AIB has launched two new shorter term green fixed mortgage products which are now the bank’s lowest available mortgage rates on offer.
The lender is offering a green three year fixed rate for homes with a building energy rating (BER) between A1 and A3 from 3%, and a green two year fixed rate for homes with a BER between A1 and B3 from 3.15%. The new rates are available to new and existing customers from October 26.
“AIB’s commitment to being a leader on sustainability provides tangible supports for customers as we transition to a net zero society,” said AIB Managing Director of Retail Banking, Geraldine Casey.
“These two new AIB Green Fixed rates are our lowest mortgage rates and offer the security of a fixed rate combined with value.”
AIB said more than €380 can be saved each year on the new three-year fixed rates when compared to the AIB green five-year fixed rate, based on a mortgage of €300,000 with a loan to value of greater than 80% over 25 years.
The bank added that 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.
Along with these new rates, AIB has recently extended its Approval in Principle period from six to 12 months, giving more time for customers to find and buy their new home.
The development is the latest move by an Irish mortgage provider following the European Central Bank’s (ECB) recent back-to-back cuts announced last week, which saw its benchmark rate reduced by a further 0.25%.
This marked the ECB’s third official rate cut since embarking on its aggressive monetary policy campaign to tame surging inflation, with AIB being the first to respond to the ECB’s latest decision.
Bank of Ireland, PTSB, Avant Money, EBS, and Haven have also all cut their rates at different stages this year.