AIB Group has announced a major reduction in its non-green fixed mortgage rates, effective from May 13, 2025. The move could help some customers save up to €125 per month, offering some welcome relief for homeowners and buyers in a changing interest rate environment.
What’s Changing?
From May 13, AIB will cut its two-year fixed rate for non-green mortgages by 0.75%, reducing it from 4.45% to 3.7% for customers with a loan-to-value (LTV) ratio under 50%. All other non-green fixed rates will drop by 0.5%, excluding the bank’s “High Value Four-Year” fixed rate. These new rates will be available to both new and existing customers across AIB, EBS, and Haven.
For example, a new €300,000 two-year fixed mortgage with a 50–80% LTV over 25 years will now have a monthly repayment of €1,557.37, down from €1,682.35. That’s a monthly saving of €124.98, or €1,499.76 per year, amounting to over €5,177 across the full term.
Why Now?
These changes follow the European Central Bank’s seventh interest rate cut since June 2024, with rates now down a total of 1.75%. The ECB’s key rate currently sits at 2.5%, with policymakers signalling continued focus on making credit more affordable as inflation eases and economic growth remains patchy across the eurozone.
For AIB, the cuts are positioned as part of a broader strategy to support customers — especially those nearing the end of earlier fixed-rate periods or living in areas where homes don’t meet the criteria for green mortgage products.
What About Deposit Rates?
AIB is also reducing interest on its one- and two-year fixed-term deposit accounts by 0.25% and 0.5% respectively, also taking effect from May 13. All other savings and deposit products will remain unchanged for now.
Geraldine Casey, AIB’s Managing Director of Retail Banking, said the changes reflect a “balanced and measured” approach. She noted that the bank continues to offer competitive savings rates, especially for customers who need instant access to their funds.
What It Means for Homebuyers
For those nearing the end of a previous fixed rate or considering switching, the timing could work in their favour. Many fixed rates taken out over the past two years were priced during a peak in interest rates. AIB’s move to adjust downwards may offer a smoother transition for these customers, especially those in regions where green-rated homes (B3 or better) are hard to find.
As housing supply remains a concern in Ireland, rate cuts could improve affordability—but they might also stoke further competition in a tight market. While borrowers gain, there’s still pressure on policymakers and lenders to address structural challenges in supply.
Make the Most of AIB’s New Lower Rates
With AIB’s rate cuts about to kick in, it’s a good moment to take stock. If you’re a first-time buyer, your fixed term is ending, or you’ve been thinking there might be a better deal out there, now’s a chance to see if you can bring your repayments down or stretch your budget a bit further. Even a small shift in the rate can have a big impact over time.
Get Personalised Support from the Experts at All Financials
Our experienced team is here to help you make sense of the changes. From explaining what the new rates mean for your current deal, to helping you compare offers across the market, we’ll keep things clear and stress-free.
Get in touch today to see how much you could save — or book a free consultation to explore your mortgage options with expert support at every step.
Author: Fran Cooke
