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AIB HAVE TODAY announced that its variable rate mortgage rates are to increase by up to 0.4 of one per cent.
The new increases are to become effective from 5 June. The bank also announced that EBS and Haven variable mortgages would increase by up to one quarter of one per cent, effective from 1 June.
The bank said that while it would continue to keep its lending rates under review, it didn’t anticipate any further variable mortgage price increases in 2013.
The bank said that the increases were required in order to ensure that it continued to lend at long term sustainable pricing levels, adding that AIB’s variable rates had been “at unsustainable levels relative to the cost of funding for several years, while EBS has not announced an increase in almost two years.”
Impact on mortgage repayments
Based on the average AIB mortgage which is €130,000, today’s increase will see the average monthly payment increase by approximately €24.
The average mortgage with EBS stands at approximately €100,000, and mortgage holders who have borrowed this amount will see their monthly payment increase by an average of approximately €17.
AIB’s director of products, Fergus Murphy, said that in order for the bank to “return to a stable banking model” it needed to “apply competitive pricing policies in order to make a return to profitability.”
While AIB and EBS recognise that any increases are unwelcome for customers, we must ensure that mortgages are provided at a
sustainable pricing level.
This increase does not apply to tracker and fixed rate mortgages, which form the majority of the bank’s Irish mortgage loan book.
Both Fianna Fáil’s finance spokesperson Michael McGrath and his Sinn Féin counterpart Pearse Doherty have criticised the rate increases, with Doherty saying that today’s announcement would “affect 70,000 borrowers at AIB alone.”
He went on to say:
AIB is 99 per cent owned by the state, by the people. They cannot be allowed to increase again their variable interest rates. This government talks a good talk on easing the mortgage crisis but yet they stand by while state-owned banks increase the cost of borrowing.
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The Mercy has been overwhelmed for a very long time now, this was inevitable. There have been documented accounts of fights at the front door and violence inside the A&E. Overcrowding in the A&E and lack of beds is only going to escalate tensions and potential conflict. A review now is insulting a very much too little too late. I feel sorry for the staff having to deal with this, it’s very much not an isolated incident. Management, the HSE and the minister need a proper response to this, not a short term fix. RIP to Mr Healy and sympathies to his family, horrendous news.
Typiclal Union attempting to score points. Show some respect ffs
@SquideyeMagpie: The INMO has highlighted this issue well before this incident. There has been 33000 assaults on nurses in the last 7 years.
@Maria: Sick society.
It saddens me that this type of violence has crossed over into our Hospitals and the safety of those nurses and doctors is further put at risk. We all know this has been a long time coming, from drunks overcrowding A&E’s to drug addicts to mental health issues. But yet the priority by the I.N.M.O. and Phil Ní Sheaghdha is solely pay ( I totally get and support the pay issue), whereas the priority should surely be about safe working conditions and safety for patients. Are issues like safety, recruitment, i.e. more staff, agencies and the training and keeping of more nurses. Are safety conditions not more worthy of strike action than pay. It is not that the H.S.E. and I.N.M.O. etc don’t know what the problems are, it is that they don’t want to be bothered by trying to find a solution. E.G. Last week the HSE paid out E31m in compensation in a birth case, which has been an ongoing issue for years but it keeps on happening, that money and the excessive amounts paid to recruitment agencies could be pumped back into Health. Two weeks ago
Perhaps Minister Neale Richmond could do what Damien English failed to do and challenge the injunction Top Security have opposing the ERO for security workers who are stuck on €11.65/h since 2019
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