AIB HAS CUT its standard variable mortgage rate for customers.

The bank said that it was cutting its standard variable rate (SVR) by 0.25%.

It said that this would result in an annual repayment saving of €315 on a €200,000 mortgage over 25 years.

This is the fifth time the bank has cut its rates in the past three years.

“Our strategy, when conditions allow, is to pass on variable rate reductions to both new and existing customers and we continue to do that,” said managing director of retail and commercial banking in Ireland Robert Mulhall.

Therefore existing SVR customers will automatically benefit from these new variable rates. We have cut our rates over the last three years by 1.25% for SVR customers.

The bank also introduced a seven year fixed rate of 3.5% for mortgages.

The Irish government had owned 99.9% of AIB but recently sold off a large portion of its shares in the bank in June. The bank’s Initial Public Offering (IPO) put its value at €12 billion.

The state sold off 28.75% of its shares in AIB for €3.4 billion

Davy Stockbrokers said that the bank’s cut in its rates “marks a continuation of the competitive environment evident in the market for some time, albeit the magnitude (and so soon after the IPO) is earlier than expected”.

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