AIB has launched a new green mortgage product with interest rates starting at 3%, the bank's lowest on offer.
The three-year fixed rate will be available to homes with a Building Energy Rating (BER) between A1 and A3 with a loan to value (LTV) of less than 50%.
The rates for an LTV of 50-80% and over 80% are slightly higher, at 3.1% and 3.2% respectively.
The lender is also launching a new two-year fixed rate for homes with a BER of between A1 and B3, starting at 3.15% for an LTV of less than 50%.
New and existing customers will be able to access the products from tomorrow onwards.
"AIB’s commitment to being a leader on sustainability provides tangible supports for customers as we transition to a net zero society," said AIB Managing Director of Retail Banking, Geraldine Casey.
"These two new AIB Green Fixed rates are our lowest mortgage rates and offer the security of a fixed rate combined with value."
The bank said more than €380 can be saved each year on the new three-year fixed rates when compared to the AIB green five-year fixed rate, based on a mortgage of €300,000 with a loan to value of greater than 80% over 25 years.
AIB Group has already cut a number of its mortgage rates this year.
It also recently extended its approval in principle period from six to 12 months.
The development is the latest move by a mortgage provider as competition in the space increases as the European Central Bank further cuts interest rates.
Last week, the ECB reduced rates by another 0.25%, its third cut since June, with an additional reduction expected in December.
ICS Mortgages lowered its variable rates by 0.25% last week, while Finance Ireland also said it would be passing on the ECB cut to variable customers from the end of November.
Bank of Ireland, PTSB, Avant Money, EBS, Haven and MoCo have also all cut their rates at different stages this year.
