AIB is to cut mortgage rates by up to 0.25% from the start of December.
The standard variable and Loan to Value rate reductions will apply to mortgage from AIB, EBS and Haven and will be available to new and existing customers.
“This is a really smart move by AIB as it seeks to position itself ahead of an anticipated mortgage rush before new lending rules take effect from January next. When it comes to choosing a mortgage, interest rates are king!” said Mr. Frank Conway of MoneyWhizz.org, the personal finance website.
The bank said the change would impact 146,000 existing mortgage account holders.
The cut will see the bank’s standard variable rate fall to 4.15% from 1 December, with EBS’ rate dropping to 4.33% and Haven’s falling to 4.35%.
Meanwhile Loan to Value rates at AIB and Haven will fall by 0.24%, with EBS rates falling by 0.25%.
This means that a LTV mortgage of 80% or more will be charged at a rate of 4.25% by AIB and Haven, and 4.2% by EBS.
“This is a direct challenge to Bank of Ireland which led the market with its offer to pay the 1% stamp duty for first time buyer applicants, it would be a major surprise if BoI did not respond with a counter offer” said Mr. Conway