AIB subsidiary Haven has announced plans to cut interest rates across a range of its mortgage products, reducing monthly repayments for about 7,000 of its customers from next month.
The rate cut is the fifth rate reduction from Haven in three years, and follows a similar move from AIB last month. Haven’s offering, which is sold through the broker network, is now in line with that of its owner, AIB.
The largest cut is on Haven’s five-year fixed rate, which has fallen from 3.8 per cent to 3.3 per cent. The lender’s one-year fixed rate has fallen by 30 basis points to 3.2 per cent, and its two-year rate is down by 40 basis points, also to 3.2 points. The standard variable rate is to fall to 3.15 per cent, down from 3.4 per cent currently, while the lender will now offer a rate of as low as 2.75 per cent on mortgages where the loan-to-value is less than or equal to 50 per cent.
The lender said that thanks to rate cuts over the last three years, a borrower with a mortgage of €200,000 will have saved about €1,500 a year.
The fixed rate changes will come into effect from tomorrow October 6th 2017, while new business variable rates will apply from October 18th 2017. The SVR reduction, applicable for existing variable rate customers, will apply from November 1st 2017.