AIB cuts rates in non-Green mortgage products

AIB has announced a range of reductions to its non-Green, fixed-rate mortgage products.

The lender is cutting rates by between 30% and 65% with the new rates available from tomorrow.

AIB said the reductions could save more than €105 in monthly repayments for certain loans giving the example of a new €300,000 AIB 1-year fixed rate mortgage, with a loan-to-value of more than 80% over a 25-year term. AIB said the new monthly repayment would be €1,500 down from the previous €1,606, representing a saving of €2,308 over the 25-year term. 

These reductions follow several cuts by AIB to its Green mortgage rates, as well as non-Green rate cuts by EBS and green rate cuts by Haven, which are both part of the AIB Group.

AIB’s Managing Director, Retail Banking, Geraldine Casey said they continue to take a balanced and measured approach to interest rate changes. "These meaningful reductions we’re making could benefit tens of thousands of customers by saving them money each month, in some cases c. €105, or c. €1,270 a year," she said.

"We understand that some customers are buying a home in areas where Green properties are limited. 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."

The rate cuts follow a series of reductions on key rates by the European Central Bank in an effort to cut inflation that peaked at more than 10% three years ago. The ECB's main deposit rate has been left at 2% for the past two ECB policy meetings.

The ECB meets again on October 30. That meeting is widely expected to see policymakers keep the deposit rate at 2%, where it has been since June. With inflation now comfortably at the ECB’s 2% target, markets and economists don’t expect another move at their final gathering of the year in December either.

additional reporting Bloomberg