AIB mortgage interest rates

Millem

We have been approved with AIB 92% for 35 years. I am trying (without any luck) to get their interest rates as we need to decide what one to go for! I would really appreciate if someone could point me in the right direction.
Also do they still offer 3 months deferred start? Thanks

on_my_oe

It doesn't specifically say 35 years, but ima sure the rates are still applicable

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

Millem

on_my_oe wrote: »

It doesn't specifically say 35 years, but ima sure the rates are still applicable

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

Thanks a million. There is less than €90 difference per month to fix for one year or five years. Could anyone offer advice?

the groutch

fixed rates are always geared in favour of the banks.
the fact that their fixed rates (even 5 year) are lower than their current variable rates speaks volumes about the direction they're expecting their variable rates to go in the short/medium term

ted1

Millem wrote: »

We have been approved with AIB 92% for 35 years. I am trying (without any luck) to get their interest rates as we need to decide what one to go for! I would really appreciate if someone could point me in the right direction.
Also do they still offer 3 months deferred start? Thanks

I find it hard that they approve you without giving you the rates, where you actually approved or was it approval in principle? Or just an online thing?

Millem

ted1 wrote: »

I find it hard that they approve you without giving you the rates, where you actually approved or was it approval in principle? Or just an online thing?

No it was full approval, we initially asked for a lower amount but then asked for an increase. We are sale agreed now and they asked us what rate we wanted to go with.

Trend Setter in Training

Millem wrote: »

No it was full approval, we initially asked for a lower amount but then asked for an increase. We are sale agreed now and they asked us what rate we wanted to go with.

Yes that was the same for us, once we got full approval they asked what rate we wanted. We went with the one year fixed rate for new customers at 3.5% (http://personal.aib.ie/our-products/mortgages/mortgage-interest-rates) so we can budget for the first year and take it from there then.

As said above the fact the the fixed rates are lower suggest the bank expects variable rates to fall but with the current variable rate at 4.25% for over 80% LTV couldn't see it falling that much at all.

Millem

Trend Setter in Training wrote: »

Yes that was the same for us, once we got full approval they asked what rate we wanted. We went with the one year fixed rate for new customers at 3.5% (http://personal.aib.ie/our-products/mortgages/mortgage-interest-rates) so we can budget for the first year and take it from there then.

As said above the fact the the fixed rates are lower suggest the bank expects variable rates to fall but with the current variable rate at 4.25% for over 80% LTV couldn't see it falling that much at all.

That's great do you know if they still offer the 3 months deferred start?

ted1

Millem wrote: »

That's great do you know if they still offer the 3 months deferred start?

Be careful with that. The interest starts day one and it cists you to take a 3 month break

bmwguy

I did that 3 month deferred start my mortgage interest was about 600 a month so all it did was add nearly 2 grand to my loan amount. In hindsight I would not do it again

Millem

bmwguy wrote: »

I did that 3 month deferred start my mortgage interest was about 600 a month so all it did was add nearly 2 grand to my loan amount. In hindsight I would not do it again

I will look into that so

Glenbhoy

the groutch wrote: »

fixed rates are always geared in favour of the banks.
the fact that their fixed rates (even 5 year) are lower than their current variable rates speaks volumes about the direction they're expecting their variable rates to go in the short/medium term

The rule of thumb is that you shouldn't take fixed rates unless you require the certainty that they give you, the reason being that as the groutch says, banks set rates at margins which they think will give them profits, of course given the track records of some of the finest minds in Irish banking, that's maybe not much of an indicator.
For what it's worth, I'd find that 5 yr rate very tempting.

Millem

Glenbhoy wrote: »

The rule of thumb is that you shouldn't take fixed rates unless you require the certainty that they give you, the reason being that as the groutch says, banks set rates at margins which they think will give them profits, of course given the track records of some of the finest minds in Irish banking, that's maybe not much of an indicator.
For what it's worth, I'd find that 5 yr rate very tempting.

My OH wants to go 5 year fixed but I think it's a long time to fix.

Woodville56

Also mortgage approved with AIB - our LTV is in the 50-80% range so variable rate of interest is 4.05%, while 1 year fixed is 3.50%. Very tempted to fix for 1 year at the 3.5% - would the variable be likely to drop by as much as the difference ( 0.55%) in a year ??
I wouldn't be inclined to fix for longer though as the mortgage rate outlook appears to me to be too unpredictable in the medium/long term

Dr_Kolossus

If it drops 0.55 in 1 year, all that does is puts you even with the 3.5 rate at the time that the fixed = 3.5. You still payed more for the period before that.

What you should be considering is, will it drop by (for example, and assuming no drops at all in the months prior) >1.1 in 6 months time. As this would mean variable would then be better than fixed.

Eldarion

Take the 1 year fixed for sure. 3.5% is a great interest rate to borrow at and you're not tied to it for any considerable period of time. 1 year will go by fast and the fixed rate will allow you to find your feet again after incurring all the up front costs of the sale. Reassess your position after the first year and look at what's on offer then before deciding whether you want to fix for longer or move to variable.

If you plan on overpaying at all then you have to be on a variable rate to avoid penalties. Also note the earlier you overpay the more you save on interest, significantly more.

Avatarr

Question about AIB mortgage, for an average €200,000 mortgage AIB will take in year 1 €8,369 in interest payment alone and year 2 €7,679 and so on. So actual €200,000 only falls by €4000 in Year 1 even though €13,000 mortgage repayments paid.

Is it normal for banks to charge interest in this fashion?

Gumbo

Avatarr wrote: »

Question about AIB mortgage, for an average €200,000 mortgage AIB will take in year 1 €8,369 in interest payment alone and year 2 €7,679 and so on. So actual €200,000 only falls by €4000 in Year 1 even though €13,000 mortgage repayments paid.

Is it normal for banks to charge interest in this fashion?

They have to make a profit on you. They are not the Samaritans.

loyatemu

interest is always front-loaded in mortgages, in the last few years you will be mostly paying down the capital. Put your figures in here and it will show you a graph of payments.