EMBARGO 26th September 2024
AIB announces 0.25% reduction to green fixed mortgage rate and four year fixed rate for mortgages over €250,000
Five-year Green fixed rate available from 3.20%
Four-year fixed rate, available for all mortgages of €250,000 and over from 3.70%
- Customers can save c. €478 a year if they choose the five-year Green rate and c. €493 if they choose the four-year rate
- Rates are available to new and existing customers from 27th September 2024
- Customers switching to AIB can also avail of the €3,000 Switcher cash offer
- AIB has extended its Approval in Principle period from six to 12 months
AIB is reducing by 0.25% its five-year Green fixed mortgage rate, available for homes with a BER rating between A1 and B3, and its four-year fixed mortgage rate for all customers borrowing €250,000 or more. The five-year Green rate will be available from as low as 3.20% and the four-year rate will be available from as low as 3.70%.
The new rates are available to new and existing customers from 27th September 2024. Switcher customers who meet the criteria and wish to avail of one of these fixed rates will also benefit from AIB’s €3,000 Switcher cash offer. And AIB has extended its Approval in Principle period from six to 12 months, giving more time for customers to find and buy their new home.
Many customers may not be aware they qualify for one of our cheaper Green mortgage rates, including this reduced five-year Green fixed rate. Our Green mortgage rates are available if a customer is buying a home with a BER rating between A1 and B3. These rates are also available to self-build customers and customers who have a mortgage loan with us if their home has a BER rating between A1 and B3 and there are more than five years left on the loan.
At a time when the average house price in Ireland is €337,500, according to the
Central Statistics Office, the four-year fixed mortgage rate has proved popular with customers seeking the security of a fixed rate when borrowing at least €250,000, particularly if they are seeking to buy in an area where there may be fewer homes available with higher energy efficiency ratings.
AIB’s Managing Director, Retail Banking Geraldine Casey said “It is important that AIB offers a wide variety of choice, value and convenience for customers seeking to buy their new home as can be seen with this latest announcement of rate reductions. Indeed, this is the second time AIB has reduced mortgage rates in 2024.
We are pleased to announce a reduction in our five-year Green fixed mortgage rate, which aligns with our strategy to further green our business as we support customers to make more sustainable choices.
And we recognise that many home buyers may look to borrow more than €250,000 to secure their desired home. This mortgage offering is especially popular with customers in areas where there may be fewer homes available with higher energy efficiency ratings.”
The new rates are as follows:
These latest reductions follow a number of cuts to mortgage rates by AIB Group since April 2024. AIB has a full suite of mortgage options for our customers across green, variable and fixed rates and continues to offer competitive variable mortgage rates which appeal to customers who don’t wish to take a fixed rate.
When the European Central Bank increased rates by 4.50%, AIB Group took a measured approach, passing on c.1.70%.
A monthly repayment on a new €300,000 AIB five-year Green fixed rate mortgage with a loan to value of 50-80% over a 25-year term will be
€1468.88. The previous monthly repayment would have been
€1508.71, representing
a saving of €39.83 per month, €477.96 annually, or €4127.58 over the 25-year term.
A monthly repayment on a new €300,000 AIB four-year fixed rate mortgage, available for mortgages of €250,000 or more with a loan to value of 50-80% over a 25-year term will be
€1557.27. The previous monthly repayment would have been
€1598.37, representing
a saving of €41.10 per month, €493.20 annually, or €3358.77 over the 25-year term.
ENDS.
Contact
louise.y.kelly@aib.ie 087 216 1545
Notes to Editor
- The four-year fixed rate is available to new AIB Private Dwelling House (PDH) mortgage customers, including Switchers, borrowing at least €250,000 over a term of four years or more.
- Existing AIB PDH customers can avail of the four-year fixed rate if the remaining balance on the mortgage is at least €250,000 and a term of four years or more remains on the mortgage loan when actioning the request.
- For more information on our new reduced mortgage rates, please visit Mortgage Interest Rates Ireland, Fixed Rate and Variable Rate Mortgages | AIB. Please note the four-year fixed rate for mortgages of €250,000 or more is referred to as the ‘Higher Value’ rate.
- The extension to Approvals in Principle came into effect from applications received on or after 23rd August 2024.
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