THE broker-focused division of AIB has launched a new green mortgage with one of the lowest rates in the market.

Haven’s new 2.15pc four-year fixed rate is available to new and existing customers.

The rate will apply irrespective of the loan-to-value ratio.

Normally, buyers need a large deposit, with existing homeowners needing a lot of equity in their home, to qualify for a low rate.

All new builds are expected to qualify for the mortgage which is based on Building Energy Rating (BER), while existing homeowners who upgrade their homes may also qualify.

The lender said the new rate represents a monthly saving of €155 on a 25-year mortgage of €300,000. Over a year this works out at a saving of €1,800.

Customers who switch their mortgage to Haven and avail of its ‘Green Four Year Fixed Rate’ mortgage will receive €2,000 towards legal costs.

The rate is available to new and existing Haven residential mortgage customers whose property has a Building Energy Rating (BER) of between A1 and B3 and a valid BER cert that is not more than 10 years old.

Existing customers can qualify by having four years or more remaining on their mortgage.

Haven is AIB’s wholly owned subsidiary, focused exclusively on mortgage distribution through brokers.

Haven managing director Kieran Tansey said the new rate offers customers big savings on their monthly mortgage repayments compared with variable rates.

“We’re making this new Green mortgage rate available to new and existing customers who will see the benefit of their green homes in their wallets.”

Karl Deeter of brokerage Yes.ie said: “The great thing about this offering is that it’s open to all loan amounts versus the value of the home which makes it accessible to all first time buyers.”

He said that usually good rates are only available where the borrower has more equity in the home.

Those qualifying for the green mortgage will need the energy rating of their home to be above B3, which will not be an issue with new builds, he said.

The green mortgage is only available to customers who apply through their Haven-appointed mortgage intermediary.

Customers will be able to avail of the new rate from next Thursday.

It comes after AIB Group’s chief executive Colin Hunt told an Oireachtas Committee this week he sees the difference between Irish and EU mortgage rates narrowing over time.

He said expects regulatory rules on the amount of capital banks here are expected to hold when they issue a mortgage to be eased in time.

That will have a “compressing impact on the spread between the average European mortgage rate and the average Irish mortgage rate”, he said.