In a move that could save Irish customers about €500 a year, AIB has announced a reduction of its four-year fixed mortgage rate for customers borrowing €250,000 or more by 0.25 per cent from July 3.
The new rate is also available to AIB’s existing mortagage customers with a balance of at least €250,000.
The bank stated that its four-year fixed mortgage rate has become popular with customers seeking the security of a fixed rate, especially at a time when the average house price in Ireland is €335,000.
Additionally, the bank said that switcher customers who meet the criteria and wish to opt for the fixed rate will also benefit from AIB’s €3,000 switcher cash offer.
The move follows the European Central Bank’s decision to cut its main interest rate earlier this month.