Bank reassures mortgage holders they will not face 'greater' than expected repayments

AIB has reassured concerned customers that there will be no change to their monthly repayments after it was reported that they had been undercharged by a previous mortgage provider. 

It is believed the issue arose with a group of customers whose tracker mortgages with Ulster Bank were acquired by AIB when Ulster Bank exited the Irish market earlier this year.

The mortgage holders affected received a letter stating that they had been under-charged on their mortgage for years by Ulster Bank and that their payments would increase in October to cover the difference.

According to the Irish Independent, some were facing significant increases in their repayments.

The queries arose following a letter issued after the July ECB rate increase, which resulted in customers being notified of an incorrect monthly payment change scheduled to take effect in October.

In a statement AIB said it wished "to reassure" those customers that they do not need to take any action.

"We will issue revised letters with corrected payment amounts in the coming weeks," the bank said. 

"In the meantime, there is no change to their monthly repayments.

"Customers will not face repayments greater than they had originally expected following the ECB increase.

"We apologise to those customers for any anxiety caused and assure them that we will take all corrective action necessary to put this right," AIB stated.