AIB is to cut the interest rate on many of its fixed rate mortgages by as much as 0.75 per cent.
The lender will cut rates on its non-green fixed rate mortgages from May 13th the bank said in a statement.
“AIB’s two-year fixed rate for non-Green mortgages will reduce by 0.75 per cent and all other non-Green fixed rate mortgages will reduce by 0.50 per cent, excluding the high value four year fixed rate,”it said.
The cuts come as the European Central Bank (ECB) continues to reduce interest rates amid worries about growth in the European Union (EU) amid US President Donald Trump’s move to impose tariffs on the bloc and around the world.
“These reductions, coupled with previously announced reductions to our Green rate mortgages and our competitive variable rates demonstrate our commitment to supporting customers and providing them with the best value on their home buying journey,” AIB’s managing director for retail banking, Geraldine Casey said.
A monthly repayment on a new €300,000 AIB two-year fixed rate mortgage, with a loan to value of between 50 and 80 per cent over a 25 year term will fall to €1,557.37 from €1,682.35, the bank said.
Meanwhile AIB has also reduced its rates on some of its fixed-term deposit accounts. Interest on one- and two-year fixed term deposit accounts will reduce by 0.25 per cent and 0.5 per cent respectively, also from 13th May, 2025. All other savings and deposit rates remain unchanged.
“In line with the falling interest rate environment, we are reducing two of our Fixed Term Deposit accounts while keeping all other savings accounts unchanged,” Ms Casey said, adding that the reduction on mortgages that don’t qualify for so-called green loans will “provide significant support” to such borrowers.
Only homes with an energy rating of B3 or higher can qualify for green loans under current rules.
