AIB ‘will cut home loans’ twice more this year

AIB will cut its standard variable mortgage rate twice more this year, to below 3%, and while Permanent TSB will cut in the coming weeks, Bank of Ireland will hold firm against “political pressures”, Investec Ireland has predicted.

In a major update on Irish banks, analysts John Cronin and Cian Harty assess plans after the election for a new mortgage arrears regime and pressures on lenders to cut mortgage rates.

The analysts say the Programme for Government struck between Fine Gael and the Independent Alliance grouping of TDs is “essentially a wishlist” which could lead to lenders being pushed towards agreeing “more generous” debt-forgiveness deals with distressed home loan borrowers.