Friday 9 December 2016

The days of variable rate swindle coming to an end for banks

Published 10/05/2016 | 02:30

Losing lots of customers to switching will concentrate the minds of the likes of Bank of Ireland’s Richie Boucher. Photo: Steve Humphreys
Losing lots of customers to switching will concentrate the minds of the likes of Bank of Ireland’s Richie Boucher. Photo: Steve Humphreys

Banks are running out of options in their efforts to keep variable mortgage rates high. Competitive and legislative pressures are combining to leave our overcharging lenders with few alternatives to implementing rate reductions.

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AIB has put the squeeze on its rivals with a fourth 0.25pc reduction in its variable rate in the past 18 months.

The latest cut means annual savings of €320 for someone with a €200,000 mortgage over 25 years. AIB loan-to-value rates, where those with a lot of equity built up in their homes get lower rates, are also coming down, as are its fixed rates. KBC has cut some rates too.

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