AIB Increasing Mortgage Rates in November 2012

AIB mortgage customers on the Standard Variable rate will see their monthly mortgage repayments increase from November when the bank raises  the interest rate from 3.5% to 4%

The AIB  interest rate rise takes effect from November 13th and is estimated to affect  about 70,000 mortgage customers.  The increase will see repayments rise by about  €30 a month on a  €100,000 mortgage.

This news comes two days after the bank repaid bondholders  €1 billion.

AIB said it was increasing the  rate to help return the bank to sustainability.

AIB  chief executive David Duffy said  .. “We are acutely aware of the financial impact that any increase will have on our customers. But this decision is essential in order to return AIB to a sustainable operating model and is part of a transformation of the bank’s operating base.”

AIB are also increasing the SV rate on  buy-to-let mortgages  from 4.45 per cent to 4.95 per cent.