AIB HAS ANNOUNCED it will cut mortgage interest rates for the second time in six months, with the reductions coming into effect next month.
The AIB Group confirmed this morning that AIB standard variable rate (SVR) holders will see a reduction of 0.25%, and 0.38% for those with EBS and Haven.
The changes will come into effect in early June, the group said in a statement this morning.
Reductions in Loan-to-Value (LTV) and fixed-rate mortgages will be announced next week.
Outgoing AIB chief executive David Duffy told the Oireachtas Finance Committee last month the cuts announced today were due to be announced.
Last December the bank became the first in Ireland to cut rates in recent years.
Duffy was insistent that the bank must protect its profitability given it’s the Irish taxpayer, as the bank’s largest shareholder, that stands to lose the most.
“We have to be very careful,” he said.
This bank has a margin of 1.6% on its profitability, that is a very slim margin with which to be operating with.
The changes are set to benefit both existing customers, numbering around 158,000, and new customers.
The bank said that a SVR customer with a €200,000 mortgage from AIB with a 25-year term could save as much as €329 per year, rising to €508 for EBS and Haven.
“Existing SVR Customers who choose to move to a three year fixed rate option (3.65%) can achieve savings of €654 per annum with AIB, and €900 per annum with EBS,” the statement read.
The bank will now offer 3.65% for a three year fixed and 3.80% for a five year fixed rate.
Here are more details of the rate reductions:
Click here to see a larger table.
Click here to see a larger table.
Click here to see a larger table.
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