Dublin: In a welcome development for homeowners, AIB and private mortgage provider ICS have announced reductions in mortgage interest rates following the European Central Bank’s (ECB) second rate cut this year. The move brings much-needed relief to borrowers facing rising costs.
AIB Announces Rate Reductions and Incentives
AIB is reducing its five-year green fixed mortgage rate by 0.25% for homes with a Building Energy Rating (BER) between A1 and A3. Additionally, borrowers with loans of €250,000 or more will benefit from a reduction in the four-year fixed mortgage rate. The new five-year green rate will now stand at 3.2%, while the four-year green rate will be 3.7%.
AIB has highlighted potential savings for borrowers, with customers opting for the five-year green rate saving approximately €478 annually. Those choosing the four-year rate can expect savings of around €493 per year.
Switcher customers—those transferring their mortgage from other financial institutions—who meet the criteria will also be eligible for these fixed-rate offers. Furthermore, AIB is extending its €3,000 switcher cash offer to eligible customers. This marks the third time this year that AIB has lowered its mortgage rates.
The new rates will be available starting tomorrow, benefiting both new and existing customers. Additionally, AIB has extended its approval-in-principle period from six months to 12 months, giving potential homebuyers more time to search for and purchase a property.
Geraldine Casey, AIB’s Managing Director of Retail Banking, emphasised the importance of offering a variety of choices to meet the needs of customers looking to purchase new homes.
ICS Mortgages Also Reduces Rates
In a similar move, ICS Mortgages has announced that it will lower the fixed rates on its mortgage products starting from October 1. This follows a recent reduction in its variable rates earlier in the month. From next month, three-year and five-year fixed rates for owner-occupiers will start at 4.5%.
ICS Chief Commercial Officer Ray McMahon noted that the rate cuts are intended to provide more options for homeowners and enhance borrower satisfaction. The company also confirmed that existing fixed-rate customers would not be affected by the new rates.
Irish Samachar English News
{OR} Kindly click to follow the Irish Samachar News channel on WhatsApp
Comments are closed.