Most people put off switching their mortgage, because the process seems daunting, not to mention time-consuming. This is despite the fact significantly better rates exist that could save them thousands of euro, especially over the lifetime of a mortgage.
But when Shady Rashed and his wife contacted AIB about potentially switching the mortgage on their home in Lucan, Co Dublin, they were surprised - and thrilled - to discover that the process could not only be quick, but seamless, and without the multiple meetings and piles of documentation one would imagine would be involved in any mortgage arrangement.
While interest rates climbed for several years, since April 2024, AIB has been steadily decreasing mortgage interest rates across their green and non-green rates. Their green rates are currently some of the most competitive on the market, with a generous switching payment also on offer.
Although Rashed requested a reduced green rate with his mortgage provider at the time, he was told that this was reserved for new customers only. “We asked them to provide an exception but there was no luck with that.”
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Then he tried AIB. Rashed still sounds stunned at the speed and ease of the entire process. “The story was just so different with AIB, we had a chat with our mortgage advisor and within 20 minutes, we closed the deal.”
The couple were thrilled - not only would they benefit from the new, much lower, green rate, they could also top up their mortgage in order to afford a round of renovations they were keen to get done.
“When I spoke to our advisor, Sarah Meaney in the AIB SuperValu Lucan branch, I explained exactly what we were looking for,” Rashed explains. “She gave me the idea of the green mortgage and it was actually lower than the fixed rate I thought I needed. I told her about my plan for a mortgage top-up, she instantly gave me an offer of an amount that would include everything that I need to do in my house. I contacted my original bank immediately to say I was switching, I didn’t have to think twice.”
Because their home has a BER rating of A3, the couple were eligible to switch to AIB’s three-year Green A fixed mortgage rate of 3.1 per cent, saving €107 per month, or €1,284 per year on their original mortgage. With more than 20 years left on their mortgage, the couple will benefit significantly from their switch to a lower rate, Rashed notes.
“When it comes to calculating your monthly mortgage repayment after a top up to your mortgage, you are looking for the lowest rate you can get,” he notes. “This green rate from AIB was the lowest in the market from what I could see during my research since I began this process. When you want a top up on your mortgage, you’re always looking to see how much savings you can make because you know that the remortgage monthly payment is going to be increasing anyway.”
In 2024, AIB doubled its mortgage switching payment to €3,000 to cover the costs of switching for customers switching their mortgage to AIB - Rashed notes this was a “major bonus”. Yet the biggest benefit for him was how straightforward and stress free the whole process was. “This was my third time switching and it was by far the easiest. The negotiations with the bank and the approval was actually the quickest part of the whole process.”
Rashed cites, in particular, the helpfulness of the MyMortgage App developed by AIB; this allowed him to control his application via his phone, uploading the necessary documents safely and securely and communicating with his mortgage advisor whenever something needed clarification. “The portal is great, it makes everything so much easier and more flexible,” he says.
“At AIB, we recognise that a mortgage is one of the most significant financial commitments a person can make,” says AIB’s area head of homes for Dublin and Mid East Mick O’Beirne.
“We are dedicated to supporting our customers every step of the way, whether they are first-time buyers or reviewing their options. Our team is always here to provide guidance, answer questions, and help our customers find solutions that best suit their individual needs. Allied to this is our digital journey to help customers manage their application at any time, at their own convenience. We believe in building lasting relationships, grounded in trust and community, so our customers feel confident throughout their homeownership journey.”
Rashed urges other mortgage holders to consider switching to a better interest rate, saying the process will not always be as complex or as drawn out as they might fear. “Just do the calculations and it makes sense. The result is definitely worth the process, but AIB makes the process much easier.”
