AIB makes second interest rate hike

Increase applies to fixed rate products

The increase of 0.5% for new fixed-rate borrowers will effectively apply after Christmas because new mortgage borrowers can avail of the existing rates by January 16, AIB said.

AIB has hiked the interest rates it charges its fixed-rate mortgage customers for a second time since the European Central Bank started increasing its official rates this summer, and other mortgage lenders are tipped to follow suit in the coming weeks.

The increase of 0.5% for new fixed rate borrowers will effectively apply after Christmas because new mortgage borrowers can avail of the existing rates by January 16, AIB said.