AIB subsidiary Haven said on Wednesday that it will cut its standard variable rate by 0.32 percentage points to 3.4 per cent. The reduction will apply to both new and existing customers, and coincides with a 0.25 percentage point cut in the lender's loan-to-value rates, meaning the lowest rate now on offer is 3.1 per cent.
The move follows a similar cut from AIB in May, when it brought its SVR down by a quarter of a percentage point to 3.4 per cent. It means that Haven’s offering, which is sold through the broker network, is now in line that of its owner, AIB.
Haven will also have lower rates available for those with lower loan-to-values. For example, someone with a loan which is worth 50 per cent or less of the value of the property will now get a rate of just 3.1 per cent, rising to 3.5 per cent for those with LTVs of more than 80 per cent. The cuts from Haven means that a homeowner with a €200,000 SVR mortgage over a 25-year term will save an additional € 410 a year.
The rates will apply to new customers from July 19th and for existing SVR mortgage holders on August 1st 2016. Haven is also cutting the buy-to-let mortgage rate by 0.24 per cent to 4.85 per cent.
Haven said it will also make a contribution of €2,000 towards the cost of legal fees for customers switching.
Last week fellow AIB subsidiary EBS said it would offer a 2 per cent cash back to mortgages drawn down between now and October. This means for example, that a typical customer borrowing € 200,000 will receive € 4,000 back. However the lending institution did not cut its rates, and its variable rates range from 3.3 to 3.7 per cent, depending onthe LTV.
