AIB is introducing a new range of Loan-to-Value (LTV) fixed rate mortgages, which will see the bank offer a range of fixed price points for customers with rates as low as 2.25% as competition begins to heat up in the mortgage market.

The introduction of these new LTV fixed rates follows on from AIB's fixed rate reduction earlier this year. 

The new AIB mortgage rates come as Avant Money – formerly Avantcard – enters the mortgage market today.

AIB said that customers on its current variable rate of 2.75% would save €41 on their monthly repayments if they switched to a green five year fixed rate of 2.25%. 

The bank said the calculation is based on a 25 year mortgage with a remaining balance of €160,000, a property valued at €350,000 and an LTV of less than 50%. 

Meanwhile, customers currently on a standard variable rate of 3.15% would save €89 on their monthly repayments if they switched to a 3 year fixed rate of 2.45%. 

This is based on a 25 year mortgage with a remaining balance of €250,000, a property valued at €350,000 and a LTV of between 50%-80%, AIB said. 

"AIB is committed to unlocking value for both new and existing customers.  Our new LTV fixed rate bands give customers the opportunity to reduce their mortgage repayments as their capital balances reduce," AIB's CEO Colin Hunt said. 



"We have also introduced new LTV bands for our Green Mortgage, further supporting Ireland's transition to a low-carbon economy," he added.