Mortgage lenders EBS and Haven have reduced interest rates on their non-green mortgages by up to 0.5 percentage points.

EBS will cut its two-year fixed rate by 0.5 points, and Haven will reduce its three-year fixed rate by the same amount.

The AIB subsidiaries will reduce all other non-green mortgage rates by 0.2 percentage points.

The new rates (which can be seen below) come into effect for new and existing customers from Thursday (July 24).

The reductions come after the European Central Bank (ECB) ordered its eighth rate cut in 12 months in June, bringing its key deposit rate down by 0.25 points to two per cent.

EBS and Haven said the reductions will help customers coming to the end of their fixed terms at historically lower rates into an environment with higher lending rates.

Customers who are switching their mortgages to EBS or Haven and who meet the criteria will also avail of their cashback and switcher offers, which have been extended to the end of December 2026.

EBS offers two per cent of the value of a mortgage up front, plus one per cent in five years, as well as €3,000 for customers switching to its green mortgages.

Haven, meanwhile, has the €5,000 cashback and €3,000 switcher offers.

“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," said Paul Butler, managing director of EBS and Haven.

"The reductions of up to 0.5 per cent will help customers save on their monthly repayments.  Customers will also be able to avail of our Cashback and Switcher offers.”  

A monthly repayment on a new €300,000 EBS 2-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, €1,002.36 a year, or €3,506.85 over the 25 year term. 

A monthly repayment on a new €300,000 Haven 3 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, €993.84 annually, or €5,187.78 over the 25-year term. 

Photo: Paul Butler. (Pic: Supplied)