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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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Happy days and just in time for summer. More pizza and more Cider for me. Please click the red thumbs-down as many times as you can :D
PTSB? PtSB worst bank
Best bank for current accounts
1/4% isn’t enough. They should be cutting these rates by 1%. When the rates go up, they never go up by 1/4%.
The EBS rate went up by 1/4% a few times.
Great news for all those mortgage strapped people.
KBC bank greedy pigs won’t cut it rate while charging the rest of other european customers less. We are screwed. I am glad Honohan is going I asked him to considering he has failed all kbc bank customers with a variable rate mortgage. This screw ball government capped credit union interest charges but should do the same with KBC.
Now let’s see the keyboard warriors still find a negative with this and slate the bank etc etc
Still I where near enough. Still a lot higher than the euro zone average. It’s just a token jester to get the government off their backs.
Still higher than their fixed rates
And as obvious as a bus (bar today), here is the first! you do know why a fixed rate is higher than a variable yeah? let’s at least get that
out of the way
Try and find negatives, keyboard warriors? What are you on about. This is a move in the right direction but more needs to come. A quick glance at my summary from 2012 showed I was on 3.24%. I’ll be happier when it comes closer to that figure
PS the fixed are lower than the variable, do a small bit of research
PS the fixed are lower than the variable, do a small bit of research
PS was speaking in general terms. obviously based on this particular bank’s fixed rates, they will be bringing their variable rate down again in the future. No doubt that will be met with negativity also
John fixed rates are 3.65. Which are lower than variable
Are you affected by an SVR mortgage John or are you just a cheerleader for aib?
I don’t think, in this day and age, anybody should be a cheerleader for anyone.
We are all affected by any interest rate changes, whether you have a mortgage or are renting.Such a silly question….bless
FG’s Michael Noonan calls on banks to reduce rates or he will get tough.
AIB which is 99% owned by the State of which FG/Lab are in Government “decides” to cut it’s rates.
FG Michael Noonan claim credit for “forcing” AIB to cut it’s rates. Now if they can get the other banks to do it I would be much less sceptical of this buying of votes.
Great guess I can renew my sky now this soarview is not very good, €30 in my pocket thanks AIB
Bad news for you, the €30 Sky rate went up to €32.75 in February.
Woohoo :)
Richard Boucher won’t be cutting any rates because ‘he’s looking out for the taxpayer’ boi.
.25% is not enough, its still a rip off
AIB borrows at a rate of 0.025%
AIB lend the same money at over 4.0% – it has a margin of almost 4% while other European borrowers borrow at around 2%
Yet AIB was bailed out by The Irish Taxpayers!
Pure greed!
SVR PUBLIC MEETING
JURYS HOTEL BALLSBRIDGE
7TH MAY 2015 -7.30PM.
LET THE GOVERNMENT AND BANKS SEE THAT WE WILL NO LONGER TOLERATE THIS MORTGAGE RATE OVERCHARGING INJUSTICE.
Good to see! Hopefully the reductions continue and other banks follow suit.
Government will claim they did this ,wrong,aib have been losing customers because a certain gentleman said he was thinking of going into banking,6 weeks later noonan says he was considering selling aib.this is to try and stop losing customers. Do not trust this government, remove them with a no vote in endas referendums, it will force a GE,guaranteed.a no vote, siteserv revelations and iw will bring this government down.
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