herald

Thursday 17 August 2017

AIB mortgate holders' joy as rate cut 0.25pc

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CHRISTMAS has come early for thousands of mortgage-holders at AIB who will benefit from a 0.25pc rate cut.

The bank said that 146,000 existing mortgage account holders stand to save on their repayments thanks to the cut.

The change in the rate comes into play from the beginning of December and also applies to homeowners who have a mortgage with EBS and Haven - also part of the AIB group.

The standard variable and Loan to Value rate reductions will be available to new and existing customers.

variable

It is the first time variable rates have been cut in years, despite the European Central Bank rate being cut twice this year. The ECB rate is now at a record low of just 0.15pc

The move will mean savings of €330-a-year for a family with an AIB variable mortgage of €200,000 over 25 years, the bank said.

The cut will see the bank's standard variable rate fall to 4.15pc from December 1, with the EBS rate dropping to 4.33pc and Haven's falling to 4.35pc.

"AIB is now in a position to reduce variable mortgage interest rates due to the bank's underlying positive performance and funding cost reductions," said Bernard Byrne, director of personal, business and corporate banking, AIB Group.

"The introduction of the bank's new fixed rate pricing will provide better value and certainty for customers."

The group is also introducing new fixed mortgage rates which include 3.80pc for three-year fixed rate and 3.90pc for five year fixed-rate.

AIB said existing fixed-rate customers will not be impacted until their current fixed-rate term expires but will have the option to fix again at the new rates.

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