Sinn Féin spokesperson on Finance, Pearse Doherty TD, has described AIB’s decision to reduce its four-year fixed rate only on mortgage balances of more than €250,000 as unfair.

Despite interest rate increases for all during a cost of living crisis, rate reductions are being unfairly given to a minority of borrowers.

The Donegal TD said that the move to exclude smaller mortgage balances from the rate reduction would limit the ability of smaller borrowers to benefit from competitive rates and savings.

Teachta Doherty said:

“Today’s decision by AIB to reduce its four-year fixed rate for mortgages balances of more than €250,000 will be welcome news for some, but a great disappointment for many others.

“Borrowers with balances below €250,000 will be unable to benefit from this reduced rate and the savings it will offer.

“Those with larger mortgages will be able to save and switch provider on better terms compared to those with smaller mortgages who will have fewer options.

“We have been here before – in April AIB decided to reduce fixed rates only for its green mortgages.

“This was essentially a rate cut only for new homes, discriminating against those buying or only able to afford second-hand homes.

“Since 2022 banks, including AIB, have increased their interest rates across all their mortgage products.

“Rising mortgage costs have hit the pockets of workers and families, while banks have seen their income and profits soar.

“The decision by the ECB to cut its interest rates, with more cuts expected, provided an opportunity for banks to demonstrate their commitment to putting their customers.

“AIB have not taken this opportunity but are instead offering rate reductions for specific types of borrowers while offering no rate reduction and worse terms for so many mortgage holders and first-time buyers.

“When applying interest rate hikes since 2022, our banks were largely indiscriminate.

“In the interests of fairness, banks should be applying rate reductions that benefit all borrowers to ensure that mortgage-holders can benefit from rate reductions following a period of soaring mortgage costs.”