New home owners have to pay an additional 300 euros a year after the AIB announced price increases for their fixed-rate mortgages.
The bank announced an immediate 0.5% hike, but those currently taking out a mortgage have four weeks to withdraw it before it goes into effect, according to Mirror.
Those applying for an adjustable rate mortgage will not be affected.
The new higher rate applies to the AIB, ESB and Haven brands, with planned increases of up to €300.
However, the bank confirmed that the price increases will not affect existing customers, only new and changing customers.
It goes into effect on November 14.
AIB said: “These changes will not affect any of the bank’s variable or tracker mortgage rates while existing fixed mortgage rates are also not affected. More than half of our mortgage customers are already on a fixed-rate mortgage.” reports Mirror.
According to Mirror, The bank said they’re implementing the increase following the European Central Bank’s decision to hike interest rates by 1.25 percentage points since July.
Up until now, AIB only passed on interest-rate increases to customers with tracker mortgages because of contractual obligations.
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