AIB to raise mortgage rates by 0.5% next month

Struggling mortgage holders are to be dealt a blow in the run-up to Christmas, with AIB set to increase its mortgage rate next month.

Tens of thousands of homeowners will see their mortgage repayment rate rise by 0.5% to 4%, with buy-to-let customers facing a 4.95% interest rate after the 0.5% increase.

The rise means additional payments of €60 a month for a homeowner with a €200,000 mortgage.