We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Chairman of AIB Richard Pym speaking at the AIB Annual General Meeting late last month. Sam Boal/Photocall Ireland

AIB is cutting its mortgage rates again

It’s the second cut in six months.

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:

PastedImage-84791 AIB Group AIB Group

Click here to see a larger table.

PastedImage-49424 AIB Group AIB Group

Click here to see a larger table.

PastedImage-18189 AIB Group AIB Group

Click here to see a larger table.

Former AIB chief: ‘I’m very sorry… I feel deeply disappointed every day’ >

Read: Enda pledges action on mortgage crisis (and calls Fianna Fáil ‘arsonists’) >

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Your Voice
Readers Comments
    Submit a report
    Please help us understand how this comment violates our community guidelines.
    Thank you for the feedback
    Your feedback has been sent to our team for review.