AIB considering allowing movers to retain their trackers

AIB considering allowing movers to retain their trackers

State owned AIB are understood to be considering following in the footsteps of Bank of Ireland and Permanent TSB by offering new mortgage deals to existing homeowners who wish to move house while retaining their tracker mortgage.

Chief Executive David Duffy has confirmed that the bank is examining all possible arrangements to allow people to move homes and not lose their tracker rates.

Earlier this week it was revealed that Bank of Ireland and Permanent TSB are set to offer similar packages, with Ulster Bank the only lender before now to allow people to move and retain their tracker.

Under the arrangement, the tracker mortgage rate would be retained for the outstanding balance of the existing mortgage with a new variable or fixed rate being charged on any amount additionally borrowed.

The most recent ECB rate cut means that most people on trackers are now paying just 1.5% – as opposed to those on a variable rate who are paying around 4.5%.

Speaking in Limerick, Mr Duffy confirmed to the Irish Independent that AIB is examining similar proposals to those put forward by Bank of Ireland and Permanent TSB.

He said: “We are looking at the same thing. We are looking at a range of options. We are not rushing into it because we start out with the principle that a tracker (mortgage) is a contractual entitlement.

“We will not vary or try to adjust or try to manage that in any way. Any offer we have can only be implemented in such that it does not disadvantage the customer in anyway.”

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