AIB Group has increased the payment for eligible mortgage customers who switch to AIB, EBS or Haven to €3,000.
The payment, up from €2,000 previously, is to help cover the costs associated with switching, and aims to encourage switching for mortgage customers, particularly those whose fixed-rate mortgages are coming to an end.
The increased switcher payment makes AIB Group’s mortgage offerings more competitive following recent rate reductions of 0.2 per cent across AIB, EBS and Haven green mortgages.
A spokesman for AIB said the switcher payment is available to all eligible mortgage customers who switch to AIB, EBS or Haven. For example, customers switching to fixed and variable rates from AIB to Haven, or vice versa, can avail of the payment.
“AIB Group’s 50 per cent increase in switcher payments offered by AIB, EBS and Haven will help customers meet a number of costs associated with switching as they look to get a mortgage that’s good value for them,” the group said.
In recent years many customers in Ireland opted for security, with about half locking in to fixed-rate mortgage terms. Many of these terms may now be coming to an end and as a result the switcher market is likely to become more active again.
“AIB, EBS and Haven will welcome customers who choose to switch with our increased switcher payment, along with value-for-money mortgage rates and dedicated mortgage advisers,” the group added.
The difference between the lowest and highest mortgage rates on the Irish market hit a record 3.3 per cent earlier this year as homeowners may be paying an average of up to €7,292 in extra repayments per year by not switching lenders.
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The mortgage switching index from online mortgage broker doddl.ie is based on the average new mortgage drawdown of €308,814 in the last quarter of 2023, with roll-out variable rates on the market ranging from 3.85 per cent to 7.15 per cent.
Meanwhile, figures from Banking and Payments Federation Ireland show the number of switching and remortgage approvals rose by 0.5 per cent year on year in February.
AIB managing director for retail banking Geraldine Casey said: “We in AIB Group are committed to choice, value and convenience for our mortgage customers. We know the mortgage process can seem a bit overwhelming.
“That’s why we’re making it easier for customers to switch to us by increasing the switcher payment, so customers have more support in covering their costs.
“Add to that our dedicated mortgage advisers who will support customers through the process as well as our recent green mortgage rate reductions for new and existing customers, AIB Group is a competitive choice for Irish homeowners seeking to review their options.”
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