AIB Mortgage Rate 3.25% Fixed 1 Year

After AIB cut mortgage rates accross the board by 0.5% his week – bringing it’s Variable rate to 4.5% – they have now announced a new lower fixed rate mortgage.
The rate is only available to First Time Buyers – and is fixed for 1 year at 3.25%. The new rate is available from 26th November.
The ECB rate is at 3.25% – and the Standard variable rates are all at least 1.25% above that. It is possible that more ECB cuts could be made – some people predicting it could go to 2% next year. The lenders have cut variable rates after the last 2 ECB cuts – but there is no guarantee they will contine to follow the eCB rate so closely if there are more cuts. Even if they do cut variable rate mortgages in line with ECB cuts – the ECB rate would need to be at 2% to enable borrowers to get a variable rate of 3.25%.

AIB said ” First Time Buyers are essential to the property market but may have been holding back until now. This offer puts them in a position of strength and means that those who want to get on the property ladder now don’t have to wait for future ECB rate cuts.”

Banner - Savings (3.75% IR)

The rate will be available to all first time buyer owner occupiers from Wednesday 26th November 2008 until 31st March 2009, with mortgages to be drawn down by 30th June 2009