AIB and affiliates EBS and Haven are cutting the fixed rates on their “Green Mortgages” by 0.2%.
The changes will take place from tomorrow and will be available to new customers and existing customers seeking to fix.
The bank claims the move will make its Green Mortgage rates the cheapest in the country.
On a €300,000 5-year Green fixed rate mortgage over 25 years with a loan to value ratio of 50-80%, the change will lead to savings of around €32 a month on repayments or €387 a year.
The product is available to new customers who are buying a home which has a BER of B3 or higher or if they are an existing customer whose home is rated B3-A1, where there is over five years left on the loan.
“I would encourage customers to check if they are eligible for a cheaper rate, particularly those who have carried out retrofitting work on their homes to improve the energy rating to between A1 and B3,” said AIB’s Managing Director, Retail Banking Geraldine Casey.
“Reducing our Green Mortgage rates aligns with our strategy to further green our loan book as we support customers to make more sustainable choices.”
In the first half of last year, more than 19,000 energy upgrades were completed according to the Sustainable Energy Authority of Ireland.
Later this week the Governing Council of the European Central Bank is due to meet to consider what to do with interest rates.
With inflation continuing to fall, markets are pricing in a first rate cut by the ECB in June.
This is likely to put pressure on banks to pass through the reductions to borrowers.
However, it is expected that Irish banks will be slower to cut their rates as they did not pass through the full 4.5% in increases by the ECB.
For example, AIB has applied increases of around 1.7% to its mortgage rates.
Article Source – AIB, EBS and Haven cut fixed Green mortgage rates by 0.2% – RTE
