AIB, EBS cut interest rates!

Ranleth

New and existing borrowers with AIB, EBS and Haven gain from the rate cuts.

The lenders, which are all part of the AIB Group, have reduced the variable rate by 0.25pc.

It is the first time variable rates have been cut in years, despite the European Central Bank rate being cut twice this year. The ECB rate is now at a record low of just 0.15pc

personal.aib.ie/our-products/mortgages/mortgage-interest-rates

Lowest rate matches KBC (except for their discounted Current Account Mortgage Rate)

Eldarion

Wow they're really pushing for fixed here. Fixing for 5 years at 3.9% seems like a great deal but makes me wonder what they're anticipating down the line that they're offering it...

toby2111

Thought I read that 2 year fixed with EBS is 3.8% which seems very tempting. But, like the above poster, I wonder why the banks are doing this? Is it because of that court case earlier this month? Surely, they'd hike them if they felt they were gonna lose that case to help pay customers!

Moonbeam

I am shocked,usually the hike it to celebrate ecb cuts.

d1980

Anyone know if this impacts variable buy to lets?

Eldarion

The AIB rates. No change for BTL rates.

d1980

Eldarion wrote: »

The AIB rates. No change for BTL rates.

thanks for this.any idea on ebs btl? Don't see anything on their website
tks

Senna

I'm very tempted by the 5 year fixed at 3.9%, the certainty would be nice and under 4% is certainly a level I can live with for the foreseeable future.
Anyone think there is huge rate cuts coming in the future? ECB is at rock bottom, is there anything on the horizon that could drop the cost of lending a large amount?

celticbhoy27

Senna wrote: »

I'm very tempted by the 5 year fixed at 3.9%, the certainty would be nice and under 4% is certainly a level I can live with for the foreseeable future.
Anyone think there is huge rate cuts coming in the future? ECB is at rock bottom, is there anything on the horizon that could drop the cost of lending a large amount?

3.9% is a savage temptation and looks like fixing at that rate is a no brainer. The cynic in me won't be taking up that option though. When was the last time a fixed mortgage was less than the variable? It doesn't make sense. I'll gamble on the variable dropping further

ted1

Eldarion wrote: »

Wow they're really pushing for fixed here. Fixing for 5 years at 3.9% seems like a great deal but makes me wonder what they're anticipating down the line that they're offering it...

If the ECB rate increases the variable rates should drop. I think I'll fix for 3 years.

snubbleste

Sure you can get a 92% mortgage from the State for 3.76% apr
As long as you are a FTB on average income and the property is less than €285k http://www.homechoiceloan.ie/

micks_address

celticbhoy27 wrote: »

3.9% is a savage temptation and looks like fixing at that rate is a no brainer. The cynic in me won't be taking up that option though. When was the last time a fixed mortgage was less than the variable? It doesn't make sense. I'll gamble on the variable dropping further

if im on standard variable with aib now and went fixed at 3.9 what would be saving on every 100k per month?

micks_address

micks_address wrote: »

if im on standard variable with aib now and went fixed at 3.9 what would be saving on every 100k per month?

3 year fixed at 3.8 looks very tempting.. ill phone them tomorrow!

celticbhoy27

micks_address wrote: »

if im on standard variable with aib now and went fixed at 3.9 what would be saving on every 100k per month?

The .25% drop that is coming in will save you approx 14 a month per 100k
If you fix it'l give you another 14ish a month off

jon1981

Awfully tempting to go fixed at 3.8% , could save 1800 a year! :eek:

Though the cynic in me is saying "Don't; do it ,it is a trick, they are scheming to get you!"

Ranleth

The best variable rate available is with KBC, if you have a current account with them they give a 0.2% discount.

Rate APR
LTV Variable <60% 3.65% 3.71%
LTV Variable >60% and up to 80% 3.79% 3.86%
LTV Variable >80% and up to 90% 4.27% 4.35%

I'm in the process of moving from an AIB variable but their new fixed rates look very tempting (too tempting).

Ranleth

The best variable rate available is with KBC, if you have a current account with them they give a 0.2% discount.

Rate APR
LTV Variable <60% 3.65% 3.71%
LTV Variable >60% and up to 80% 3.79% 3.86%
LTV Variable >80% and up to 90% 4.27% 4.35%


I'm in the process of moving from an AIB variable but their new fixed rates look very tempting (too tempting).

spockety

Senna wrote: »

I'm very tempted by the 5 year fixed at 3.9%, the certainty would be nice and under 4% is certainly a level I can live with for the foreseeable future.
Anyone think there is huge rate cuts coming in the future? ECB is at rock bottom, is there anything on the horizon that could drop the cost of lending a large amount?

There is a good reason why the fixed is less than the variable... it tells you a lot about where they think the variable is going to go.

With ECB rates at rock bottom, and the Irish market picking up again, perhaps AIB believe that there will be a new entrant or two into the market which are unencumbered by Irish bank bailout crapolegacy and can offer the kind of variable rates currently available elsewhere in Europe.

If this were to happen it could be a bloodbath. They could make AIB's variable rates look positively expensive.

bmm

Considering these Bankers have not passed on ECB rate cuts for the last 7 years!! it's too little too late!!!!!! F*cking Banker B*astards!!!!!!!

Mongfinder General

Ranleth wrote: »

The best variable rate available is with KBC, if you have a current account with them they give a 0.2% discount.

Rate APR
LTV Variable <60% 3.65% 3.71%
LTV Variable >60% and up to 80% 3.79% 3.86%
LTV Variable >80% and up to 90% 4.27% 4.35%

I'm in the process of moving from an AIB variable but their new fixed rates look very tempting (too tempting).

Agreed, there must be a long term low finance on the hook that we don't know about

Mongfinder General

spockety wrote: »

There is a good reason why the fixed is less than the variable... it tells you a lot about where they think the variable is going to go.

With ECB rates at rock bottom, and the Irish market picking up again, perhaps AIB believe that there will be a new entrant or two into the market which are unencumbered by Irish bank bailout crapolegacy and can offer the kind of variable rates currently available elsewhere in Europe.

If this were to happen it could be a bloodbath. They could make AIB's variable rates look positively expensive.

But why bother when a good chunk of your book are in negative equity and can't get mortgage approval elsewhere. You could charge a rate of 10% if you wanted to.

jon1981

Mongfinder General wrote: »

But why bother when a good chunk of your book are in negative equity and can't get mortgage approval elsewhere. You could charge a rate of 10% if you wanted to.

There is likely now a significant chunk out of negative equity... no? I'm sure they don't want to lose the performing mortgages

Zamboni

So if an ftber has a close and drawdown scheduled for November at a five year fixed they are screwed on a 5.2%?
Ouch

Soz I was looking at the BTL effective date. Never mind...

ffactj

Irish banks are about to get chewed out for taking the piss on interest rates.
This is a pre-emptive move so they can save a little face.
Others to follow.

Story about it on askaboutmoney.

Mongfinder General

jon1981 wrote: »

There is likely now a significant chunk out of negative equity... no? I'm sure they don't want to lose the performing mortgages

There's still a long way back, so no, there isn't much chance of losing those existing mortgages when deposit of 20% is needed and a loan of 3 times your salary is all you can get.

jon1981

Is that a done deal by the central bank yet? Also new mortgages are nothing to do with your original statement regarding existing mortgage holders and not being able to move.

The new rules might slow the price hikes but I don't think it will slow down lending. A lot of New variables now.

Mongfinder General

jon1981 wrote: »

Is that a done deal by the central bank yet? Also new mortgages are nothing to do with your original statement regarding existing mortgage holders and not being able to move.

The new rules might slow the price hikes but I don't think it will slow down lending. A lot of New variables now.

Done deal until politicians interfere.

kennyb3

Zamboni wrote: »

So if an ftber has a close and drawdown scheduled for November at a five year fixed they are screwed on a 5.2%?
Ouch

Soz I was looking at the BTL effective date. Never mind...

They can just switch to variable before closing then contact bank re fixing after.

Not likely to affect amount offered given repayment capacity for 5.2% fixed proven and higher than current variable.

Woshy

Ok, stupid question time, sorry! how can I see the interest rate I'm paying and how a drop will affect our payments? We just drew down a mortgage 2 weeks ago with ebs. Our first payment isn't until next week. We're already on a slightly lower variable rate because we have between 50-80% LTV ratio. Presumably a drop in the variable rate will still effect us?

I've just realised I've no access online yet to our mortgage account and no idea how regular the statements are. Any other ebs customers in the know? Just before I contact the bank and go through that hassle (I've already loads to do with organising the house move!)

kennyb3

Woshy wrote: »

Ok, stupid question time, sorry! how can I see the interest rate I'm paying and how a drop will affect our payments? We just drew down a mortgage 2 weeks ago with ebs. Our first payment isn't until next week. We're already on a slightly lower variable rate because we have between 50-80% LTV ratio. Presumably a drop in the variable rate will still effect us?

I've just realised I've no access online yet to our mortgage account and no idea how regular the statements are. Any other ebs customers in the know? Just before I contact the bank and go through that hassle (I've already loads to do with organising the house move!)

Find it mind boggling you signed 2 weeks ago yet can't remember the rate you signed up for?

Maybe look at the letter of offer you signed?

Anyway you can use this to work it out if you know all the other details - term of mortgage how much you borrowed and how much you are due to pay. Just play around with interest rate.

Woshy

kennyb3 wrote: »

Find it mind boggling you signed 2 weeks ago yet can't remember the rate you signed up for?

Maybe look at the letter of offer you signed?

Anyway you can use this to work it out if you know all the other details - term of mortgage how much you borrowed and how much you are due to pay. Just play around with interest rate.

Obviously I know what rate we're on now and what we signed up for! Ihave a loan agreement with it on it, even if I had suddenly become brain damaged and didn't remember.

What I wanted to know is if our rate will change with this recent announcement? As we already pay lower interest rates due to our LTV ratio I wasn't sure or sure where to easily access that information without asking the bank directly. Do you get updated info from the bank if your rate changes?