Haven, an AIB subsidiary, lowered its four-year “green mortgage” fixed rate to 2% and lowered its standard three-year fixed rate by 0.15%.
The green mortgage rate, which was cut by 0.15% from Tuesday, is available to customers whose homes have a BER rating of B3 or higher, regardless of loan-to-value (LTV) ratio. Haven launched the Green Mortgage in 2020.
The standard three-year rate has been reduced from 2.55% to 2.35% for existing and new customers.
“Haven now offers the most competitive green mortgage on the market, available to all new and existing customers, regardless of their loan to value,” said Kieran Tansey, Managing Director of Haven.
The company is also offering €5,000 cash back to first-time buyers, movers, movers and holiday home buyers who meet certain criteria or €2,000 towards the costs of transferring mortgages to Haven.
The new cuts follow Haven’s cuts to its seven- and 10-year fixed mortgage rates three months ago.
But other mortgage companies have warned that a rate hike could be on the way as inflationary pressures continue. Fergal McGrath, chief executive of Dilosk, a non-bank lender that offers home loans under the ICS brand, told the Irish Times Inside Business podcast that although rate hikes are not currently on the cards, they cannot be ruled out.
Irish consumer price inflation hit 5.5% in December, its highest level in two decades. The Bank of England has already hiked rates in the UK, while the Federal Reserve has announced three rate hikes for this year. To date, the European Central Bank, which sets rates for eurozone countries, has not signaled any hikes.