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Wednesday, October 03 07:50:18
AIB mortgage customers face their second rise in interest rates in three months. The bank announced late last night that it was increasing the interest charged on its variable mortgages up to 4pc from 3.5pc in November; its second variable rates hike in three months. The latest move to put mortgage interest rates up at AIB will affect one in five mortgage customers at the bank.
This will mean another 30 being added to the monthly repayments for every 100,000 borrowed. The bank said that it was putting the rates up as its mortgage book is loss-making, and it needs to return to sustainability. AIB is nearly wholly owned by the State having received funds to date amounting to 21 billion.
Almost one in ten holders of the bank's residential mortgages is three months or more behind in their payments. AIB chief executive David Duffy said the bank is "acutely" aware of the financial impact that any increase will have on its customers, but that the move is needed to transform its operating base.