AIB cuts 4 year fixed rate for loans of €250,000 or more

AIB is reducing its four-year fixed mortgage rate for customers borrowing €250,000 or more by 0.25% from July 3.

The bank said the new rate is also available to its existing mortgage customers with a balance of at least €250,000.

Recent CSO figures show that the average house price in Ireland is €335,000, and AIB said its four-year fixed mortgage rate has proved popular with customers seeking the security of a fixed rate.

These latest reductions follow a number of cuts to green mortgage rates by the AIB Group in April.

AIB’s Managing Director of Retail Banking, Geraldine Casey, said the latest mortgage rate cuts broadens the bank’s range of mortgage rates and complements those announced in April.

“The reduction announced today could save customers about €500 per year and aligns with our customer first strategy,” she added.

AIB said a monthly repayment on a new €300,000 AIB four-year fixed rate mortgage, available for mortgages of €250,000 or more with a loan to value of 50-80% over a 25 year term, will be €1,598.32.

The previous monthly repayment would have been €1,639.97, representing a saving of €41.65 per month, €499.80 annually, or €3,353.35 over the 25 year term.

AIB said that switcher customers who meet the criteria and wish to avail of the fixed rate will also benefit from the lender’s €3,000 Switcher cash offer.