AIB announces new 0.5% fixed mortgage rate increase

James Cox

AIB has announced a new fixed mortgage rate increase of 0.5 per cent, it comes after it became the first Irish bank to increase mortgage costs after the European Central Bank (ECB) started to increase rates in July.

The moves comes as the bank looks to raise its probability targets.

These changes will not affect any of the bank’s variable or tracker mortgage rates, while existing fixed mortgage rates remain unchanged. More than half of our mortgage customers are already on a fixed rate mortgage.

The new rates are effective from close of business November 25h. However, "to recognise the busy Christmas period customers who draw down their new mortgage by 16th January 2023 can
avail of the previous rates".

Meanwhile, the announcement by Irish Life Health that it is increasing premiums by an average of 4.5 per cent, will come as another cost of living blow to consumers.

The health insurer is blaming what it calls very substantial inflation in hospital procedure prices for the move.

In a statement, it said like many parts of the economy, hospitals have experienced significant increases in costs, which in turn has increased the cost of providing care to patients.

Key contributory factors are the rise in energy and other supply costs, and the recent public-sector pay deal as it applies to healthcare staff.

Managing Director Ger Davis said they recognise the changes will be difficult for customers who are already experiencing price increases in many areas. However, he said they are passing on the lowest possible increase they can.