New Green mortgage offering one of Ireland’s lowest rates

AIB’s mortgage subsidiary Haven has launched a new, four-year, fixed rate green mortgage with one of the lowest rates currently available on the market.

Haven is a wholly-owned subsidiary of AIB which focuses solely on mortgage distribution through brokers. They offer a broad selection of fixed and variable rate mortgages to customers including first time buyers, movers, switchers, and investors.

The mortgage has a rate of 2.15 percent, and applies to both new and existing customers with a Building Energy Rating (BER) of between A1 and B3. The BER cert must also be less than 10 years old in order to be eligible. All new builds are expected to qualify for the low rate, and existing customers who remodel their home to meet the BER requirements will also qualify.

According to AIB, this low rate could result in substantial savings for the average customer. The lender reports that the new rate allows customers of a 25 year, €300,000 mortgage to save €155 monthly. This equates to a savings of €1,800 per year over the lifetime of the loan, when compared to variable rates over a similar term.

Switching customers will see a benefit as well, as customers who switch will receive €2,000 towards legal costs. This is expected to incentivize green homes by rewarding people in their wallets, in addition to helping save the environment. Speaking on this matter, Haven managing director Kieran Tansey says “Haven’s new Green Mortgage offers customers substantial savings on their monthly mortgage repayments compared with variable rates. We’re making this new Green Mortgage rate available to new and existing customers who will see the benefit of their green homes in their wallets”.

Another feature of this loan that will make it attractive to customers is that it is open to all loan amounts to the value of the home. This is hugely important because it means that all first time buyers will be able to qualify, says Karl Deeter of First time buyers are required a deposit of at least 10% of the home’s  price, and typically the lowest rates are reserved for buyers who have more equity in the home, i.e. a larger deposit.

This also will be an incentive for many homeowners to retrofit their homes to meet the BER requirements. Not only will their homes be more comfortable and efficient, but they will be able to save a considerable amount of money.

This has driven competition between lenders as well. Rival lender Bank of Ireland has recently announced plans to expand its green mortgage offerings. Previously, Bank of Ireland green mortgages were only available to those customers with a BER of A3 or higher. Now, they have lowered the requirement to B3 or higher.

You can find more information on Haven’s Green Four Year Fixed-Rate mortgage and browse their other offerings here.

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