In a recent announcement AIB have said that they plan to cut mortgage rates by up to 0.25% from December.
It is believed that the standard variable and Loan to Value rate reductions will apply to all mortgages from AIB, EBS and Haven. AIB also say that the cut will be available to new and existing customers. The bank claims that the change will effect up to 146,000 existing mortgage account holders.
The bank states that the cut will see their standard variable rate fall to 4.15% from the 1st of December, it will also see that EBS rate dropping to 4.33% and Haven’s falling to 4.35%.
Meanwhile, it is understood that Loan to Value rates at AIB and Haven will fall by 0.24%, with EBS rates falling by 0.25%. The proposed changes will also mean that a LTV mortgage of 80% or more will be charged at a rate of 4.25% by AIB and Haven, and 4.2% by EBS.
The bank says that customers with LTV mortgages below 50% will have a rate of 3.85% at AIB and Haven, or 3.8% at EBS. AIB’s fixed mortgage rates are apparently set to be reduced from the beginning of December, with the one-year rate for existing business falling to 4.15%.
It is also thought that anyone with a five-year fixed rate at any of the three lenders within the AIB Group will see fall to 3.9%, from a previous level of 5.2%.
The move comes after AIB’s director of personal, business and corporate banking, Bernard Byrne, said the that bank was able to make these reductions “due to the bank’s underlying positive performance and funding cost reductions”.
Mr Byrne also stated that the new fixed rate pricing would “provide better value and certainty for customers”.