AIB has said it is ‘less inclined’ to approve loans to mortgage switchers, saying that it is more interested in lending to first-time buyers instead.
A spokesperson for AIB said the bank is not interested in lending to people who are 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 at one institution with a cheaper one at AIB.
The Financial Regulator said AIB's move does not go against the regulator's voluntary ‘switching code’ as this applies to personal current accounts.
In a statement the bank said a loan to value of up to 92% is available for customers who are looking to purchase a house, with 'capacity to repay being the key determinant in assessing mortgage applications'.
The bank said it is very keen to talk to anyone who wants to purchase a property.
