AIB is set to capture more of the green mortgages market by reducing the rates on its fixed-rate products by 0.2 percentage points, thus making it the lowest in the market. The bank, along with its EBS and Haven subsidiaries, provides a five-year fixed-rate green loans service. The newly lowered rates will come into effect from Tuesday for all three brands.
Green mortgages are offered to homes that have a Building Energy Rating (Ber) of B3 or above in Ireland. These mortgages typically offer lower prices than conventional home loans. In this scenario, AIB’s five-year green product—which includes loans that make up less than half the property’s worth—will lower by 0.2 percentage points to a rate of 3.45 per cent. The mortgages that carry a loan-to-value ratio of 50-80 per cent will be reduced to 3.55 per cent.
For instance, someone with a newly contracted AIB five-year green fixed-rate mortgage worth €300,000, with a loan to value range of 50-80 per cent on a 25-year term, would require to make a monthly repayment of €1,508.70. Those with mortgages under the previous rate paid €32.28 more each month.
AIB has also slashed its four-year green product rate to 3.55 per cent, and its sister brand Haven’s rate is set to decrease to 3.45 per cent. New and existing customers of all three brands can benefit from these new rates. In comparison, Bank of Ireland offers its cheapest green mortgage rate of 3.65 percent on its four-year product for loans of €250,000 or more. The starting point for PTSB green rates is 3.8 percent for a three-year fixed term.
From the first half of 2023, over 19,000 upgrades were completed, according to the Sustainable Energy Authority of Ireland. Homes with a Ber rating of 3 or above potentially qualify for a green mortgage.
AIB is thrilled to announce these mortgage rate drops across all its brands—AIB, EBS, and Haven—making its green mortgage product the most competitive in the market, available to both new and existing customers, remarked Geraldine Casey, AIB’s Managing Director of Retail Banking.
I would urge clients to explore their eligibility for a more affordable tariff, specifically those who have made renovations in their properties in order to raise the energy efficiency to an A1 to B3 level. Cutting our eco-friendly mortgage rates is consistent with our plan to increasingly eco-balance our lending as we assist clients in making greener decisions.