AIB Group increases switcher payments by 50% as wave of fixed-term mortgages set to end

Around 70,000 mortgage holders will have their fixed rate expire this year, with new rates set to be significantly higher

Those coming to the end of their fixed-term are paying back their existing mortgage loans at rates of around 2.25%, however, new fixed-rate mortgages will be significantly costlier even if ECB official rates fall sharply by the end of the year.

AIB Group said it will increase the payment for customers who move a mortgage to AIB, EBS and Haven ahead of an expected upswing in switcher market activity. 

Announcing the increase on Monday morning, the group said it would raise the payment available for eligible customers by 50% from €2,000 to €3,000 to help "cover costs associated with switching."

Around 70,000 mortgage holders will have their fixed rate expire this year, with the increased payment from the AIB Group pointing to a potential heat-up in the switcher market as customers search for alternative options. 

In recent years, many customers in Ireland opted for security, with around 50% locking into fixed-rate mortgage terms, AIB said.

"Many of these terms may now be coming to an end and as a result, the switcher market is likely to become more active again."

Those coming to the end of their fixed-term are paying back their existing mortgage loans at rates of around 2.25%, however, new fixed-rate mortgages will be significantly costlier even if ECB official rates fall sharply by the end of the year.

"We know the mortgage process can seem a bit overwhelming," said AIB Managing Director Retail Banking, Geraldine Casey. 

"That’s why we’re making it easier for customers to switch to us by increasing the switcher payment, so customers have more support in covering their costs."

The group, which comprises AIB, EBS and mortgage broker, Haven said the payment would also be available for customers already in the pipeline who draw down their mortgage from May 27th 2024.