WITH SO LITTLE good news about, word that AIB is preparing a new lower-rate product for first-time buyers caused a flurry of excitement in Around The Block. AIB currently offer the best FTB package at 2.99 per cent one-year fixed. The rumour mill had it that the bank was limbering up for the launch of a new package with even better rates – as low as 2.6 per cent.
After months of restrictive lending such a move could give a much-welcome stimulus to the ailing housing market. Horray!
AIB, which is traditionally regarded as a cautious lender at the best of times, is clearly going after the first-time buyer market with a vengeance and word had it that the bank had set a target of 22,000 mortgages for 2009.
AIB’s press office made a predictable opaque denial – the bank had no “current plans” for such a package, but that’s not to say they wouldn’t in the future. That said, he was keen to stress that AIB “was open for business”.
While all banks are being very picky about who they give mortgages to at the moment, it’s fair to say that AIB, along with Bank of Ireland, are more active then most at the moment.
The most recent figures from the Central Bank indicate that mortgage lending is significantly down.
Growth in residential mortgage lending fell to 5.8 per cent in December – the lowest annual rate of increase since 1986.
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