AIB to increase standard variable mortgage rate

AIB to increase standard variable mortgage rate

AIB are set to increase their standard variable mortgage rate by 0.5% to 3.5%.

The State-owned lender, who had the cheapest standard variable mortgage rate in the country, has also announced that they will be closing 45 branches in the coming months. The rate increase will come into effect on September 3rd.

The decision comes after AIB published its results for the first half of 2012 today, which show an operating loss of €1.1 billion, a fall of 64% from the first half of 2011.

The bank’s provision for bad debts in the first six months of the year is €900m, a drop of 70% from the first half of 2011.Customer deposits held at the bank increased by €3 bn between December 2011 and the end of June.

The bank notes that it has reduced its reliance on ECB funding by €6bn or 20% since the start of the year.

Results for last year published in March showed the bank made a loss of €2.3 billion in 2011, down from over €10 billion in 2010.

There is 1 comment for this article
  1. Paddy at 6:30 pm

    This increase should help bring house prices back in line with reality.

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