Business news

AIB (NI) cuts fixed mortgage rates by up to 0.90%

Posted By:

13th Feb 2024

AIB (NI) is cutting interest rates across its 2 Year and 5 Year Fixed Mortgages, with reductions of up to 0.90%, supporting those aiming to get on the property ladder, investing in energy efficient properties and homeowners looking to move home, or lock in a new rate.


On a 2 Year Fixed Rate, customers can benefit from a 4.39% rate where the loan represents 60% of the value of the home. This compares with 5.15% previously.

Customers seeking a 5 Year Fixed Rate mortgage where the loan represents 60% of the value of the home can receive a rate of 4.09% compared to 4.99% previously. The bank provides mortgage rates across these products up to 95% Loan To Value (LTV), subject to terms and conditions.

The bank is also reducing the rate to 3.99% for customers seeking a Green Five Year Fixed Rate mortgage where the loan represents less than 60% of the value  of  an energy efficient home.

Illustrative Example:

  • Property Value: £200,000
  • Loan value: £120,000
  • Loan term: 20 years
  • Loan Type: Green Fixed rate for 5 years, reverting to standard variable rate for the remaining term.
  • Initial monthly repayments: £735.17, followed by a repayment of £941.08 for the remaining term.
  • Fixed rate: 3.99% for 5 years
  • Standard variable rate: currently 7.75%
  • APRC (annual percentage rate of charge): 6.33%
  • Number of monthly instalments: 240
  • The following fees are included in the calculation for this example:
    • Valuation fee, £200
    • Funds transfer fee, £30;
    • Mortgage exit fee, £55;

Brian Gillan, Head of Retail and Northern Ireland at AIB said;

“We constantly review our services and offering to best support customers, and we are thrilled to deliver this impactful range of interest rate cuts across core products in our mortgage portfolio. We understand how challenging it can be for homeowners and potential buyers in the current climate and by reducing potential mortgage repayments we can help customers achieve the life they are after.”

“Since it was launched in 2020, our Green Mortgage for properties that have an Energy Performance Certificate (EPC) rating in bands A or B has proved incredibly popular. Through a reduced rate, we are hoping to reward even more conscientious homeowners or buyers who want to embrace energy efficiency.”