Thousands of Irish homeowners set for major boost as popular bank cuts mortgage rates
THOUSANDS of Irish homeowners are set for a big boost as a popular bank has cut their mortgage rates.
AIB is set to save its customers money by introducing market leading cuts to their Green Mortgage rates.
AIB, EBS, and Haven will reduce the Green Mortgage fixed rates across all brands from April 9.
The rates will be reduced by 0.2 per cent.
These new lower rates will be available to both new and existing customers.
This will mean that the AIB Group will now offer the lowest Green Mortgage rates in Ireland.
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As a result of the cuts, customers will save around €387 annually with a Green Mortgage.
AIB is advising customers to check if they qualify for a "money saving Green Mortgage".
The Green Mortgage is offered to any new and existing customers whose home has an energy rating of B3 or higher.
AIB warned: "Many customers may not be aware they qualify for one of our cheaper Green Mortgage rates which are available if a customer is buying their home with a BER rating between A1 and B3.
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"These rates are also available to customers who have a mortgage loan with us if their home has a BER rating between A1 and B3 and there are more than five years left on the loan."
According to the Sustainable Energy Authority of Ireland, in the first half of 2023 more than 19,000 upgrades were carried out.
Those who have also retrofitted their homes may also qualify for a Green Mortgage.
AIB’s Managing Director of Retail Banking, Geraldine Casey said “we’re delighted to announce this mortgage rate cut across all our brands, AIB, EBS and Haven, which makes our Green Mortgage product market leading and will be available to both new and existing customers.
"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.
"Reducing our Green Mortgage rates aligns with our strategy to further green our loan book as we support customers to make more sustainable choices."
For example on the savings customers will see, on a new €300,000 AIB 5 year Green fixed rate mortgage with a loan to the value of between 50 per cent and 80 per cent over a 25-year term will be €1,508.70.
This is down from €1,540.98 - saving customers €32.28 monthly, €387.36 annually, or €1,936.80 over the five year term.
A monthly repayment on a new €300,000 AIB 5-year non-green fixed rate mortgage with a loan to the value of 50 per cent to 80 per cent over a 25 year term is €1,716.39.
A monthly repayment on a new €300,000 AIB variable rate mortgage with a loan to value of 50 per cent to 80 per cent over a 25-year term is €1,573.63.
European Central Bank rates have increased by 4.5 per cent, but AIB Group has only applied increases to mortgage rates of around 1.70 per cent.
The new savings will include:
| Green Fixed Rate | Current Rate | New Rate |
| AIB Green 5 Year Fixed Rate – LTV <50% | 3.65% | 3.45% |
| AIB Green 5 Year Fixed Rate – LTV 50% - 80% | 3.75% | 3.55% |
| AIB Green 5 Year Fixed Rate – LTV 80% - 90% | 3.85% | 3.65% |
| EBS Green 4 Year Fixed | 3.75% | 3.55% |
| Haven Green 4 Year Fixed Rate | 3.65% | 3.45% |
Meanwhile, Bank of Ireland customers may be forced to replace their current mobile phones with newer models in months to avoid losing access to their digital services.
Customers were left raging after the bank confirmed that the app will no longer support their device unless it is upgraded.
The message from the bank, which was sent directly to customers on their 365 online banking app, read: "31st March is a key date for any customer with an operating system on their device that is older than those mentioned below.
"After this date we will no longer offer support for these operating systems."
BOI has confirmed that the deadline to replace older devices has been pushed back until July 1.
Customers with iPhones and iPads will need at least an iOS (Apple) version 15 operating system.
Those who use an Android will need to update to Android 11 or higher in order to continue using the mobile banking app in the summer.
But some customers have claimed that they will be forced to fork out hundreds of euro on a new device.