AIB: cuts the rates of the green mortgage over five years to fixed rate AIB and introduces the green personal loan


March 5, 2021

AIB cuts rates on five-year fixed-rate green mortgage AIB and introduces green personal loan

  • ï‚· Lowest five-year fixed-rate green mortgage on the Irish market

  • ï‚· Help clients reduce their mortgage payments, fuel bills and carbon footprint

  • ï‚· AIB funded 380 M € in Green mortgages for energy efficient homes

  • ï‚· Supports AIB personal loan customers considering green improvements

AIB cuts interest rates on its five-year fixed-rate green mortgage down to 0.20%, which will allow the bank to offer the lowest five-year fixed-rate green mortgage on the Irish market while helping clients reduce their personal carbon footprint.

The bank cuts the rate to 2.10% for customers looking for a five-year fixed-rate green mortgage when the loan is less than 50% of the value (LTV) of an energy-efficient home.

AIB is also reducing rates to 2.15% for customers who take out a five-year fixed rate green mortgage between 50% and 80% of the value of the home. This compares to 2.35% previously.

Customers looking for a mortgage of more than 80% of the value of the home will be offered a rate of 2.25% fixed for five years against 2.45% previously.

AIB customers on a variable rate of 3.15% would save € 130 on their refunds, and € 1,560 per year, if they move to AIB‘s Five-year fixed rate green mortgage of 2.25%. The calculation is based on a 25-year mortgage with a balancebalance of € 285,000, an asset valued at € 350,000 and an LTV of> 80%. Customers will also save on their heating bills by choosing to live in an energy efficient home.

AIB CEO Colin Hunt said: Managing climate change is the most important challenge facing this generation and the role of finance in supporting the transition to a low carbon economy is essential. At AIB, we have placed sustainable development at the heart of our business strategy. Decreasing prices on AIB‘s The five-year fixed-rate green mortgage will provide clients with greater repayment certainty, long-term security and yet another reason to take action to reduce their personal carbon footprint and support the transition to a low-carbon future. carbon. In addition, the new AIB Green Personal Loan will also help borrowers finance other live more sustainably. ”

The AIB Green Mortgage is available to clients of private residential homes with a Building Energy Rating (BER) between A1 and B3. Energy savings can be substantial. For example, a two bed A- The listed apartment has an estimated annual fuel bill of € 280 compared to € 3,000 for a Gclassified apartment, with a clear positive impact on carbon emissions.

The green mortgage has already proven to be very appealing to clients looking for warmer, less expensive homes to heat, lower monthly mortgage payments and to know they are gambling. their role in Ireland’s efforts to tackle climate change. Customers withdrew € 380m from AIBGreen Mortgages since the launch of the product in aufall 2019, of which € 335m drawn in 2020. This is equivalent to 14% of the AIB Group’s draws in 2020.

In line with our commitment to ensuring a climate resilient business model, AIB is committed to providing our customers with products and services that address environmental challenges as we seek to play our role in helping the Irish Government and the European Union to meet their carbon reduction targets.

Recognizing that around 10% of Ireland’s carbon emissions come from households, AIB is actively working to encourage customers by offering them discount green mortgages to buy more energy efficient homes. AIB estimates that the green mortgages sold so far will have the potential to reduce CO2 emissions by approx. 212,592 tonnes over 30 years. The emissions savings are equivalent to powering five wind turbines for 30 years.

AIB has also set up a Green Personal Loan at a variable rate of 6.25% (6.4% APR) for our mobile banking customers who wish to live more sustainably by carrying out green renovations in their homes or by purchasing an electric vehicle. / plug-in hybrid. Customers can take out a Green Personal Loan for up to five years for amounts ranging from € 3,000 to € 30,000. Based on AIB € 20,000 Five-Year Standard Personal Loan, this new green rate would represent savings of approx. € 1,352.40 over a five-year period.

Notes to Editors:

1. Summary of mortgage rate changes

Ready to Value (LTV)

AIB Green fixed mortgage rates over 5 years






– 0.15%

> 50%



– 0.20%

> 80%



– 0.20%

  • 2. Rates apply to homeowners, primary residential mortgage customers who purchase energy efficient homes with a Building Energy Rating (BER) between A1 and B3.

  • 3. The revised fixed rates are effective from today for all new customers and the existing variable rates. clients who wish to opt for AIB’s five-year fixed rate green mortgage. If an existing customer already has a fixed rate and wishes to benefit from the new rates, prepayment charges may apply.

  • 4. The changes included in this announcement apply only to AIB customers in the Republic of Ireland.

  • 5. In accordance with its sustainable development strategy, AIB has, over the past two years:

    • o Announcement of a € 5 billion climate action fund to support customers’ transition to a low-carbon economy economy

    • o € 1 billion raised first Irish bank green bond issue

    • o Announcement AIB ambition to see green loans represent 70% of new customer loans by 2030

  • o Launch of the AIB green mortgage

  • o Stated ambition to make its operations carbon neutral by 2030 using a net zero approach

  • o Received an A leadership rating from the Carbon Disclosures Project (CDP)

  • o Become a founding signatory of the UNEP FI Principles for a Responsible Bank and a supporter of the Climate Related Financial Disclosures Working Group (TCFD) since Q4 2019

  • o Engaged 1.25 million euros to fund the first sustainable business chair in Ireland at University College Cork

Media inquiries:

[email protected] 087 739 0743

[email protected] 085 208 8343


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