Doubt over viability of AIB mortgages

The viability of AIB’s standard rate variable mortgage business is in jeopardy if the level of deposits in the bank don’t increase, according to head of AIB mortgages Jim O’Keeffe.

Speaking at an AIB mortgage breakfast seminar in Cork, Mr O’Keeffe said that AIB’s mortgage business was threatened due to the cost of funding.

“Funding costs have continued to increase due to the issues with wholesale funding,” said Mr O’Keeffe.