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AIB announces plans to cut variable mortgage rates to 3.7 percent

AIB has announced a reduction of 0.25 percent in its variable mortgage interest ra...
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Newstalk

07.42 7 Aug 2015


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AIB announces plans to cut var...

AIB announces plans to cut variable mortgage rates to 3.7 percent

Newstalk
Newstalk

07.42 7 Aug 2015


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AIB has announced a reduction of 0.25 percent in its variable mortgage interest rates for all owner occupier mortgages, and loans with EBS and Haven.

The bank's standard variable rate will fall to 3.7 percent.

It will also offer loan-to-value based variable rates from 3.35 percent and EBS loans from 3.30 percent.

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The bank has also reported a half-year profit before tax of €1.2bn - a €0.8bn increase on the same period in 2014.

Profitability was driven by strong new lending to businesses and home owners and by higher fee income. 

New lending generally increased by €4bn or 56 percent during the first half of the year, though net lending remained flat, signalling that loans are being paid off as quickly as new lending is written.

Today's rate cuts are due to affect some 156,000 mortgage account holders.

This is the bank's third rate reduction in ten months and comes into effect on October 1st.

It has also reported €540m worth of provisions that the bank had made for bad debts have been written back.

AIB’s Chief Executive, Bernard Byrne, said, “We are confirming the latest reduction in mortgage interest rates in tandem with the bank’s announcement of its Half-Yearly Financial Results that strongly reflect our improved financial performance.

"We committed to keep mortgage rates under constant review and to reduce these rates for both new and existing customers if and when AIB’s funding conditions allowed. Fortunately, we are again in a position to do so today."

 


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