AIB ups mortgage rates and faces Government takeover

AIB Bank had announced AIB today announced that it is to increase some of its mortgage rates with effect from close of business on 29th March, 2010.

The Bank, facing the prospect of the Irish Government taking a majority of it’s shares announced that variable rate and fixed rate customers face a mortgage hike.

The new pricing structure follows:

Owner Occupiers:
* – Loan to value (LTV) variable rates up 0.34%
* – Standard variable rate up 0.50%
* – Existing Tracker rates will remain unchanged
* – Fixed rates are increasing

Buy to Let
* – Fixed rates are increasing
* – Existing Tracker and standard variable rates remain unchanged

Maurice Crowley, General Manager, Product Management, AIB Bank said; “We understand the financial pressures faced by many existing and prospective home owners and we will make every effort to keep rate increases to a minimum.

“The cost of money in the Retail and Wholesale markets continues to remain high. We have experienced an era of historically low rates but, like all businesses, AIB is now dealing with the reality of the significantly increased cost of raw material. Unfortunately, in such circumstances, it is neither sustainable nor prudent for the Bank to continue to provide mortgage finance at below the cost of funds so rate increases are necessary.

“AIB remains committed to supporting the mortgage market, in particular first time buyers and even with today’s increases, our rates remain among the most competitive in the market.”

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