The rate cuts could see the average mortgage customer save up to €100 a month.
AIB — along with its subsidiaries EBS and Haven — has announced significant cuts to its fixed mortgage rates, as it responds to growing competitive pressure from rivals such as Avant Money and more recently the credit unions.
From 24th October, AIB is cutting its fixed rates by up to 0.65 percentage points, while EBS is reducing its green rate to just 3.20%.
The changes mean that AIB’s standard fixed rates will now start from 3.30%. For a typical customer with a €300,000 mortgage, that could translate to savings of between €60 and €100 a month — or over €1,000 a year.
What’s changing at AIB?
Although AIB has offered some of the lowest rates on the market, these were mainly reserved for those purchasing an energy-efficient home with a BER of A or B — a so-called “green” mortgage rate.
The bank’s non-green rates were much higher and had become much less attractive for customers, especially against the likes of Bank of Ireland and Avant Money.
Today’s new rates, which are available to new and existing customers, change that, making AIB’s fixed rates much more competitive for a broader range of borrowers.
AIB’s subsidiaries are also joining in:
-
EBS is reducing it green four-year fixed rate from 3.55% to 3.20%, one of the lowest on the market.
-
Haven, which operates exclusively through brokers such as bonkers.ie, is cutting its non-green rates by up to 0.35 percentage points — following on from a reduction to its green fixed rate in September.
New AIB rates
|
Term |
LTV |
Old Rate |
New Rate |
|---|---|---|---|
|
1 Year Fixed |
≤50% |
3.90% |
3.30% |
|
>50–≤80% |
4.05% |
3.40% |
|
|
>80% |
4.15% |
3.50% |
|
|
2 Year Fixed |
≤50% |
3.70% |
3.35% |
|
>50–≤80% |
3.85% |
3.45% |
|
|
>80% |
3.95% |
3.55% |
|
|
3 Year Fixed |
≤50% |
4.05% |
3.50% |
|
>50–≤80% |
4.20% |
3.60% |
|
|
>80% |
4.30% |
3.70% |
|
|
4 Year Fixed |
≤50% |
4.10% |
3.55% |
|
>50–≤80% |
4.25% |
3.65% |
|
|
>80% |
4.35% |
3.75% |
|
|
5 Year Fixed |
≤50% |
4.15% |
3.65% |
|
>50–≤80% |
4.30% |
3.75% |
|
|
>80% |
4.50% |
3.85% |
|
|
7 Year Fixed |
≤50% |
4.40% |
3.85% |
|
>50–≤80% |
4.55% |
3.95% |
|
|
>80% |
4.65% |
4.05% |
|
|
10 Year Fixed |
≤50% |
4.55% |
4.00% |
|
>50–≤80% |
4.70% |
4.10% |
|
|
>80% |
4.80% |
4.20% |
|
|
Higher Value 4 Year Fixed |
≤50% |
3.70% |
3.40% |
|
>50–≤80% |
3.85% |
3.50% |
|
|
>80% |
4.05% |
3.60% |
New EBS and Haven rates
|
Lender |
Product |
Old Rate |
New Rate |
|---|---|---|---|
|
EBS |
Green 4-Year Fixed |
3.55% |
3.20% |
|
Haven |
1-Year Fixed |
3.85% |
3.55% |
|
2-Year Fixed |
3.95% |
3.60% |
|
|
5-Year Fixed |
4.15% |
3.90% |
|
|
7-Year Fixed |
4.35% |
4.10% |
|
|
10-Year Fixed |
4.45% |
4.25% |
AIB Group is pleased to offer a number of significant interest rate changes which could be of benefit to our customers on their home loans. We continue to take a balanced and measured approach to interest rate changes, offering choice, value and convenience across our AIB, EBS and Haven brands. 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.
AIB’s Managing Director, Retail Banking, Geraldine Casey
Why are rates falling?
Since the summer of 2024, the European Central Bank (ECB) has cut interest rates from 4% to 2% amid easing inflation. Irish lenders responded over the following months with reductions of their own, but competition in the mortgage market has remained strong — particularly from newer lenders like Avant Money, MoCo and even the credit unions, which are increasingly active in the mortgage space.
So even though the ECB looks to have paused its rate-cutting cycle for now, competitive pressure continues to drive rates lower.
For instance, PTSB reduced some of its rates for first-time buyers in September, while Haven cut its green 4-year fixed rate at the same time.
There are now 10 active mortgage lenders in Ireland (including the credit unions), and Revolut is expected to enter the market within the next year or two.
So whether you’re a first-time buyer, trading up, or looking to switch your mortgage, there’s more choice than ever. And with rates continuing to shift, it pays to compare the market and make sure you’re getting the best deal for your needs — which is where bonkers.ie can help you!
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