AIB has announced that it will no longer offer Tracker Mortgages to new mortgage applicants, effective from close of business on Friday 10th October 2008.
In a press release on Friday afternoon, AIB said that the Tracker Mortgage product has been under review because of the continuing high cost of funds in the market. Tracker Mortgages are priced off the ECB rate, but funded at money market rates, which given current market conditions is unsustainable.
Existing customers with Tracker Mortgages are not affected. Customers who currently have an offer of a Tracker Mortgage, but which is not yet drawn, will still be able to avail of the Tracker Mortgage within the terms of their loan agreement.