AIB has reduced a number of its non-green fixed mortgage rates by up to 0.65 per cent, with other brands within the Irish banking group also reducing rates.
The bank said the reductions could benefit more than 10,000 people each month, saving as much as €105 each month.
The cuts will take effect from October 24th, for new customers and existing ones reaching the end of their term.
Customers on AIB’s five-year fixed rate for non-green mortgages will see reductions of 0.65 per cent, from 4.50 per cent to 3.85 per cent on higher loan-to-value (LTV) mortgages. Other non-green fixed rate mortgages have also been reduced.
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AIB group subsidiary EBS has reduced its green four-year fixed rate rates by 0.35 per cent having also made reductions to its non-green rates. A selection of Haven’s non-green mortgage rates have also been cut by up to 0.35 per cent.
AIB customers with a higher LTV ratio, 80 per cent or higher, will see the greatest reductions to their rates, whereas those on the two-year fixed rate mortgage with an LTV of 50 per cent or less will see their rates cut by 0.35 per cent.
A customer on a new €300,000 AIB one-year fixed rate mortgage with an LTV over 80 per cent on a 25-year term will see their monthly repayment fall from €1,500.67 to €1,606.62 – a saving of €105 each month or €1,270 annually.
“AIB Group is pleased to offer a number of significant interest rate changes which could be of benefit to our customers on their home loans,” the group’s managing director of retail banking Geraldine Casey said.
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“We continue to take a balanced and measured approach to interest rate changes, offering choice, value and convenience across our AIB, EBS and Haven brands.”
“We understand that some customers are buying a home in areas where green properties are limited,” she said, “These new non-green rates in AIB and Haven will provide significant support to those customers, while the EBS green fixed rate reduction is extremely competitive.”
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Michael Dowling of Irish Mortgage Brokers said the bank had made “significant” cuts as its rates had been “out of sync” with the rest of the market.
He said the interest rates would likely have had an impact on demand for their mortgages as some of their rates had been more than one percentage point higher than offerings for competing banks.
While AIB also made cuts to its green mortgages recently, available for homes with a Building Energy Rating (Ber) rating between A1 and B3, Mr Dowling said 75 per cent of properties in Ireland have a rating between C to F and were therefore not eligible for those reductions.
Daragh Cassidy of bonkers.ie said “AIB’s non-green rates hadn’t been very competitive until now, particularly against the likes of Bank of Ireland. You wouldn’t have recommended them at all really. But today’s reductions change all that.”
Mr Cassidy said there are “now 10 lenders in the Irish mortgage market when you include the credit unions, and Revolut is likely to enter the market sometime next year or in 2027” and encouraged customers to shop around for better rates.
