AIB cuts its four-year fixed mortgage rate
Daragh Cassidy
Head Writer

The rate reduction will apply to those borrowing €250,000 or more.

AIB is the latest lender to cut its mortgage rates. 

It's reducing its key four-year rate by 0.25 percentage points for those borrowing €250,000 or more. It follows a cut to AIB's green rates back in April. 

Customers can now get a rate between 3.95% and 4.30% depending on the size of their deposit or the loan-to-vale ratio.

For someone borrowing €300,000 over 25 years, the rate reduction will save them around €42 a month.

Rate Type

Loan To Value (LTV)

New Rate

Previous Rate


AIB 4-year fixed





AIB 4-year fixed

>50% - <80%




AIB 4-year fixed





AIB is pleased to announce this latest fixed mortgage rate reduction for new and existing customers. Recognising that many home buyers need to borrow more than €250,000 to secure their desired home, it’s important that we offer a wide variety of choice, value and convenience to customers. This mortgage offering is especially popular with customers in areas where there may be fewer homes available with higher energy efficiency ratings.

Geraldine Casey, AIB Managing Director, Retail Banking

Who is the new rate available to? 

The new rate is available to first-time buyers, movers and switchers from 3rd July. 

Switchers who meet the criteria will also benefit from AIB’s €3,000 cashback offer.

The new four-year rate is also available to existing AIB customers who have a balance of at least €250,000 remaining on their mortgage. So if you're currently on a variable rate with AIB or have a fixed rate that's about to end, you could move to this rate too if you want.

More rate cuts to come?

Earlier in the month the European Central Bank (ECB) cut rates for the first time in two years and banks have begun to respond by reducing some of their mortgage rates.  

Although the future trajectory of interest rates is a bit uncertain, it's still very likely the ECB will cut rates at least once more before the end of the year meaning it's likely we'll see more rate cuts from lenders in Ireland over the coming months. 

But if you’re on a fixed rate that’s due to end over the coming months, you still need to be prepared to roll over onto a potentially higher rate and face paying more for your mortgage each month. That's because if you took out a fixed rate over the past three or four years you may be enjoying a rate as low as 2% or 3% at present. However the cheapest non-green rate in the entire market right now is 3.60%. And the best rate you're offered from your lender may be closer to 4%.

You can read more about our warning to fixed-rate customers here.    

Compare the market 

Despite the rate cut from AIB, cheaper rates from other lenders may still be available.

You can compare all rates across all lenders using our free mortgage calculator. Then when it's time to apply for your mortgage, you can do so with the help of our in-house mortgage broker service.