AIB subsidiary Haven is to reduce the interest rate on its seven and ten year fixed rate mortgages.

Haven said the new seven and ten year fixed rates of 2.65% and 2.85% will provide customers with longer term certainty while allowing them to save money on their monthly mortgage repayments.

The reduced rates are available to new and existing mortgage customers regardless of their Loan to Value (LTV), the lender added.

Haven said the new rate represents a monthly saving of €74, and an annual saving of €888 for a 25 year mortgage of €285,000 compared to a variable rate mortgage for the same amount and term.

Today's rate reduction follows the recent introduction of Haven's first Green Mortgage which offers customers with a Building Energy Rating (BER) of between A1 and B3 a low cost four year fixed rate of 2.15%.

Haven managing director Kieran Tansey said the lender is providing home owners and first time buyers with better value and the long term certainty of a fixed rate mortgage with its new reduced seven and ten year fixed rates.

"Our reduced rates provide customers certainty on their repayments for a longer period of time, while also lowering their monthly mortgage repayments," he added.

Brokers Ireland said the reductions present attractive savings for mortgage holders.

"Mortgages are long-term products and such savings make a substantial difference over time," said Rachel McGovern, Director of Financial Services at Brokers Ireland.

"Long-term fixed interest rates give a strong level of predictability and security to mortgage holders, knowing what their future financial outgoings are going to be and enabling them plan better for the future."

She added that long-term fixed interest rates are relatively new to the Irish market, but they have been the norm across Euro zone countries for some time.