AIB cuts some mortgage rates

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Charlie Weston has the details here:

AIB is reducing by 0.25 percentage points the cost of its five-year fixed green mortgage rate.



The four-year fixed rate, which is for all mortgages of €250,000 and over, is also coming down by 0.25 points, and will be available from as low as 3.7pc.
 



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:

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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.
 
We recently went from 3.65 to 3.45 with AIB green mortage. Time to fill in another form and change rate again :)
 
Is it just AIB own's rates that are moving? Or are AIB Group's Haven and EBS mortgage rates moving too?
 
At the moment I pay €735 a month on variable 3.75%

Looks like I could pay €685 if I fixed for 5 years at 3.2%

LTV is 37%

Is it easy to switch to fixed?

Should I consider holding out a little longer in hope of variable rate cut, I know this is the harder question to answer!

I'd hope to overpay a bit more, looks like AIB cap that at €5K for no additional cost.

Thank you
 
Is it easy to switch to fixed?
It is as easy as filling in the Mortgage Amendment Form (This is the latest one dated March 2024 I found from AIB website, they do update it every now and again, so best to google for it whenever you need to make a change).

Should I consider holding out a little longer in hope of variable rate cut, I know this is the harder question to answer!
Don't see any reason to hold out. Do you expect to overpay by more than 5K per anum? If not, then it is not an issue.

If you are going to go over 5K, you might want to have a read of this thread also. Apart from rate being different (taken at the time of discussion), the general method is still the same. You might be able to overpay with no extra change anyway (depending on the circumstances and whether it meet the AIB calculation criteria)

 
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3.2% is currently AIB's lowest rate. When they are calculating a break fee, they will look at the two fixed rates either side of your time remaining. For example if you went for this and in a couple of months they reduced the rate again, as long as the 4 year fixed is higher than your rate, there will be no fee to switch to the new rate.

I did this recently. Fixed a few months ago at 3.45%, they reduced the rate again to 3.2%. I completed the mortgage amendment form and just emailed it off to them. Rate changed a couple of days later. It's a new 5 year fixed term and the €5,000 overpay allowance resets too.

But I'm not worried about that allowance. As explained above there is no fee due so I pay an extra €1,000 a month and have not been charged a fee.

So if you're eligible for the 5 year green rate, I say go for it. I've been able to change the rate twice without penalty.

I should point out, as I always do when talking about this, this quirk is for the 5 year green fixed rate as it is a good bit lower than AIB's other fixed rates. It might be true if you're on another rate but you'll have to look into that yourself or ask here.
 
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I didn't notice at first that the 3% rate is for A rated homes. That takes any decision out of my hands as ours is B. I'll stick with my 5 year 3.2% for now.
 
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I'm locked in at 2.15% until Oct-2027. Wonder will they get that low again over the next three years.
Will keep the head down until then!
 
I'm locked in at 2.15% until Oct-2027. Wonder will they get that low again over the next three years.
Will keep the head down until then!
Probably not, but it probably won't be far off.

Those who listened to the several posters here who screamed at people to take 7 and 10 year rates at 2% - 2.5% will have played a perfect game. :)
 
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