AIB units EBS and Haven are cutting the interest rates on non-green mortgages by up to 0.50% for new and existing customers from tomorrow.
The 0.50% reductions will impact the EBS 2-year fixed rate product and the Haven 3-year fixed rate product.
Both Haven and EBS said they are also cutting all other non-green fixed rates by 0.20%.
The reduced rates will be available to both new and existing customers.
AIB said the latest reductions are in line with the falling interest rate environment and the bank's commitment to delivering value for customers, particularly those whose homes do not have a Building Energy Rating of B3 or higher.
The reductions will also help customers coming to the end of their fixed term, as they roll off historically lower rates into an environment where rates are now higher, the bank added.
Meanwhile customers who are switching their mortgage to EBS and Haven and meet the criteria will also benefit from the extension of the lenders' cashback and switcher offers to the end of December 2026.
EBS said a monthly repayment on a new €300,000 two-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 a month, €1,002.36 a year, or €3,506.85 over the 25 year term.
Haven said a monthly repayment on a new €300,000 three 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 a month, €993.84 annually, or €5,187.78 over the 25-year term.
Managing Director of EBS and Haven Director Paul Butler said that AIB Group, through AIB, EBS and Haven, believes it is critical the lenders offer a wide variety of choice, value and convenience for customers seeking to buy their home, or switch their mortgage.
"The reductions of up to 0.50% will help customers save on their monthly repayments.Customers will also be able to avail of our Cashback and Switcher offers," he added.
