AIB will defer the European Central Bank (ECB) rate hike announced in July for four months for tracker customers whose mortgages have transferred from Ulster Bank.
The bank said the deferral is in recognition of the "confusion and concern" caused when it sent letters last month to these customers, which indicated that their payments were set to rise more than expected in October.
"The letter was issued following the ECB rate increase announcement in July and may have contained an incorrect repayment amount for October 2023," AIB said in a statement this afternoon.
"AIB would like to apologise again and reassure customers that no incorrect repayments were made and no customer is out of pocket as a result," it added.
AIB said the ECB rate increase which was due to come into effect for these customers in their October repayment, will now be deferred until their February 2024 repayment.
It added that any further rate hikes announced by the ECB between now and the end of December, will also be deferred for these customers until February - at no cost to the customer.
"None of the rate increases being deferred from July 2023 to December 2023 will be backdated for these customers," the bank clarified.
The lender said it will write to these customers in December to advise them of what their February repayment will be, "given the evolving interest rate environment".
It will also write to customers in the next week to notify them of the deferral and provide further information if needed.
The bank said customers do not need to take any action at this time.
Around 33,000 mortgage accounts have transferred from Ulster Bank to AIB so far as part of the transaction.
The bank described this process as "complex", and said it is committed to resolving any issues that may arise as soon as possible.
"We will ensure no financial detriment for customers," it said.
