AIB softens its approach to mortgage applications from customers on State pandemic supports.
The banking group has now said that from next week it will commence accepting new mortgage applications from customers who are on the State’s Covid-19 supports.
AIB has softened its approach to mortgage applications from customers on the pandemic unemployment payment and the temporary wage subsidy. The banking group found itself at the centre of a storm this week when it was revealed it was halting all applications for mortgages from those on State supports at AIB, Haven and EBS.
An internal memo had exposed how the banking group was “pausing” lending to customers on the pandemic unemployment payment and the temporary wage subsidy. All lenders have effectively stopped issuing mortgages to customers on the pandemic unemployment payment and the temporary wage subsidy. AIB, Ulster Bank and Permanent TSB have stopped making loan offers to those on State subsidies, according to leading broker Karl Deeter.
He said some lenders are processing loan offers. These include Bank of Ireland, KBC and Finance Ireland. But these three will not allow people to draw down a loan while the applicants are on the pandemic payment or the wage subsidy scheme.