Mortgage Interest Rate Options

Fixed Rate

With a Fixed Rate, the rate and repayment remains the same for the period chosen (typically over 1 - 10 years), even when market rates fluctuate. Once the term chosen for the Fixed Rate has ended, you can opt for another Fixed Rate or choose an appropriate Variable Rate.

While Fixed Rates offer certainty of repayments and protect you from interest rate increases they also mean you will not benefit from any rate cuts that occur during the fixed period chosen. Neither will you have the flexibility to break out of the Fixed Rate without potentially incurring a breakage cost. For further information please click Home Mortgage Regulatory Information.

If you avail of a Fixed rate option, at the end of your fixed interest rate term, you may choose between:

1. another fixed interest rate for a further fixed interest rate term if we offer it at the time; or
2. an appropriate variable interest rate for the Mortgage Loan if we offer it at the time.

Private Dwelling Home (PDH) Fixed Interest Rates based on Loan to Value (LTV)

If your Mortgage Loan is for your PDH and is on an LTV fixed interest rate, and at the end of any fixed interest rate term you do not choose one of the options described in (a) or (b) above then:

1. we will apply one of our LTV variable interest rates to the Mortgage Loan, based on the LTV fixed interest rate band that applied to the Mortgage Loan during the fixed interest rate term (or, because LTV interest rate bands may change, the closest available equivalent); or
2. if we don’t offer LTV variable interest rates at that time but we do offer a PDH standard variable interest rate we will apply such PDH standard variable interest rate to the Mortgage Loan; or
3. if we offer neither LTV variable interest rates nor a PDH standard variable interest rate at that time, another variable interest rate determined by us that we offer at that time (as a default interest rate for PDH borrowers) will be applied to the Mortgage Loan.

PDH Fixed Interest Rates not based on LTV

If your Mortgage Loan is for your PDH and is on a fixed interest rate other than an LTV fixed interest rate, and at the end of any fixed interest rate term you do not choose one of the options described in (a) or (b) above, then:

1. if we offer a PDH standard variable interest rate at that time, we will apply it to the Mortgage Loan; or
2. if we do not offer a PDH standard variable interest rate at that time, another variable interest rate determined by us that we offer at that time (as a default interest rate for PDH borrowers) will be applied to the Mortgage Loan.

Buy to Let (BTL) Fixed Interest Rates

If your Mortgage Loan is for a BTL property, and at the end of any fixed interest rate term you do not choose one of the options described in (a) or (b) above, then:

1.  if we offer a BTL standard variable interest rate at that time we will apply it to the Mortgage Loan; or
2. if we do not offer a BTL standard variable interest rate at that time, another variable interest rate determined by us that we offer at that time (as a default interest rate for BTL borrowers) will be applied to the Mortgage Loan.

Note: If you chose to convert a loan from a Tracker rate to a Fixed interest rate, at the end of the Fixed rate period, you will only have the option of moving to a Variable rate or choosing a new Fixed rate term. The original Tracker rate will not be available.

View our Mortgage Interest Rates

Green 5 Year Fixed Rate

If you are buying or building a high energy rated home, we are offering a new, lower rate of interest.

Our new Green 5 Year Fixed Rate is available to you if:

• You are a new customer building or buying your home (Private Dwelling Home mortgage) with a Building Energy Rating (BER) rating between A1 and B3.
• You already have a mortgage loan with us, your home has a BER rating between A1 and B3 and you’ve more than five years left on the loan. 
• You already have a mortgage loan with us and you want to top it up to get your home to a BER rating between A1 and B3.

More information on Green 5 Year Fixed mortgage interest rate.

Higher Value 4 Year Fixed Rate

Our Higher Value 4 Year Fixed Rate is available to you if:

• You are borrowing at least €250,000 to buy or build the home you will live in.
• You are switching your mortgage to AIB and are borrowing at least €250,000.
• You already have a mortgage with us and the balance is €250,000 or more and at least 4 years remain on your loan.

Things to note:The Higher Value 4 year fixed LTV interest rate is available to new AIB PDH mortgage customers, including Switchers, borrowing at least €250,000 over a term of 4 years or more. Switchers availing of the Higher Value rate can also benefit from the €3,000 Switcher cash offer.

Existing AIB PDH customers can avail of the Rate if the remaining balance on the mortgage is at least €250,000 and a term of 4 years or more remains on the mortgage loan when actioning your request. Those who have more than one mortgage loan on the same property can avail of the Rate if the combined balance of their loans are at least €250,000. The rate can only be applied to account(s) with a term of 4 years or more remaining. If your mortgage meets the qualifying criteria and you wish to avail of this rate you must complete the Mortgage Amendment form.

Existing AIB PDH customers topping up their mortgage can combine the amount of the new borrowings with the balance of their existing mortgage loan to meet the €250,000 threshold. Once the total loan balances of your combined mortgage loans meet the €250,000 threshold on the date of issuing the most recent top-up letter of offer, the Higher Value Rate will be applied to the Top Up Mortgage Loan. More information on Higher Value 4 Year Fixed mortgage rate.

Standard Variable Rate

With our Standard Variable rate, your monthly repayments may rise and fall over the life of your mortgage. Our Standard Variable rate gives you the flexibility to make early repayments or lump sum repayments and so reduce the overall cost of your mortgage. There is also the option of changing to a Fixed rate.

For Owner Occupiers the Standard Variable rate is only available upon maturity of a Fixed Rate. However all Buy to Let customers can avail of our BTL Standard Variable rate.

LTV (Loan to Value) Variable Rate

Our suite of LTV Variable rate bands are available for all new Owner Occupier Mortgages.

Loan to Value, what does this mean?

Loan to Value or LTV is the amount that you are borrowing relative to the value of the property you are buying. To calculate your LTV, simply divide your mortgage amount by the value of the property and multiply by 100. For example, if you are buying a property valued at €400,000 and you are borrowing €200,000, your LTV is 50%.

An LTV Variable rate is a type of variable interest rate. We have a range of LTV Variable rates bands you can choose from, depending on the amount you are borrowing relative to the value of your home. With an LTV Variable rate, your monthly repayments may rise and fall over the life of your mortgage.

An LTV Variable rate offers you the flexibility to make early repayments or lump sum repayments during the life time of your mortgage. The advantage of making early or lump sum repayments means that the overall cost of your mortgage reduces. There is also the option of changing to a Fixed rate at any time.

View our Mortgage Interest Rates

More information on the AIB Variable Rate Policy Statement

Important Information for Existing Customers

Change the Loan to Value (LTV) on my current Mortgage

You may have the option to move to a lower LTV band as the loan to value on your current PDH mortgage reduces.

Before you can move to a lower LTV band, you may need to provide us with an updated full valuation report. There are a couple of points you should be aware of:

• you are responsible for arranging the valuation report and for the cost.
• the valuation report must be dated within the past 6 months.
• the valuation report must be completed by an approved valuer from the AIB Residential Mortgage Valuer's Panel.

Prior to ordering a valuation report we recommend that you check the Property Price Register (www.propertypriceregister.ie) and or DAFT to help you understand what similar houses in your area have been sold for recently. This will help you estimate your current Loan to Value position.

To calculate your Loan to Value: Divide your mortgage loan balance(s) by the value of your property and multiply by 100 e.g. €280,000.00 ÷ €350,000.00 x 100 = 80% LTV

You won’t need to provide a valuation report if any of the below scenarios are relevant to you:

1. If you choose an LTV rate for the first time on your mortgage account and the LTV rate band is the same as the original loan to value ratio of your mortgage account at the time of drawdown; or
2. If you choose the same LTV band that was previously applied to your mortgage account; or
3. If you choose a >80% LTV band

To request movement to a lower LTV band you will need to complete the Mortgage Amendment Form, ensuring it is signed by all parties to the mortgage. Your request and valuation report, where required, should be sent to us at AIB Home Mortgage Operations, Accounts Section, 1 Adelaide Road, Dublin 2.

Split Rate - Available for New Mortgage Customers Only

A 'Split Rate' gives you the option of dividing your borrowings between Fixed and Variable rates. This enables you to benefit from the advantages of each rate in whatever proportions you choose.

View our Mortgage Interest Rates