AIB to cut fixed mortgage rates and offers 10 year rate.

AIB is set to introduce a range of lower fixed mortgage rates, as well as a new ten year fixed rate.

The bank said it was introducing the new rates to offer customers "real choice" and to support customers who are looking for repayment certainty and long-term security.

AIB is cutting the rates on its one, two, three, four, five and seven year fixed mortgage rates.

It is also introducing a new ten year fixed rate offering at 3.3% as it said that increasing numbers of consumers are opting for longer term fixed rates in the Irish mortgage market.

The new rates are for owner occupier, primary dwelling home mortgage customers.

AIB said the revised fixed rates come into effect from April 10 for all new customers and existing variable rate customers who wish to opt for a fixed rate.

The bank said that if an existing customer is already on a fixed rate and wants to avail of the new rates an early breakage cost may apply.

Colin Hunt, the bank's chief executive, said that as the mortgage market leader, AIB is offering value and choice by introducing highly competitive fixed rate pricing, to complement its lowest variable offering in the market.

In a note, Davy said the importance of fixed rates continues to grow in the Irish market, and today's move by AIB reflects this as it seeks to ensure that its products are appropriately positioned.

Davy said that the Irish market had been heavily variable rate-led in the past.

It noted that it is only in the past five years that fixed rates have become a more important feature of the Irish mortgage market.

In the three months to January 2019, fixed rates accounted for 70% of all new mortgage lending, which was a series high since the dataset began in 2003.

In addition, consumers are now also seeking longer-term fixed rates, the stockbrokers added.

Source: RTE 09/04/2019