Advertisement
If you have a new account but are having problems posting or verifying your account, please email us on hello@boards.ie for help. Thanks :)
Hello all! Please ensure that you are posting a new thread or question in the appropriate forum. The Feedback forum is overwhelmed with questions that are having to be moved elsewhere. If you need help to verify your account contact hello@boards.ie

AIB, EBS cut interest rates!

13»

Comments

  • Registered Users Posts: 2,280 ✭✭✭toby2111


    I'm also tempted by EBS 2 year fixed at 3.8% which would be roughly a further 0.5% drop on the 4.33% of their new variable.........But somethings telling me to wait and that they might drop a few more times within that 2 year period. I reckon the other banks may follow AIB/EBS in the next month or 2. Its a guessing game really!!Think I'll give it a few months and then fix if theres no further drop in the SVR.


  • Registered Users Posts: 302 ✭✭Trend Setter in Training


    I went for the one year fixed with AIB for 3.5%, picture should be a little bit clearer by then...


  • Registered Users Posts: 2,280 ✭✭✭toby2111


    That's a great 1 year rate. Must check if EBS have that


  • Registered Users Posts: 880 ✭✭✭celticbhoy27


    I went for the one year fixed with AIB for 3.5%, picture should be a little bit clearer by then...

    Are you only taking out a mortgage? The 3.5% is for new custom only?


  • Registered Users Posts: 12,030 ✭✭✭✭KCross


    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


    Methinks the banks are trying to fool us here. They always have the fixed rates set to suit themselves as they generally have a better idea of what direction the rates are going to go over the next few years. AIB have already reported a rate drop from 1 Dec and KBC are trying hard to take customers, so my gut tells me there will be another drop in the next year.

    If you take the 1 Dec rate of 4.05% and the 3 year fixed rate of 3.80% it will only take one 0.25% drop for the SVR to match the 3 year fixed.

    The fixed rate is the fixed rate for that term, it wont change. The variable rate will generally follow market conditions so I prefer that, particularly when there isnt much difference between them right now. It can of course work against you.

    Its a guessing game for sure, but for me Im always suspicious of fixed rates as the bank set those knowing what their rate strategy is for that timeframe and they set the rate to maximise their profit, not yours!


  • Advertisement
  • Registered Users Posts: 302 ✭✭Trend Setter in Training


    Are you only taking out a mortgage? The 3.5% is for new custom only?

    New custom correct.

    Lowest in the market currently as far as I can see.


  • Registered Users Posts: 302 ✭✭Trend Setter in Training


    KCross wrote: »
    Methinks the banks are trying to fool us here. They always have the fixed rates set to suit themselves as they generally have a better idea of what direction the rates are going to go over the next few years. AIB have already reported a rate drop from 1 Dec and KBC are trying hard to take customers, so my gut tells me there will be another drop in the next year.

    If you take the 1 Dec rate of 4.05% and the 3 year fixed rate of 3.80% it will only take one 0.25% drop for the SVR to match the 3 year fixed.

    The fixed rate is the fixed rate for that term, it wont change. The variable rate will generally follow market conditions so I prefer that, particularly when there isnt much difference between them right now. It can of course work against you.

    Its a guessing game for sure, but for me Im always suspicious of fixed rates as the bank set those knowing what their rate strategy is for that timeframe and they set the rate to maximise their profit, not yours!

    +1 on that, the only reason I've gone fixed as it gives reassurance on monthly outgoings for a set period, easier to budget. I also don't think the variable will come anywhere near 3.5% of the new custom fixed rate that AIB are offering. Hopefully this time next year the variable rates will be down under 4%


  • Registered Users Posts: 2,280 ✭✭✭toby2111


    One question - why did AIB group cut their SVR and offer semi-attractive fixed rates? Was there pressure from the ECB cos of the stress tests? I'm confused, as it's not like banks to give customers a bit of a break. Is there something coming down the line? Are they afraid of the potential verdict of that court case?


  • Registered Users Posts: 3,528 ✭✭✭gaius c


    toby2111 wrote: »
    One question - why did AIB group cut their SVR and offer semi-attractive fixed rates? Was there pressure from the ECB cos of the stress tests? I'm confused, as it's not like banks to give customers a bit of a break. Is there something coming down the line? Are they afraid of the potential verdict of that court case?

    Not in the slightest. They just don't want to lose people who actually pay their mortgages to competitors.


  • Registered Users Posts: 2,143 ✭✭✭opinionated3


    I contacted my local ebs yesterday about this. They are good rates alright and i AM allowed to overpay my mortgage each month apparently. I set the fixed rate first and then follow it up with a fixed monthly payment request. The girl said in my situation anyway there is no penalty. Actually worked it out that i would cut roughly 1.9 years off the mortgage term if i continued on with it. ...


  • Advertisement
Advertisement