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.