By Business & Finance 
The Irish bank announces its fifth consecutive reduction in three years as its standard variable rate (SVR) is down to 3.15%.
Customers will see an annual repayment saving of €315 on €200,000 mortgages over 25 years. This will yield a lifetime interest payment saving of €7,800 on the same mortgage.
The bank has also added to its fixed rate product offering with a new seven-year fixed-term rate which is the most competitive on the Irish market at 3.5%. This will allow customers obtain medium-term certainty. Also announced was a 0.5% reduction on the five-year fixed rate. AIB loan-to-value (LTV) variable rates are now as low as 2.75% which generates profits for both new customers coming in and longstanding, existing customers.
Alterations to fixed rates will come into play on Monday 18 September, 2017 while SVR and LTV alterations are set for a Wednesday 1st November, 2017 date.
Robert Mulhall, Managing Director of Retail and Commercial Banking in Ireland, said: “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.
“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 savings. 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.”
