AIB Mortgage Ultimate Review – Ireland 2024

AIB Mortgage

In our AIB Mortgage Ultimate Review – Ireland 2024 we will give you the inside track on a AIB mortgages and the alternatives.

As someone who used to lead the mortgage product team in PTSB, I’ve always considered an AIB mortgage as a decent option.

Unlike the other two Irish banks, AIB have been pro-active in passing on rate cuts to customers with their typical follow on rate around the 3% mark versus 4% with Bank of Ireland and PTSB.

This means AIB mortgage rates have a relatively attractive average percentage rate of charge (APRC), which means you will pay much less interest than the other banks over the full lifetime of the mortgage.

That said their rates still aren’t as good as the non traditional lenders. So if it’s value you are after you should go to a broker who can offer these rates and also access most of AIB’s rate through AIB’s broker arm Haven.

Standard Mortgage Average Rate (3-7yr) at LTV 50%
Fixed Term APRC Avant Money MoCo Haven Mortgages AIB Mortgage EBS Mortgage Permanent TSB Bank of Ireland ICS Mortgages Finance Ireland
3 Yr 3.97% 5.21% 4.00% 4.09% 4.20% 4.61% 4.60% 6.64%
4 Yr 3.90% 4.19% 4.28%
5 Yr 3.97% 5.06 4.30% 4.47% 4.50% 4.72% 4.60% 6.35%
7 Yr 3.95% 4.60% 4.58% 4.79% 6.04%
Correct as of 26/04/24. APRC = Average Rate paid across the whole mortgage term, table, excludes Mortgage value >€250,000, excludes Green Mortgages, BoI based on C BER Rating

The bottom line is that AIB probably only makes sense for you if you have a low loan to value (LTV) and you are unable to get a mortgage with Avant Money due to credit history or the location of your home.

You can see how AIB Mortgage rates compare to the other options in the market for your needs here.

Read on to find out if an AIB mortgage makes sense for you and the other options for a great rate and easy approval.

  1. AIB Mortgage Rate and Product Overview – AIB Mortgage Ireland 2024
  2. Pro’s & Con’s – AIB Mortgage Ireland 2024
  3. Recommendation – AIB Mortgage Ireland 2024
  4. Alternatives – AIB Mortgage Ireland 2024
  5. In a Nutshell – AIB Mortgage Ireland 2024

AIB Mortgage Rate and Product Overview – AIB Mortgage Ireland 2024

AIB Mortgage Rates

First let’s take a look at how AIB’s introductory rate stacks up at the most popular fixed rates of 3 and 4 years.

An AIB mortgage performs pretty well on introductory rate, coming in second place at LTV’s below 50%, dropping to 3rd place below 60% and getting matched by its own broker arm Haven for LTV’s above 70%.

3 Year Fixed Rate APRC Comparison by LTV
3 Year Fixed APRC Avant Money MoCo ICS Mortgages Finance Ireland Haven Mortgages AIB Mortgage EBS Mortgage Permanent TSB Bank of Ireland
Up to 50% LTV 3.97% 4.82% 6.64% 4.50% 4.09% 4.60% 4.65% 4.60%
Up to 60% LTV 3.97% 4.82% 6.78% 4.50% 4.09% 4.60% 4.51% 4.60%
Up to 70% LTV 3.97% 4.82% 6.16% 6.80% 4.50% 4.29% 4.60% 4.68% 4.60%
Up to 80% LTV 3.97% 4.82% 6.39% 6.80% 4.50% 4.46% 4.60% 4.68% 4.60%
Up to 90% LTV 4.05% 4.82% 6.43% 7.06% 4.50% 4.46% 4.60% 4.98% 4.60%
Rates updated 26/04/24
4 Year APRC Comparison by LTV
4 Year Fixed APRC Avant Money Haven Mortgages* AIB Mortgage Permanent TSB EBS Mortgage* Bank of Ireland**
Up to 50% LTV 3.90% 4.00% 4.19% 4.28% 4.00% 4.00%
Up to 60% LTV 3.90% 4.00% 4.19% 4.39% 4.00% 3.90%
Up to 70% LTV 3.90% 4.00% 4.19% 4.39% 4.00% 4.20%
Up to 80% LTV 3.90% 4.00% 4.38% 4.57% 4.00% 4.10%
Up to 90% LTV 4.11% 4.00% 4.54% 4.57% 4.00% 4.40%
*Green Rate, rates updated 26/04/24

Annual Percentage Rate Charge (APRC) calculated on a €100,000 loan over 20 years. APRC represents the average rate across the lifetime of a typical mortgage and is recommended as the best rate to use for comparisons by the CCPC. [1]

AIB Mortgage Follow On Rate

If you aren’t switching your mortgage to another provider the rate you will pay after your fixed period is up is the one that matters most for the overall cost of your mortgage.

These rates are often hidden away by providers pushing the upfront introductory rate or cash back offers.

AIB Mortgages are in the middle of the pack on follow on rates, offering the best of the bank or bank owned follow on rates. That said, the rates from Avant Money are considerably lower giving them the definite upper hand on best value across the whole term of your mortgage.

Variable/Follow On Rates Comparison
Follow on Variable Rate Avant Money ICS Mortgages Finance Ireland Haven Mortgages AIB Mortgage MoCo EBS Mortgage Permanent TSB Bank of Ireland
Up to 50% LTV 3.75% 6.20% 6.40% 3.75% 3.75% 5.20% 4.15% 4.40% 4.15%
Up to 60% LTV 3.75% 5.95% 6.20% 3.95% 3.95% 5.20% 4.15% 4.50% 4.15%
Up to 70% LTV 3.75% 6.95% 6.20% 3.95% 3.95% 5.20% 4.15% 4.50% 4.15%
Up to 80% LTV 3.95% 6.20% 6.20% 4.15% 3.95% 5.20% 4.15% 4.70% 4.15%
Up to 90% LTV 3.95% 6.20% 5.15% 4.15% 4.15% 5.20% 4.15% 4.70% 4.15%
*Probable follow on variable rates post fixed period based on current variable rates by provider, rates updated 26/04/24. PTSB rates applicable from 17/01/24

Probable follow on variable rates post fixed period based on current variable rates by provider

The follow on rate makes a huge difference to the cost of your mortgage.

A 25 year €285,000 mortgage for example would cost €387,574 with Avant Money and €398,429 with AIB. That makes Avant Money over €12,000 cheaper over the term of the mortgage.

AIB Mortgage Cash back

You can see how an AIB Mortgage stacks up against other providers for Cash back in the table below.

Compare Cash back Cash back Min Cash back Max Cash back Conditions
MoCo 1% 1% Switcher
Haven Mortgages €3,000 €5,000 Switcher, €5,000=>€250,000 not 4yr green rate
AIB Mortgage €0 €2,000 Switcher Only
Permanent TSB 0% 2% 2% not available to 4 year fixed term.
EBS Mortgage 2% 3% 2% on drawdown 1% after 5 years.
Bank of Ireland 2% 3% 2% on drawdown 1% after 5 years.

Rates updated 26/05/23

The long term cost of the mortgage is often hidden by providers behind cash back offers and introductory rates. Check out our comparison of cash back and rates after the introductory period below.

AIB Mortgage Approval Types

An AIB Mortgage is available for First Time Buyers, Next Time Buyers (Movers), Switchers, Self Build and Top Up (Equity Release).

They also offer foreign exchange (fx) mortgages that allow people buying from abroad to obtain a mortgage if eligible.

The AIB Green Mortgage needs a document known as a Building Energy Rating (BER), which essentially is a calculation of how energy efficient your home is. BER certificates are valid for up to 10 years. 

The BER measures how energy efficient your home is on a scale of A to G, with A being the most energy efficient your home can be.

You will require a BER rating of at least B3 in order to qualify and apply for an AIB Green Mortgage. All new build homes qualify for an AIB green mortgage as new builds have to be rated B3 or above by law.

If you are self building you can’t get a BER rating until the completion of your build, unlike other lenders AIB don’t make a loan offer based on the assumption that your property qualifies for a green rate. This is pretty crazy given that all properties nowadays must have a B3 or higher rating.

Green and High Value Average Rates at LTV < 90%
APRC Avant Mortgage ICS Mortgages Finance Ireland Haven Mortgages AIB Mortgage EBS Mortgage Permanent TSB Bank of Ireland
3 Yr 4.05% 6.43% 6.26% 4.50% 4.46% 4.60% 4.66% 4.50%
4 Yr 3.98% 4.00%* 4.42%* 4.00%* 4.57% 4.00%*
5 Yr 4.05% 6.26% 7.42% 4.60% 4.01%* 4.80% 4.64%* 4.50%*
7 Yr 4.05% 4.90% 4.90% 5.13% 4.10%*
LTV < 90%, *Includes Mortgage value >€250,000 or Building Energy Rating B3+, BoI assumes A BER, rates updated 26/04/24/

This means quite a lot of extra paperwork for AIB compared to other lenders, which might be enough to put you off getting a self build mortgage with AIB.

AIB Mortgage Approval Credit Policy

AIB are in the goldilocks zone for mortgage approvals, with a reputation for not being too tight or too loose.

Our data indicates that approvals are broadly in line with those given at their subsidiaries of Haven and EBS. Generally their credit approval policy will suit most applicants.

Pro’s & Con’s – AIB Mortgage Ireland 2024

Pro’s

  • Attractive short term rates @ up to 60% LTV in particular the 4 year Green Mortgage
  • Cash back of €2,000 to €5,000

Con’s

  • At LTV’s above 60% Avant Money have better introductory rates
  • Avant Money have better follow on rates around 0.25% better on average
  • AIB’s green mortgage for self builders is a lot of admin hard work

Recommendation – AIB Mortgage Ireland 2024

So an AIB mortgage is pretty competitive combination of introductory rate and cash back, in particular the AIB green mortgage is a pretty good offer.

The big downside on AIB mortgage rates though is for most customers Avant Money offer a better rate and more security, even though it’s not a green rate. That’s because Avant don’t have the same costs as AIB so can price more competitively.

The other big downside in going with AIB is you will have to sort the paperwork, legals and insurance yourself. That’s why we recommend using a mortgage broker to access the AIB mortgage rates through their broker arm Haven.

Rank Mortgage Product Rate Value Repayment Security Ease of Approval Approval Speed Overall Rating
#1. Avant Money Mortgage 10-30 Yr Fixed 4.25 5.0 4.0 5.0 4.58
#2. Avant Money Mortgage 7 Yr Fixed 4.25 3.5 4.0 5.0 4.13
#3. Haven Mortgage 10 Yr Fixed 3.5 4.0 3.5 5.0 3.95
#4. Avant Money Mortgage 5 Yr Fixed 4.5 2.5 4.0 5.0 3.90
#5. Haven Mortgage 7 Yr Fixed 4.0 3.5 3.5 3.0 3.55

Rating Weighting: Rate 30%, Security 30%, Approval 20%, Speed 20%, updated 26/09/2023

Alternatives – AIB Mortgage Ireland 2024

Green and High Value Average Rates at LTV < 90%
APRC Avant Mortgage ICS Mortgages Finance Ireland Haven Mortgages AIB Mortgage EBS Mortgage Permanent TSB Bank of Ireland
3 Yr 4.05% 6.43% 6.26% 4.50% 4.46% 4.60% 4.66% 4.50%
4 Yr 3.98% 4.00%* 4.42%* 4.00%* 4.57% 4.00%*
5 Yr 4.05% 6.26% 7.42% 4.60% 4.01%* 4.80% 4.64%* 4.50%*
7 Yr 4.05% 4.90% 4.90% 5.13% 4.10%*
LTV < 90%, *Includes Mortgage value >€250,000 or Building Energy Rating B3+, BoI assumes A BER, rates updated 26/04/24/
Best Buys

Avant Money Mortage

  • From 3.61% aprc
  • Years Fixed: 3-30
  • Approval Policy: Tight
Best Buys

Haven Mortage

  • From 4.00% aprc
  • Years Fixed: 3
  • Approval Policy: Complex
Best Buys

Bank of Ireland

  • From 3.90% aprc
  • Years Fixed: 4
  • Approval Policy: Flexible

In a Nutshell – AIB Mortgage Ireland 2024

Although AIB is the best of the traditional banks the non bank lenders Avant Money and Haven offer the best combination of rates and approval flexibility for most people looking for a mortgage.

Rates with these lenders are typically 30% lower than the banks as they aren’t carrying the cost of supporting tracker mortgage customers.

Haven, Avant Money, ICS Mortgages and Finance Ireland are available through brokers or through one our mortgage sherpas.

Next Steps – AIB Mortgage Ireland 2024

If you want to see what you could save by calculating your repayments and see all mortgage provider rates you can click here.

If you want to know more about other mortgage providers you can click here.

If you want to know more about long term fixed rate mortgages you can read our article here.

If you want to know more about shorter term fixed rates, you can check out our deep dive best fixed rate mortgage piece here.

If you want to get your savings started right now, set up a free no obligation video call with a mortgage sherpa here, covering not only the best rate, but also helping choose the lender most likely to approve you and helping take the pain out of the paperwork.

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