced from 1st December. New customers looking for a fixed rate mortgage will be able to avail of reduced rates from 4th November.
AIB has said that existing variable rate customers will receive a letter in the post over the coming weeks outlining the exact reduction in their mortgage repayments.
Customers with fixed interest rates will not see a rate reduction until their current fixed terms expire.
Customers with tracker mortgages will not be affected because the reduction is not linked to the European Central Bank base interest rate.
This rate cut will mean that the AIB Standard Variable rate will go from 4.40% to 4.15% from December 1st. Customers with a loan to value of 50% or less will see their rate fall form 4.09% to 3.85%.
New fixed mortgage rates
AIB is also introducing new fixed mortgage rates which include a rate of 3.80% for a three year fixed term and 3.90% for its five year fixed term. These new rates offer a cut of up to 1.30% over what is currently available from AIB.
Commenting on today’s announcement, bonkers.ie managing director David Kerr said: “A cut in mortgage interest rates will be very welcome for both existing mortgage holders and new customers looking to buy homes. AIB’s new fixed and variable mortgage rates represent substantial value when compare to the rest of the market and they are market leaders in many cases. It will be interesting to see if other banks follow suit.”
Bernard Byrne, Director of Personal, Business and Corporate Banking, said “AIB is now in a position to reduce variable mortgage interest rates due to the bank’s underlying positive performance and funding cost reductions. The introduction of the Bank’s new fixed rate pricing will provide better value and certainty for customers.’’
EBS and Haven customers will also see a reduction in standard mortgage interest rates of up to 0.25%. EBS and Haven form part of AIB Group.
At bonkers.ie we will have these new mortgages listed for comparison as soon as they go live on 4th November and 1st December respectively. You can compare mortgage interest rates here: