AIB to increase tracker mortgage rates by 0.5pc from August

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AIB will increase tracker mortgage rates by 0.5pc in line with the European Central Bank increase last week.

he ECB increase in interest rates, the first in more than a decade, comes as inflation soars across the Eurozone.

The increase will impact all AIB tracker mortgage customers, according to an update on the bank’s website.

Changes will take effect in August for the majority of tracker mortgage customers. AIB said it will write to all tracker mortgage customers confirming the new rate, as well as the effective date.

There is to be no change to AIB’s current variable or fixed rate mortgage rates at this time.

AIB will also cease applying negative interest rates to all affected accounts in August and said it will communicate this to impacted customers directly.

Typically, banks increase tracker rates a month after an ECB rate rise. The increase in interest rates looks set to impact 250,000 tracker mortgage customers across Ireland.