AIB, EBS cut interest rates!

kennyb3 · 31-10-2014 3:49pm

Woshy wrote: »

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?

Existing rates here, use calculator I gave you and take off 0.25% which was cut. (effective from December I assume like rest of AIB Group)

Idioteque · 01-11-2014 12:59pm

The main good thing I see about the announcement is it might prompt the other banks to lower rates...BUT, I don't get the excitement over AIB's rates as even with the new rate, they are still more expensive...

e.g. (Repayments on €250K Mortgage over 30 years @ LTV of 90%)
AIB, 3 Yr fixed: 3.8% (4.61% APR) = €461,917.95
Ulster Bank, 3 Yr fixed: 4.25% (4.5% APR) = €456,016.78

5 Year fixed is even worse! (€20K more expensive)

AIB, 5 Yr fixed: 3.9 % (4.88% APR) = €476,560.58
Ulster Bank, 5 Yr fixed: 4.35% (4.5% APR) = €456,016.78

Their new variable rate is pretty much the same as the other banks (APR)

Unless I'm missing something?

micks_address · 02-11-2014 7:13pm

Idioteque wrote: »

The main good thing I see about the announcement is it might prompt the other banks to lower rates...BUT, I don't get the excitement over AIB's rates as even with the new rate, they are still more expensive...

e.g. (Repayments on €250K Mortgage over 30 years @ LTV of 90%)
AIB, 3 Yr fixed: 3.8% (4.61% APR) = €461,917.95
Ulster Bank, 3 Yr fixed: 4.25% (4.5% APR) = €456,016.78

5 Year fixed is even worse! (€20K more expensive)

AIB, 5 Yr fixed: 3.9 % (4.88% APR) = €476,560.58
Ulster Bank, 5 Yr fixed: 4.35% (4.5% APR) = €456,016.78

Their new variable rate is pretty much the same as the other banks (APR)

Unless I'm missing something?

Switching to 3 year fixed with aib sees our payments drop by 90 euro a month. Thinking of signing up tomorrow. Any downside?

jon1981 · 02-11-2014 7:19pm

micks_address wrote: »

Switching to 3 year fixed with aib sees our payments drop by 90 euro a month. Thinking of signing up tomorrow. Any downside?

I guess it's a downside if the SVR comes down further in the 3 years past the fixed rate , which it might. Not really a downside on your current position as you still save, but could be a future downside.

I'm in the same situation and thinking of fixing for 1 year instead and see what happens.

dar100 · 02-11-2014 8:24pm

Got a mortgage with AIB a few months ago, fixed for 5 years. Can I get out of this, and if so would it be worth my while?

gaius c · 02-11-2014 8:34pm

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?

Getting loss-making trackers off their books would help a lot.

gaius c · 02-11-2014 8:37pm

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).

And their charges on that current account?

Fees & Charges Clear and Simple

Quarterly Fee €6.00*
ATM Withdrawals €0.30 each*
Cheque Lodgements €0.30 each*

Time for some sums.

Heisenberg1 · 02-11-2014 8:56pm

dar100 wrote: »

Got a mortgage with AIB a few months ago, fixed for 5 years. Can I get out of this, and if so would it be worth my while?

If you have drawn down and have made a payment then no you won't be able to get the new rate. You should contact the bank and ask to do this but you may be subject too a pay a penalty.

dar100 · 02-11-2014 9:35pm

Heisenberg1 wrote: »

If you have drawn down and have made a payment then no you won't be able to get the new rate. You should contact the bank and ask to do this but you may be subject too a pay a penalty.

I've drawn down but haven't made first payment as of yet ?

Eldarion · 03-11-2014 11:46am

dar100 wrote: »

I've drawn down but haven't made first payment as of yet ?

Doesn't matter. You made the bet when you signed the papers. Would you be happy if the bank wanted to increase your Fixed rate if interest rates went up to 6% tomorrow? It's effectively the same thing you're asking them to do. Fixed is fixed.

fxotoole · 03-11-2014 12:05pm

ffactj wrote: »

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.

Link?

Balmed Out · 03-11-2014 12:42pm

fxotoole wrote: »

Link?

http://www.askaboutmoney.com/showthread.php?t=188652

Brendan Burgess has been bringing it up a fair bit in the media recently.

NewCorkLad · 03-11-2014 2:27pm

dar100 wrote: »

I've drawn down but haven't made first payment as of yet ?

Contact the bank straight away there may be a cooling off period

happypants · 04-11-2014 10:23am

ffactj wrote: »

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.

Can you link to the story? I'd like to have a read of it

jester77 · 04-11-2014 10:28am

ffactj wrote: »

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.

and rightly so. Those rates are beyond a joke. You can get fixed for 20 years here for

%, and if you build an energy efficient house you can get 100k of that fixed at around 1.5%.

Mongfinder General · 04-11-2014 3:47pm

jester77 wrote: »

and rightly so. Those rates are beyond a joke. You can get fixed for 20 years here for %, and if you build an energy efficient house you can get 100k of that fixed at around 1.5%.

It doesn't look like EBS have cut their variable rate judging by their website. It is still at 4.58%?

toby2111 · 04-11-2014 4:54pm

Mongfinder General wrote: »

It doesn't look like EBS have cut their variable rate judging by their website. It is still at 4.58%?

Well,they have to as it was announced that it will drop to 4.33%. They'll prob update it soon.

kennyb3 · 04-11-2014 5:36pm

toby2111 wrote: »

Well,they have to as it was announced that it will drop to 4.33%. They'll prob update it soon.

Dates change in December - same as the date listed on AIB website (can't remember off hand but think its 1/12 or 4/12)

Mongfinder General · 04-11-2014 8:17pm

toby2111 wrote: »

Well,they have to as it was announced that it will drop to 4.33%. They'll prob update it soon.

thanks Toby. It's just that EBS updated the website, changed all the fixed rates but kept the variable at 4.58

nightpark · 04-11-2014 10:45pm

Any sign of BOI following suit?

Chris_5339762 · 04-11-2014 11:18pm

...and KBC?

o1s1n · 05-11-2014 10:40am

Chris_5339762 wrote: »

...and KBC?

Fingers crossed they're coming up with a plan to outdo AIB.

Tracker mortgages for all?

Ranleth · 06-11-2014 10:05pm

Anyone considering the new fixed rates?

micks_address · 06-11-2014 10:25pm

Ranleth wrote: »

Anyone considering the new fixed rates?

I went three years fixed at 3.8

Arbiter of Good Taste · 07-11-2014 9:24am

nightpark wrote: »

Any sign of BOI following suit?

I think BOI said yesterday that they would not be.

opinionated3 · 27-11-2014 11:04am

Was thinking of going from variable with ebs to their fixed rate. Does anyone here know if those rates would be likely to fall further in the coming months or am I better off grasping the nettle now? Also would I be allowed to keep paying my current amount into the new term in an effort to reduce the overall term left or would I be penalised interest for doing this? Thanks

celticbhoy27 · 27-11-2014 11:14am

opinionated3 wrote: »

Was thinking of going from variable with ebs to their fixed rate. Does anyone here know if those rates would be likely to fall further in the coming months or am I better off grasping the nettle now? Also would I be allowed to keep paying my current amount into the new term in an effort to reduce the overall term left or would I be penalised interest for doing this? Thanks

Its hard to know if rates will fall much further if at all, the interesting/worrying thing is that boi have not followed suit in dropping theirs. As far as overpaying goes its generally a good idea to do it as long as you can afford to do so. It'l lessen the length of your loan aswel as the interest you pay

opinionated3 · 27-11-2014 11:38am

celticbhoy27 wrote: »

Its hard to know if rates will fall much further if at all, the interesting/worrying thing is that boi have not followed suit in dropping theirs. As far as overpaying goes its generally a good idea to do it as long as you can afford to do so. It'l lessen the length of your loan aswel as the interest you pay

Thanks for your reply. Would I be penalised for paying over the rate each month?

jon1981 · 27-11-2014 12:06pm

opinionated3 wrote: »

Thanks for your reply. Would I be penalised for paying over the rate each month?

I think some banks do. So perhaps save the difference and pay it down at the end of the fixed term?

Eldarion · 27-11-2014 12:59pm

opinionated3 wrote: »

Thanks for your reply. Would I be penalised for paying over the rate each month?

Are you on a variable rate? Then no.

Are you on a fixed rate? Then yes.

AIB, EBS cut interest rates!

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