AIB has announced details of a new product which will allow customers to retain their tracker mortgages if they move home.

Qualifying customers will pay their existing tracker mortgage rate plus 1% if they move, with the length of the term and maximum loan value the same as what remains on their current deal.

AIB said any additional funds required would be borrowed at its new business rates.

The bank signalled its intention launch a tracker transfer offer earlier this year and said it would be available to borrowers trading up or trading down, as well as those in negative equity.

In a related announcement, AIB said it was also changing its Negative Equity Mover product to allow customers to trade down.

The bank’s product sees the negative equity on a property being transferred to a new mortgage.

AIB said it would also cut its fixed rates on mortgages, with its one year fixed for new business dropping to 3.5% and its five year fixed rate falling to 5.2%.

All of these new offers come into effect from tomorrow, according to the bank.