AIB continues to offer the best value in the mortgage market by recently announcing a 0.25% reduction in its Standard Variable Rate (SVR), the fifth rate reduction for existing customers in three years.
Based on this, a customer will see an annual repayment saving of €315 on a €200,000 mortgage over 25 years. At current rates, this represents a lifetime interest payment saving of approximately €7,800 on the same mortgage.
AIB has also added to its fixed rate product offering with a new 7-year fixed term rate, the most competitive on the Irish market at 3.5%, to offer customers who desire medium-term certainty that option.
This is accompanied by rate reductions across fixed rates, including a 0.5% reduction in the 5-year fixed rate. AIB loan-to-value (LTV) variable rates are now as low as 2.75%, resulting in significant savings for new and existing customers. Fixed rate changes came into effect on September 18th while SVR and LTV changes will apply from November 1st, 2017.
According to AIB Shannon mortgage advisor Willie Shortiss, “Our strategy, when conditions allow, is to pass on variable rate reductions to both new and existing customers and we continue to do that. Therefore existing SVR customers will automatically benefit from these new variable rates. We have cut our rates over the last three years by 1.25% for SVR customers.”
Willie commented, “AIB’s market-leading variable rates provide the best of value, while our competitive fixed offerings allow new and existing customers to fix their rates if that’s what they are looking for.
“These improvements in variable rate offerings benefit over 100,000 customers, leading to very significant annual saving. The impact of the five rate reductions on a mortgage of €200,000 over the last 3 years is to save the customer approximately €1,500 per year, based on this rate reduction.”