AIB HAS BECOME the latest lender to raise its interest rates on standard variable mortgages. Less than a month ago the bank said it was not considering a rate rise.
The bank blamed the 0.5% increase on the cost of funding on the wholesale money market. Existing AIB tracker rate and fixed rate contracts will not be affected by the increase. The rate rises from 2.75% to 3.25% as of tomorrow.
BOI announced a 0.45% increase to its variable rate last week. Both AIB and BOI had already raised rates by 0.5% this year.
ICS Building Society also announced an increase last week - of 0.6%.
In July, Permanent TSB increased its rates for the third time in 12 months, adding another 0.5% to its standard variable mortgage rate. EBS’s rate increase kicked in at the start of this month. The increase – of 0.6% on its variable rate – was the building society’s second this year.
There are an estimated 690,000 mortgage-holders in Ireland.
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