Haven joins KBC, Bank of Ireland and AIB in offering mortgage customers the choice of a fixed rate over 10 years.
Over the past few years fixed rates have become increasingly common in Ireland, so much so that over 70% of new mortgages here are now fixed. However this compares to over 80% in the Eurozone. And unlike in Europe, where fixed rates of up to 20 years or more are common, few banks in Ireland have offered fixed rates of more than five years up until now.
However that’s slowly beginning to change.
Permanent TSB launched a new seven-year fixed rate a few months back and today Haven has announced that it will start offering mortgage customers the choice of a fixed rate over seven and 10 years too.
This is undoubtedly good news for mortgage customers in Ireland who are looking for the peace of mind and certainty that longer-term fixed rates bring.
And if you’re looking for more information on the pros and cons of a fixed rate versus a variable rate, see here.
What fixed rates is Haven offering?
As well as its new seven-year and 10-year fixed rate, Haven also offers fixed rates over one, two, three, four and five years.
Here’s how all its rates stack up.
| Bank | Term | Rate |
| Haven | 1-year fixed | 3.15% |
| Haven | 2-year fixed | 3.15% |
| Haven | 3-year fixed | 2.85% |
| Haven | 4-year fixed | 2.85% |
| Haven | 5-year fixed | 2.85% |
| Haven | 7-year fixed | 3.15% |
| Haven | 10-year fixed | 3.30% |
Who is Haven?
Haven is a wholly owned subsidiary of AIB that focuses purely on mortgage lending through the intermediary market i.e. broker channel.
Who are the new rates available to?
The new rates come into effect from today and are available to both new and existing customers and for first-time buyers, movers and switchers.
Tom Kinsella, Managing Director of AIB Homes commented: “Haven is offering value and choice by introducing highly competitive fixed-rate pricing, to complement our lowest variable offering in the market. At a time when some customers have told us they require certainty, we’re evolving our mortgage pricing proposition to provide them with medium and long term propositions that give them security.”
The future for fixed rates
As mentioned previously, fixed rates are the norm in most other European countries so it's unsurprising that we're catching up with the rest of Europe.
Where we still lag well behind is the term that's available. A fixed term of 10 years may seem like a long time, but in many European countries it's possible to choose a fixed rate for the entire length of your mortgage!
Due to the structure and nature of the Irish banking system it's unlikely we'll ever see fixed rates of this length in Ireland. But a fixed rate of 12 or even 15 years is possible and could be introduced within the next few years, especially if a new lender enters the market.
Before you decide, always compare
Although the new rates from Haven might seem tempting, make sure you compare all rates across all lenders on bonkers.ie before you commit with our free, easy-to-use mortgage calculator.
