Allied Irish Banks (AIB) has said that it is reducing its one-year fixed interest rate for first time buyer owner occupiers to an interest rate of 2.49%.
The new rate will be available to first time buyer owner occupiers from February 16, 2009 on all mortgages sanctioned by March 31, 2009 and drawn down by June 30, 2009.
Allied Irish Banks has said that this offer along with improved affordability in the housing market strengthens the hand of first time buyers even further. Year-on-year, repayments for first time buyers are down by over GBP500 per month in the first year based on a combination of the drop in house prices and the reduction in fixed rate pricing.
AIB has also said that from February 16, 2009, it is introducing new loan-to-value variable rates for new owner occupier mortgages. The current standard variable rate for owner occupiers will no longer be available for new business from this date. Existing customers on standard variable rates will not be affected.
Donal Forde, managing director of AIB, said: We recognise the importance of the housing market to the wider economy and the impact that particularly first time buyer purchases have on the market. We will continue to lead the market in terms of aggressive pricing and are committed to increasing our capacity for mortgage lending in 2009.
