Homeowners face mortgage bill hike as AIB ups rates

THOUSANDS of homeowners will be hit with an average hike of around €52 a month on their mortgage bill following a decision by AIB to increase interest rates.

One in three of the bank’s customers will be affected by the move to increase standard variable rates (SVR) by 0.5% from today. It is increasing fixed rates by up to 0.69% for new customers but those with an existing fixed rate will not be affected.

The move will mean an extra monthly payment of €77.98 for a person on a €300,000 new mortgage rate of 2.75%. The homeowner will pay an extra €935.76 a year for the mortgage or €28,072 more over the lifetime of a 30-year loan.