AIB GROUP has announced a hike in mortgage interest rates in response to the hikes seen this month from the European Central Bank (ECB).

The group, which includes EBS and Haven Mortgages, said it will introduce an “average weighted rate increase” of 0.46 percentage points starting tomorrow.

The increases will range between 0.15 and 0.7 percentage points. For a five-year fixed term mortgage with over 80% loan to value, for example, the increase will be 0.7 percentage points.

Both AIB and Haven’s variable mortgage rates will increase by 0.65 percentage points and EBS’s variable mortgage rate will increase by 0.45 percentage points.

Earlier this month, the ECB increased interest rates, for the eighth consecutive time, by 0.25 percentage points which increased its base deposit rate to 3.5%.

AIB group added: “Customers who draw down their new mortgage by close of business 28th July 2023 can avail of the previous fixed rates.”

There are no changes for customers with a tracker mortgage linked to the ECB rate. Additionally, there are no changes to customers with a Green Mortgage fixed rate, which are for homes with an energy rating of B3 or higher.

AIB Group added that EBS and Haven’s “cashback offers” will be extended. The EBS 3% Back in Cash and Haven €5,000 cashback offers will now expire 31st December 2024, instead of the same date but this year.

Last week, another Irish bank, Permanent TSB, also increased their variable mortgage from 31 July between 0.05 and 0.4 percentage points.