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AIB Mortgage Ultimate Review – Ireland 2022

AIB Mortgage

AIB is Ireland’s second largest bank, who also own EBS and Haven. In our AIB Mortgage Ultimate Review – Ireland 2022 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 strong 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 they have an AIB mortgage has an 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.

Average Mortgage Rate (APRC) at LTV <50%3 Yr4 Yr5 Yr7 Yr
Avant Money Mortgage2.44%2.50%2.60%2.81%
ICS Mortgages3.85%3.93%
Finance Ireland Mortgage5.11%5.27%
Haven Mortgages3.20%3.20%3.20%
AIB Mortgage 2.82%2.92%2.84%3.13%
EBS Mortgage3.70%3.60%
Permanent TSB Mortgage3.63%3.49%3.58%3.77%
Bank of Ireland Mortgage3.80%3.7%
APRC = Average Rate paid across the whole mortgage term, table, excludes Mortgage value >€250,000, excludes Green mortgages

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 2022
  2. Pro’s & Con’s – AIB Mortgage Ireland 2022
  3. Recommendation – AIB Mortgage Ireland 2022
  4. Alternatives – AIB Mortgage Ireland 2022
  5. In a Nutshell – AIB Mortgage Ireland 2022

AIB Mortgage Rate and Product Overview – AIB Mortgage Ireland 2022

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 MinCash back MaxCash back conditions
Avant Money€0€0NA
Haven€0€2,000Switcher only
AIB Mortgage€0€2,000Switcher only
Permanent TSB0%2%2% not available to 4 year fixed term.
EBS Mortgage2%3%2% on drawdown 1% after 5 years
Bank of Ireland2%3%2% on drawdown 1% after 5 years

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 Introductory Rate

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 Mortgage Rate
APRC
up to
50% LTV
up to
60% LTV
up to
70% LTV
up to
80% LTV
up to
90% LTV
Avant Money Mortgage2.44%2.44%2.47%2.68%2.70%
ICS Mortgages3.85%3.85%3.86%4.09%4.13%
Finance Ireland Mortgage5.11%5.26%5.27%5.27%5.54%
Haven Mortgages3.20%3.20%3.20%3.20%3.20%
AIB Mortgage2.82%3.01%3.01%3.19%3.19%
EBS Mortgage3.70%3.70%3.70%3.70%3.70%
Permanent TSB Mortgage3.63%3.63%3.77%3.77%4.00%
Bank of Ireland Mortgage3.80%3.80%3.70%4.20%4.20%
4 Year Fixed
APRC Comparison
up to
50% LTV
up to
60% LTV
up to
70% LTV
up to
80% LTV
up to
90% LTV
Avant Money2.50%2.54%2.54%2.74%2.74%
Haven Mortgages* 3.0%3.0%3.0%3.0%3.0%
AIB2.97%3.14%3.14%3.30%3.30%
Permanent TSB3.49%3.49%3.49%3.49%3.75%
EBS3.4%3.4%3.4%3.4%3.4%
Bank of Ireland**3.1%3.3%3.5%3.5%3.8%
*Green Rate **Over €250,000 Rate

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.


Follow on/Variable Mortgage Rates
up to
50% LTV
Follow on Rate
up to
60% LTV
Follow on Rate
up to
70% LTV
Follow on Rate
up to
80% LTV
Follow on Rate
up to
90% LTV
Follow on Rate
Avant Mortgage2.45%2.45%2.45%2.70%2.70%
ICS Mortgages3.70%3.70%3.70%3.95%3.95%
Finance Ireland4.75%4.95%4.95%4.95%5.15%
Haven Mortgages2.75%2.95%2.95%2.95%3.15%
AIB Mortgage2.75%2.95%2.95%2.95%3.15%
KBC3.00%3.00%3.05%3.05%3.3%
Ulster Bank3.50%3.50%3.70%3.70%3.90%
EBS Mortgage3.30%3.50%3.5%3.50%3.70%
Permanent TSB3.70%3.70%3.70%3.70%3.90%
Bank of Ireland3.90%3.90%4.20%4.20%4.50%
Probable follow on variable rates post fixed period based on current variable rates by provider

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 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.

Their 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 a Green Mortgage with Haven. 

If you are self building you can’t get a BER rating until the completion of your build, unlike other lenders Haven 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.

Average Rate (APRC) 3 Yr4 Yr5 Yr7 Yr
Avant Money Mortgages2.44%2.54%2.60%2.81%
ICS Mortgages3.85%3.93%
Finance Ireland Mortgages5.11%5.27%
Haven Mortgages3.20%3.0%3.20%3.20%
AIB Mortgage2.82%2.77%2.75%3.13%
EBS Mortgages3.70%3.40%3.60%
Permanent TSB Mortgages3.58%3.49%3.45%3.77%
Bank of Ireland Mortgages3.40%3.00%3.00%2.90%
* LTV < 50%, includes Mortgage value >€250,000 or Building Energy Rating B3+

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 2022

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% ICS and 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 2022

So an AIB mortgage can lead the market on the combination of introductory rate and cash back, but they cost a lot more than some providers in the long run.

With switching becoming easier and savings increasing, switching your mortgage every 3 or 4 years now makes a lot of sense. You not only can claim multiple cash back offers you can also lock into low fixed rates each time you move.

RankMortgage ProductAPRCApprovalSpeedRate RiskRating
1Avant Money Mortgage 15 Yr Fixed3.48%MediumGoodLow4.75
2Avant Money Mortgage 7 Yr Fixed2.81%MediumGoodMedium4.50
3Avant Money Mortgage 3 Yr Fixed2.44%MediumGoodHigh4.00
APRC is the Average Rate paid across the whole mortgage term @ LTV of <50%

If you know you’re are going to switch at the end of your fixed period then an AIB Mortgage is a good option, particularly if you have an LTV below 60%. 

Their 4 year fixed Green Mortgage offers great value in the 4 year term.

However, if you are looking to stay with your provider for longer than the fixed period there are better options available offering introductory rates just as good, but with lower follow on rates.

Alternatives – AIB Mortgage Ireland 2022

Average Rate (APRC) 3 Yr4 Yr5 Yr7 Yr
Avant Money Mortgages2.44%2.54%2.60%2.81%
ICS Mortgages3.85%3.93%
Finance Ireland Mortgages5.11%5.27%
Haven Mortgages3.20%3.0%3.20%3.20%
AIB Mortgage2.82%2.77%2.75%3.13%
EBS Mortgages3.70%3.40%3.60%
Permanent TSB Mortgages3.58%3.49%3.45%3.77%
Bank of Ireland Mortgages3.40%3.00%3.00%2.90%
* LTV < 50%, includes Mortgage value >€250,000 or Building Energy Rating B3+
Avant Logo
  • Rates from 2.44% APRC
  • Fixed for 3-30 Years
  • Tighter approval policy
ICS Logo
  • Rates from 3.83% APRC
  • Fixed for 3-5 Years
  • Flexible approval policy
Finance Ireland Logo
  • Rates from 4.45% APRC
  • Fixed for 3-25 Years
  • Flexible approval policy

In a Nutshell – AIB Mortgage Ireland 2022

The non bank lenders Avant Money, ICS Mortgages and Finance Ireland 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.

If you are thinking of becoming a serial switcher AIB should also be on the roster, by signing up for the 4 year fixed you can get a great rate and cash back into your pocket then switch to one of the non bank lenders when your 4 years are up.

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

Next Steps – AIB Mortgage Ireland 2022

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 longer term fixed rates, you can check out our deep dive best fixed rate mortgage piece here or how fixed versus variable compares 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.

Next Steps – AIB Mortgage Ireland 2022

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.

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