AIB Fixed interest rate rise - Does it affect me?

highdef · 15-03-2011 2:03pm #1

I just saw on the news that AIB is upping its fixed interest rates today. I have my mortgage fixed now and I'm presuming that my current rate will stay the same. However, the news report seemed to suggest that it will be affecting all AIB fixed interest rate customers rather than those who are seeking a fixed interest rate. Can anyone clarify as to who will be affected?

If my fixed interest rate is going to be increased, I really can't see the reason to have a fixed rate mortgage in the first place. I'm really hoping I've misunderstood the whole thing!

Thanks in advance

SteoL · 15-03-2011 2:25pm

For new customers only. And I should hope so as otherwise it defeats the purpose of a fixed rate mortgage/

The bank says that rates for new residential owner occupier and buy-to-let mortgages will rise from close of business today

http://www.rte.ie/news/2011/0315/mortgage-business.html

highdef · 15-03-2011 3:33pm

Ah grand. I thought that was the case alright. The news report seemed to be a little bit misleading or maybe I just comprehend it correctly. And yes I agree that raising fixed rate mortgage rates for existing mortgage holders would be completely non-sensical!

When my fixed rate term ends on 2 and a bit years, I get the feeling I'll be facing a massive increase in interest rates for my mortgage :mad:

coylemj · 15-03-2011 5:25pm

highdef wrote: »

When my fixed rate term ends on 2 and a bit years, I get the feeling I'll be facing a massive increase in interest rates for my mortgage :mad:

You can bet on it, that is if they are offering fixed rate mortgages at all by then.

highdef · 15-03-2011 5:42pm

Well I'll make the most of it for the next two years so

Officer Giggles · 15-03-2011 5:48pm

i currently have a variable mortgage with aib if i want to fix it will i have to pay the new rates or the old rates

highdef · 15-03-2011 5:50pm

New rates came in at close of business today so I'm afraid you'll be paying about 1% more if you want to fix. That's not 1% more than what you currently pay....that's 1% more than the fixed rate before close of business today

Officer Giggles · 15-03-2011 5:52pm

that rte report states that it is for new mortgages, i am a current mortgage holder so does that make a difference

dotsman · 15-03-2011 7:24pm

Officer Giggles wrote: »

that rte report states that it is for new mortgages, i am a current mortgage holder so does that make a difference

It's for new "fixes". ie, anybody fixing their rate from tomorrow morning, regardless of whether they are an existing mortgage holder or not.

Officer Giggles · 15-03-2011 7:49pm

Ah right thanks for clearing that up

AIB Fixed interest rate rise - Does it affect me?

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