The chief executive of AIB has said the bank will make a decision over the course of the next number of weeks about whether to pass on the latest European Central Bank (ECB) interest rate increase to its mortgage borrowers.
AIB didn't pass on the 0.5% ECB rate hike announced in July to its variable rate or new fixed rate customers, nor has it announced changes to what it charges on mortgages other than trackers since last week's 0.75% ECB rate increase.
"We are currently considering our response to the most recent rate increase," CEO Colin Hunt told the Oireachtas finance committee.
But Mr Hunt said he is very conscious of the struggles that people are facing at this moment in time.
The CEO indicated AIB hadn't ruled out absorbing the last increase in rates, but added that it would be inappropriate for him to give advance notice of a change that hasn't been proposed.
Mr Hunt said 52% of AIB's mortgage book is on fixed rates, less than 20% are on a tracker and 30% use the standard variable rates.
Meanwhile, Bank of Ireland interim CEO, Gavin Kelly, told the same committee that it keeps its rates constantly under review.
It, like AIB, has passed the rate increases to date on to its tracker customers only, but not to new fixed or variable rate mortgage borrowers.
"We haven't made any decisions in relation to further changes to those rates, so I'm not going to give and can't give a commitment today on any changes that haven't been taken yet," Mr Kelly said.
60% of Bank of Ireland's mortgage book is on a fixed rate, 10% is on a variable rate and the remaining 30% use a tracker rate.
Bank of Ireland's variable rate was heavily criticised by Sinn Fein's finance spokesman, Pearse Doherty, who said it is twice the level of the European average.
"Give me a financially sound reason why anybody in this State should be paying 4.5% interest on a variable rate when you can get the same in the market for 3.15% from AIB," he asked.
He claimed Bank of Ireland is consciously exploiting the inertia of customers on a variable rate who may fear moving provider.
Permanent TSB, which has also only passed on recent rate increases to tracker customers, also told the committee its rates are under review.
28% of its mortgages are on tracker rates, 20% are on variable rates and 50% are settled on fixed rates.
Chief executive Eamonn Crowley he couldn't talk about the future, but so far the lender hasn't passed on the 1.25% of increases announced by the ECB.
"That is around maintaining our competitive position and around ensuring that we are offering customers the best value they can get," he said.
