EBS and Haven cut some mortgage rates and extend cash-back offers
It comes the day before European Central Bank (ECB) meeting, where wholesale lending rates are expected to be left on hold.
The EBS and Haven cuts are for non-green mortgages and apply to new and existing customers coming off fixed rates or moving from a variable rate with the lenders.
Broker Michael Dowling questioned why the EBS and Haven 'green rates' were not coming down.
The 0.50 point reductions are for the EBS two-year fixed rate product and the Haven three-year fixed rate product.
Both Haven and EBS are also reducing all other non-green fixed rates by 0.20 percentage points.
The new rates are available to new and existing customers from this Thursday.
The reductions are in line with the falling interest rate environment and AIB's commitment to delivering value for customers, particularly those whose homes don't have a Building Energy Rating of B3 or higher, AIB Group said.
The reductions will also help customers coming to the end of their fixed term, as they roll off historically lower rates into an environment where rates are now higher, it said.
Customers who are switching their mortgage to EBS and Haven and meet the criteria will also benefit from the extension of the 'Cashback' and 'Switcher' offers to the end of December 2026 on certain products.
The EBS Back in Cash offers give 2pc of the value of a mortgage upfront, plus 1pc after five years.
There is also an offer of €3,000 in cash back from EBS on its green mortgage.
Haven has a €5,000 cashback offer for new borrowers, and a €3,000 cash offer for switchers.
Managing director of EBS and Haven director Paul Butler said: 'AIB Group, through AIB, EBS and Haven, believes it's critical we offer a wide variety of choice, value and convenience for customers seeking to buy their home, or switch their mortgage.'
Mr Butler said a monthly repayment on a new €300,000 EBS two-year fixed rate mortgage, over a 25 year term, will be €1,566.99.
The previous monthly repayment would have been €1,650.52, representing a saving of €83.53 per month, or €1,002.36 a year.
A monthly repayment on a new €300,000 Haven three-year non-green fixed rate mortgage over a 25-year term will be €1,542.39.
The previous monthly repayment would have been €1,625.21, representing a saving of €82.82 per month, or €993.84 annually.
Michael Dowling of Irish Mortgage Brokers said last October AIB announced significant rate reductions to its 'green rates' making them the cheapest in the market.
However, these reductions did not apply to EBS or Haven mortgage customers, despite the fact that both banks are 100pc owned by AIB.
He said the 0.50 percentage points reduction only applies to the two-year fixed option with EBS and the three-year fixed option with Haven.
'The other non-green rates for AIB, EBS and Haven remain expensive compared to what competitors are offering,' Mr Dowling said.
'Extraordinarily, nine months later, there are no rate reductions to the 'green' rates from EBS and Haven.'
Mr Dowling questioned why AIB 'discriminates' in the rate offering from the three entities within the group.
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