AIB’s broker-focused section recently introduced a green mortgage that offers competitively low rates, one of the lowest out there. The four-year fixed rate by Haven is set at 2.15 percent. Both existing and new homeowners can take advantage of this new offering. Further, the rate is acceptable regardless of the loan-to-value ratio.
In typical situations, a rate as low as this one would require the customer to put down a sizable deposit and those that already own a home would need to have a substantial amount of equity in their house.
These green mortgages are dependent on the homes’ Building Energy Rating (BER). It is near certain that every single new home built will be entitled to the mortgage as they are built to meet the energy standard. Additionally, people who already own a home will be able to upgrade their property to meet the necessary rating.
AIB has stated that the rate would allow consumers to save about €155 per month with a 25-year contract of €300,000. In total, this would amount to €1,800 of savings each year. Consumers that choose to convert to Haven to take advantage of the ‘Green Four Year Fixed Rate’ option will also obtain €2,000 to go towards any legal expenses.
To qualify for the rate, a person has to be a customer of Haven, either new or existing, have a home that has a BER that is between A1 and B3, and possess an authorized BER certification that is under ten years old. Of their existing customers, a qualifying applicant will need at least four years left on their mortgage.
To give some more background on Haven, it is a unit owned by AIB that concentrates on the allocation of mortgages through brokers. Kieran Tansey, Haven’s managing director, has stated that the rate is exceptional because it will provide customers considerable savings on their mortgage payments in comparison to typical variable rates.
Our founder and CEO here at OnlineApplication.io, Karl Deeter, has stated, “The great thing about this offering is that it’s open to all loan amounts versus the value of the home which makes it accessible to all first time buyers.” With the green mortgages, first time buyers now have access to rates that are typically only available to homeowners that have a lot of equity in their current home.
To apply for the loan, Haven customers will need to complete an application through their selected mortgage broker. The rate will be available starting Thursday July 8th, 2021.
Weston, Charlie. “Haven Launches New Green Mortgage With Low Rate.” Independent.ie, 1 July 2021, https://www.independent.ie/business/personal-finance/property-mortgages/haven-launches-new-green-mortgage-with-low-rate-40601637.html.