AIB’s broker-only mortgage channel Haven has cut its seven and ten year fixed mortgage rates to 2.65% and 2.85%.
The new rates are available to new and existing mortgage customers regardless of their Loan to Value ratio.
According to the company, the new rate represents a monthly saving of €74, or an annual saving of €888 on a 25-year mortgage of €285,000, compared to a variable rate mortgage for the same amount and term.
Haven is also offering new customers, whether first-time buyers, buying their next home, buying a holiday home or switching a mortgage, €5,000 cashback where the fixed interest rate part of the mortgage is €250,000 or more, and the mortgage is taken out before the end of the year.
Switching customers who do not meet the criteria for the cashback payment can avail of €2,000 towards the cost of switching.
In Association with
Joey Sheahan of My Mortgages commented: “With Haven slashing its seven and ten year fixed-rate mortgage offerings and ongoing bank-beating deals from Finance Ireland and Avant Money, all of which are offered through mortgage brokers, the mortgage market has grown increasingly competitive both for first-time buyers and those looking to switch mortgage or trade up.
“We predict a massive upswing in existing homeowners looking to switch to reduce their monthly payments, or to secure long-term cost certainty with one of the new fixed rate offers, or in some cases both.
“We also anticipate some reaction from the larger banks as they really need to react strongly if they are to hold on to their existing mortgage customers. So it looks like 2022 will be a boom year for mortgage switching.”
According to Haven, a customer with a mortgage of €285,000 over 25 years who chooses the new seven-year fixed rate of 2.65% will have monthly repayments of €1,300, a saving of €74 per month for the first seven years compared to the variable rate of 3.15%.
Over the course of 25 years, the customer will have saved over €10,000 by availing of the fixed rate instead of remaining on the variable rate, based on the customer reverting to the variable rate of 3.15% after seven years.
