Sunday 24 September 2017

John Drennan: AIB to turn screw and hike cost of mortgages

State-owned bank tells TDs of plan to raise its rates for homeowners

John Drennan

John Drennan

ALLIED Irish Banks is determined to increase the cost of mortgages and other products -- despite last week's European Central Bank decision to cut its key interest rate to a record low of 0.75 per cent.

The revelation that the State-owned bank is pressing ahead with price increases comes as a crushing blow for hard-pressed homeowners.

And the fraught relationship between the Government and AIB is expected to deteriorate further in the wake of the new strategy -- outlined by CEO David Duffy -- to restore the bank to profitability.

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