Dublin: AIB has decided to increase interest rates on mortgages again. AIB intends to raise interest rates on new fixed-rate mortgages by 0.5%. More than half of AIB’s mortgages are fixed-rate.
In October, the fixed rate for new home loans was raised by 0.5%, followed by a second rate hike. The European Central Bank had already raised interest rates for borrowers with tracker mortgages in line with the hike.
The increase, according to the bank, will not affect existing fixed-rate mortgage borrowers or those with variable rates. AIB said that those withdrawing their mortgages by January 16 will be charged the previous rates. AIB mortgages, as well as the group’s EBS and Haven brands, will see an increase. Ulster Bank has also announced that fixed rates on some mortgages will be raised.
Since July, the ECB has raised all three rates. The bank intends to set loan interest rates at 2%. It is expected that the ECB will increase the interest rate again in the coming months.
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