AIB says it is 'less inclined' to approve loans to mortgage switchers, although it says it is still keen to talk to anyone who wants to buy a property.
A spokesperson for AIB said the bank was not interested in lending people who were moving banks for the benefit of its rates.
The move will be seen as bad for competition, as Permanent TSB has recently increased its mortgage rates several times, and mortgage holders with Halifax may want to move elsewhere as the bank withdraws from the Irish market.
In a statement this morning AIB said it was not inclined to use its resources to facilitate the replacement of a mortgage contract on one institution with a cheaper one at AIB.
This morning the Financial Regulator said AIB's move did not go against the regulator's voluntary 'switching code' as this applies to personal current accounts.
