AIB and First Active cut variable rates

AIB and First Active have cut their variable interest rate mortgages. Both institutions have cut the rate by 0.75 of a percentage point. This leaves First Active's at 6 per cent, bringing it into line with Irish Permanent among others. But AIB's rate, at 6.25 per cent, is among the highest of those lenders which have cut this week.

The new rate for First Active applies from today for new customers and will be passed onto existing customers on December 1st. AIB's new rate is effective for all customers from today.

AIB has also cut business lending rates by 1 per cent and personal term rates by 0.5 of a percentage point. There is no change in demand deposit rates. Personal overdraft rates have been cut by only a quarter of a point and remain in double digits at 10.75 per cent.