AIB rate reduction

carq

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https://www.independent.ie/business/personal-finance/property-mortgages/bank-shakes-up-mortgage-market-with-fixedrate-cut-37996275.html[/HTML]


Reducing their fixed rates by .45 % for new and existing customers.
Great news!

antix80

That's good news. I took out a home renovation mortgage with AIB for convenience as I bank with them and haven't had any problems with them over the years. I was disappointed with the fixed rate so I stuck with variable but now I'll be moving to the 5 year fixed.

charlietheminxx

I am supposed to be signing my mortgage offer from AIB with my solicitor tomorrow (along with my house contracts). I phoned AIB this morning to see what the story is and if they need to reissue my documentation with the new rates on it and they basically didn't know. Waiting for a call back now.

Imagine I had signed with my solicitor yesterday? I'd be gutted.

iluvfatfrogs

Very interesting move from AIB... I moved from AIB recently.. Are there any figures out there to suggest people have switched from AIB en masse and this is a reaction?

Avatar MIA

charlietheminxx wrote: »

I am supposed to be signing my mortgage offer from AIB with my solicitor tomorrow (along with my house contracts). I phoned AIB this morning to see what the story is and if they need to reissue my documentation with the new rates on it and they basically didn't know. Waiting for a call back now.

Imagine I had signed with my solicitor yesterday? I'd be gutted.

"Reducing their fixed rates by .45 % for new and existing customers."

Avatar MIA

iluvfatfrogs wrote: »

Very interesting move from AIB... I moved from AIB recently.. Are there any figures out there to suggest people have switched from AIB en masse and this is a reaction?

AIB already had the lower rates (AFAIK) so can't imagine there was a mass transfer.

iluvfatfrogs

Avatar MIA wrote: »

"Reducing their fixed rates by .45 % for new and existing customers."

This would suggest the rates will be available to new & current customers - I doubt they will just be able to switch to a new Fixed rate from a previous Fixed rate without cost/penalty.

iluvfatfrogs

Avatar MIA wrote: »

AIB already had the lower rates (AFAIK) so can't imagine there was a mass transfer.

At least 3 or 4 other bank had lower Fixed rates than AIB up until this announcement.

charlietheminxx

iluvfatfrogs wrote: »

This would suggest the rates will be available to new & current customers - I doubt they will just be able to switch to a new Fixed rate from a previous Fixed rate without cost/penalty.

Exactly, if we sign to say we will pay 3.2% then that's what we pay.... so I'm glad we hadn't yet. I assume the reference to existing customers is for those on variable rates.

Avatar MIA

iluvfatfrogs wrote: »

This would suggest the rates will be available to new & current customers - I doubt they will just be able to switch to a new Fixed rate from a previous Fixed rate without cost/penalty.

You're right. I just took the wording from the above post. But from RTE they're saying...

AIB said the revised fixed rates come into effect from April 10 for all new customers and existing variable rate customers who wish to opt for a fixed rate.

antix80

charlietheminxx wrote: »

Imagine I had signed with my solicitor yesterday? I'd be gutted.

Were you going with their fixed rate, and if so, why? It was a terrible 5-year rate relative to competitors on the market.

hanaimai

Avatar MIA wrote: »

You're right. I just took the wording from the above post. But from RTE they're saying...

AIB said the revised fixed rates come into effect from April 10 for all new customers and existing variable rate customers who wish to opt for a fixed rate.

Yes but if you're in a fixed rate already with AIB you will still have to switch to the new rate, which could involve a breakage fee.

carq

any idea of what the breakage would be - i have just paid my first month mortgage there so maybe a bit of leeway may be in order ?

Avatar MIA

hanaimai wrote: »

Yes but if you're in a fixed rate already with AIB you will still have to switch to the new rate, which could involve a breakage fee.

Correct, that's what my updated post quoting RTE says.

Avatar MIA

carq wrote: »

any idea of what the breakage would be - i have just paid my first month mortgage there so maybe a bit of leeway may be in order ?

Almost certainly worth it. There was a thread on here recently and the break fees were minimal.

awec

We had to get our offer with AIB renewed there last week, they issued the offer letter again but we haven't signed it with our solicitor yet.

I'll be getting them to re-issue it again now, and not signing the one they've already sent. That's a significant drop.

voluntary

I'd expect rates to drop even lower while banks slowly offfload bad loans on vulture funds etc.
Banks in other eurozone countires offer below 1.5% rates. Even adding an 'Irish premium' of 25% on top of that, still gives a large space for reductions.

charlietheminxx

antix80 wrote: »

Were you going with their fixed rate, and if so, why? It was a terrible 5-year rate relative to competitors on the market.

Yes we were going with their 3 year fixed rate. We needed certainty on repayments for the first while which is why we went fixed and we went with AIB because they approved us for an exemption on the LTI rules.

charlietheminxx

awec wrote: »

We had to get our offer with AIB renewed there last week, they issued the offer letter again but we haven't signed it with our solicitor yet.

I'll be getting them to re-issue it again now, and not signing the one they've already sent. That's a significant drop.

Will you update here with how you get on? Looks like we are in the same boat.

iluvfatfrogs

carq wrote: »

any idea of what the breakage would be - i have just paid my first month mortgage there so maybe a bit of leeway may be in order ?

As of just before xmas, AIB seemed to be the only bank actually charging non-minimal breakage fees.
I paid €1,000 with 18 months left on a fixed term period.

paintinglasses

AIB dropped their fixed rates about 3 months after we drew down our mortgage. Basically they were charging us €950+ breakage fee, the savings we would have made moving didn't cover this. According to ask about money forum, aib are the only bank that work out their breakage fees a certain way which makes it more expensive.

We are coming to the end of our fixed term now so will be looking into our new plan of action!

Edit: One poster on AAM was quoted a zero break fee which is why I looked into it. But we were not so lucky, even after we pushed them on it.

mossy464

carq wrote: »

any idea of what the breakage would be - i have just paid my first month mortgage there so maybe a bit of leeway may be in order ?

We were in a similar situation back in 2017 when AIB dropped their fixed rates after just a month or two of paying our mortgage. I contacted them and we were able to switch to the new fixed rate without penalty.

Annabella1

So Tracker rate or AIB fixed rate 3.3% for 10 years

(impossible question?)

James Forde

Here's hoping Haven follow suit!

howsshenow

Low rates??
Am looking at moving to Ulster Bank at moment, 2 yr Fixed @ 2.3 percent + expenses paid.
I would call that low.

smurfette2212

Does ‘existing’ mean contract signed, or mortgage drawndown?

We may have missed this by a few days (having opted for their fixed rate for stability purposes!)

Hopefully EBS copy this soon.

Geuze

I hope AAM don't mind me copying this table here.

https://www.askaboutmoney.com/threads/aib-reduces-its-fixed-rates.212451/

Best Buys for LTVs <90%

Avatar MIA

Geuze wrote: »

I hope AAM don't mind me copying this table here.

https://www.askaboutmoney.com/threads/aib-reduces-its-fixed-rates.212451/

Best Buys for LTVs <90%

It's the fixed rate available after initial fixed period that's important.

iluvfatfrogs

Avatar MIA wrote: »

It's the fixed rate available after initial fixed period that's important.

But you'll never take it up? You'll just move (free of penalty) to the cheapest in the market?

Avatar MIA

iluvfatfrogs wrote: »

But you'll never take it up? You'll just move (free of penalty) to the cheapest in the market?

Isn't there a clawback on the cash offer? And it's not free to transfer, you've to go through the cost of conveyance again.

Islander13

Avatar MIA wrote: »

Isn't there a clawback on the cash offer? And it's not free to transfer, you've to go through the cost of conveyance again.

No clawback on cashback offers

iluvfatfrogs

Avatar MIA wrote: »

Isn't there a clawback on the cash offer? And it's not free to transfer, you've to go through the cost of conveyance again.

No clawback if you remain for period of fixed term.

Yes there is the conveyance cost, but I'd imagine that'd be nothing compared the savings in switching to another bank with the cheapest rate at time of switch

tommythecat

I’m with aib on an ltv and was just in the process of switching to a 5 year fixed with KBC but may stay if you can overpay on the aib fixed rates.

Does anyone know if aib allow you to overpay on their fixed rates?

paintinglasses

We were told no. I think some banks allow you to overpay by 10% while on fixed but not AIB while on a fixed rate.

tommythecat

paintinglasses wrote: »

We were told no. I think some banks allow you to overpay by 10% while on fixed but not AIB while on a fixed rate.

Thanks. KBC it is then! They allow 10%

BronsonTB

tommythecat wrote: »

Thanks. KBC it is then! They allow 10%

Be forewarned....
https://www.boards.ie/ttfthread/2057798459

wally79

paintinglasses wrote: »

We were told no. I think some banks allow you to overpay by 10% while on fixed but not AIB while on a fixed rate.

Got advice from AIB this morning that overpayment allowed up to 5 year fixed

charlietheminxx

Just an update for a couple of you who are finishing your mortgage applications at the moment - they confirmed to me that the 2.85% will apply at draw down, regardless of what is on your letter of offer. Of course it's worth getting them to confirm this directly for you, but just to put anyone's mind at ease.

tommythecat

wally79 wrote: »

Got advice from AIB this morning that overpayment allowed up to 5 year fixed

Oh. Do you know how much?

paintinglasses

Well you can technically overpay on a fixed rate but you will incur a penalty. If you can make overpayments on a fixed term without penalty with aib then that's a huge step forward.
Can I ask if you rang them or emailed?

awec

charlietheminxx wrote: »

Just an update for a couple of you who are finishing your mortgage applications at the moment - they confirmed to me that the 2.85% will apply at draw down, regardless of what is on your letter of offer. Of course it's worth getting them to confirm this directly for you, but just to put anyone's mind at ease.

Cheers charlietheminxx. That makes sense, since anyone who hasn't yet drawn down could still just walkaway and go to a different bank if AIB insisted they got the old rate.

tommythecat

Just off the phone with them. They do not allow overpayments on fixed rates without penalties.

averagejoe123

Annabella1 wrote: »

So Tracker rate or AIB fixed rate 3.3% for 10 years

(impossible question?)

What is your tracker rate? How much/what term is outstanding on your mortgage?

Fixing for 10 years is a very long time IMHO

hanaimai

iluvfatfrogs wrote: »

No clawback if you remain for period of fixed term.

Yes there is the conveyance cost, but I'd imagine that'd be nothing compared the savings in switching to another bank with the cheapest rate at time of switch

No clawback in any circumstances. If you leave before the fixed term expires you may have to pay a breakage fee but this is completely separate from the cashback (and applied by all banks).

On the conveyance cost most banks have offers if you switch to them that will cover the cost of switching (and sometimes more) e.g. KBC 3000e, others have the cashback offers etc. The savings to be made by paying less interest per month are absolutely worth it.

wally79

tommythecat wrote: »

Just off the phone with them. They do not allow overpayments on fixed rates without penalties.

Weird what I was told was

Be cautious in relation to fixing over 5 years as there are no options for making lump sum or out of course additional payments to the mortgage without a potential breakage cost

awec

iluvfatfrogs wrote: »

But you'll never take it up? You'll just move (free of penalty) to the cheapest in the market?

Well, if in 5 years time you things went south and you somehow end up in negative equity you wouldn't be able to switch mortgage. So the post-fixed rate should be taken in to account.

tommythecat

wally79 wrote: »

Weird what I was told was

Be cautious in relation to fixing over 5 years as there are no options for making lump sum or out of course additional payments to the mortgage without a potential breakage cost

Well that sounds correct so. No overpayments are allowed without a penalty.

wally79

tommythecat wrote: »

Well that sounds correct so. No overpayments are allowed without a penalty.

Yeah probably didn’t think about it enough

iluvfatfrogs

awec wrote: »

Well, if in 5 years time you things went south and you somehow end up in negative equity you wouldn't be able to switch mortgage. So the post-fixed rate should be taken in to account.

Your bank will have other fixed term offers at the end of the current term though?
Or even variable?

And if its high cos other banks are high too, then it doesn't matter?

I can't see how its that important? (only as you say switching in negative equity, but even then your bank will have other fixed term offers)

u140acro3xs7dm

I have a 5 year fixed with AIB with roughly 18 months remaining. Do I just need to stick it out for the 18 months on the current rate?