AIB is cutting its 2 year fixed mortgage rate by 0.55% to 5.20% and its 3 year fixed mortgage rate from 0.25% to 5.20%.

These rate reductions strongly demonstrate that AIB remains very much “open for business” to potential home buyers.

While mortgage business across the market remains lower this year than in 2007, AIB has seen a pickup in demand in quarter 2 2008 v quarter 1 2008 with a 15% increase in mortgage sanctions and a 30% increase in mortgages drawn down.

Customers are clearly already finding AIB’s mortgage offerings attractive, competitive and available. These new rates will provide an even more compelling offering for customers and also position AIB to continue to increase its market share of mortgage business.

AIB’s fixed rate options are growing dramatically in popularity among its mortgage customers. These new rates provide market leading offerings in a product that many customers clearly prefer in the current volatile market conditions.

Donal Forde, Managing Director, AIB Bank, said: “These rate cuts give customers the best prices in the market for products they have shown us they want. Fixed rates give stability and increased security in the present market and are particularly helpful to first time buyers who may be working to a tight budget in their first few years as home owners.

“AIB remains focussed on continuing to grow our market share of mortgage business. Our lending criteria remain unchanged and we have both the capacity and appetite to build on the progress already made this year.”