AIB and its subsidiaries introduce 12-month Approval in Principle

Navigating the housing market can be fairly daunting these days, but AIB is making things a little easier for prospective homebuyers. 

The bank and its subsidiaries have introduced a new 12-month Approval in Principle (AIP), a significant improvement from the traditional six-month timeframe.

So whether you’re a first-time buyer, looking to move up the property ladder, or seeking to switch to a lower rate, this initiative will help to simplify the journey a bit.  

12-month Approval in Principle 

AIB and its subsidiaries EBS and Haven are increasing the length of time that an Approval in Principle (AIP) remains valid. 

An AIP is like a stepping stone towards full mortgage approval. It’s a letter from a lender showing the amount they could lend you, based on some initial checks. While it’s not a full loan offer, it’s a good indication of what a lender is willing to lend you and more importantly it’ll allow you to view properties and place bids with estate agents as you’ll have a good idea of what you can borrow. You can also use your AIP to prove to an estate agent that you're a serious buyer - indeed many estate agents nowadays won't even let you view a property unless you have an AIP in place.

Until now, Bank of Ireland was the only other lender that allowed AIPs to last up to 12 months. 

As the housing market seems to stumble from bad to worse, there remains a chronic shortage of properties to buy so it’s getting tougher and tougher for prospective first-time buyers to find a home within a few months. As such, this change from AIB will place a bit less pressure on buyers.

The change is effective from 24th August 2024. This means that any new AIPs approved on or after this date by AIB, EBS or Haven will receive a 12-month AIP. 

Any mortgage applications that were approved prior to 24th August 2024 will continue to have a six-month AIP.

Cashback offers

In other good news, EBS and Haven are extending their popular cashback offers until 31st December 2025. These offers were due to expire at the end of this year.

EBS offers up to 3% cashback to first-time buyers, movers and switchers on most of its fixed rates. It also has a separate €3,000 cashback deal for switchers who choose its green four-year fixed rate. 

Haven offers first-time buyers, movers and switchers €5,000 cashback on select fixed rates if they take out a mortgage of €250,000 or more (its green four-year fixed rate, one of the lowest rates on the market, is excluded from this offer).

You can compare all mortgage cashback deals from all lenders here.

Get your mortgage with bonkers.ie

If you’re hoping to get your foot on the property ladder over the coming year, or are looking to save money by switching to a cheaper rate with a different lender, bonkers.ie can help. 

Use our free mortgage calculator to easily find the best interest rates and cashback incentives from all of Ireland’s mortgage providers.

And when it’s time to apply for your mortgage, you can submit an enquiry through our free mortgage broker service and one of our experienced financial advisors will call you back to get your application started. We'll guide you through your entire mortgage journey from application to drawdown and can help you with getting mortgage protection and home insurance too.

And the best news is that our service is entirely free and fully digital from start to finish, meaning everything can be done online from the comfort of your home!