AIB rate cut could lead to other lenders following suit

AIB rate cut could lead to other lenders following suit

Mortgage holders finally got some long overdue reprieve from lenders yesterday when AIB, EBS and Haven announced they were reducing their fixed and variable mortgage rates for new and existing customers.

The announcement was something of a landmark as it was the first time that any lender in Ireland has reduced rates in a number of years, despite the fact that the ECB rate is a record low of 0.05%.

While tracker mortgage holders have benefitted from the plethora of rate cuts experienced in recent years, fixed and variable rate customers have seen their rates remain largely unchanged and, in some cases, even seen them increase.

Now though 146,000 existing mortgage account holders are set to benefit from the announcement, with savings of around €334 per annum estimated for those with a mortgage of €200,000.

The 0.25% cut will now hopefully put pressure on other lenders to follow suit.

With a number of first time buyers also in the market for houses the 3.8% rate for a three year fixed rate mortgage and the 3.9% rate for a five-year fixed-rate mortgage will also be welcomed.

Yesterday Bank of Ireland, Permanent TSB, Ulster Bank and KBC Bank all decided to say if they would be following suit, although at least a handful are expected to do so.

 

  • Do you think it’s time rates were cut for those on fixed and variable rates?

 

 

  • Have people on fixed and variable rates been paying for the mistakes of banks?

 

Have your say below…

There are 4 comments for this article
  1. conor hennessey at 8:06 am

    Just recieved my letter offering various fixed and variable rate optionns should i go to variable rate now with boi?

  2. owen at 9:25 pm

    Is that cut for ALL mortgagors…or only home occupiers? and NOT to let cases. ?

    Does any one know about the recent high court decision on variable rates , a decision of Judge Gerard Hogan casting doubt on the validity of those changes ?

  3. Slam at 2:46 pm

    I was visiting France last week and I saw some cool advertisement: mortgage loan to value 90% with a permanent fix rate for 2.8%, et variable for a bit lower. I saw similar figures in Germany few month ago.

    Ireland is not the best country to get your loan … and way behind some EU countries I’m afraid.

  4. Rita at 2:30 pm

    Thankfully I don’t have a mortgage anymore but I think the Irish banks should be absolutely ashamed of themselves. They leave each citizen with a pile of debt due to their bad lending practices, then have the nerve to charge the highest interest rates in Europe to their customers for borrowings to try and get themselves back into profit and give the lowest interest rates possible on savings. They aren’t bankers, they are sharks !!!!

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