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AIB ‍and ⁣EBS ‍Mortgage Rate Cuts: What Homeowners Need to Know

AIB ‍has reduced a number of its non-green fixed mortgage rates by ⁤up to 0.65 per⁤ cent,with other lenders across the group also reducing rates. ⁣These ⁤cuts, ⁢impacting both new and existing ‍customers, come into effect on October 24th and could benefit over 10,000 people each month, saving as much as €105 monthly.

What Happened?

AIB Group, encompassing AIB, EBS, and Haven, announced meaningful reductions to its fixed mortgage rates. The most significant cuts – up‍ to 0.65 per cent – apply to AIB’s five-year⁢ fixed rates for non-green mortgages with higher ⁤loan-to-value (LTV) ratios. EBS has also reduced its green four-year fixed rates by 0.35 per cent, alongside cuts to its non-green rates.Haven has implemented cuts of up to 0.35‍ per cent on‍ selected non-green mortgage rates.

What Does This mean for Homeowners?

These rate ⁣reductions are‍ a positive development for Irish homeowners, particularly those facing increased financial pressure due to the rising cost of living. Lower mortgage‍ rates translate directly into reduced monthly repayments, freeing up disposable income. The extent of the savings depends on several ⁣factors, including ⁤the LTV ratio, the mortgage term, ⁣and the original fixed rate.

Impact Based on Loan-to-Value (LTV)

The size of the rate reduction varies depending on the LTV ⁤ratio. here’s a breakdown:

• LTV 80% ⁣or higher: Customers ⁣will see ⁣the largest reductions, up to 0.65% on AIB’s five-year fixed rate.
• LTV 50% or⁣ less: Rate cuts of 0.35% will⁢ apply to the two-year⁣ fixed rate mortgage.

example Savings

Consider a ⁣customer with a €300,000 AIB⁣ one-year fixed rate mortgage with⁢ an LTV over 80 per cent and a 25-year term. Before the ⁤rate cut, their monthly repayment was ⁤€1,500.67. After⁤ the reduction, their monthly repayment will fall⁣ to €1,395.62 – ‍a saving of €105 ⁢each month, or €1,260 annually.