AIB tracker mortgage rates to rise by 0.5% from August

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AIB has said tracker mortgage rates will increase for all tracker mortgage customers by 0.5% in line with the European Central Bank increase.

Last week the ECB announced its first rate hike since 2011, in an attempt to tame inflation.

In a customer update on its website, AIB said the change will take effect in August for most customers.

It said the bank will write to all tracker mortgage customers confirming the new interest rate and the effective date.

AIB said there is no change to current variable or fixed rate mortgage rates.

It also confirmed that where negative rates were applied to customer balances, that will come to an end in August.

It said all impacted customers will be contacted to confirm the effective date.

AIB has in recent months been charging negative rates to its customers with deposits in excess of €1 million at a rate of 0.75%

Read more: Banks respond to higher-than-expected ECB interest rate hike