AIB green home mortgage

lausp · 30-12-2019 11:30am #1

Hi all,

Have just over 200k left on mortgage and (27!!) years left to go.

House is BER B3 rated and I noticed AIB are offering 2.5% fixed for 5 years for houses B3 and better.

Anyone got any thoughts on this? I am on the standard variable rate at the moment, don't see ability to overpay in next few years, have kids in creche etc.

listermint · 30-12-2019 11:33am

lausp wrote: »

Hi all,

Have just over 200k left on mortgage and (27!!) years left to go.

House is BER B3 rated and I noticed AIB are offering 2.5% fixed for 5 years for houses B3 and better.

Anyone got any thoughts on this? I am on the standard variable rate at the moment, don't see ability to overpay in next few years, have kids in creche etc.

I think KBC and Ulster have similar offers without the ber nonsense. Which is window dressing

Shop around

Dolbhad · 30-12-2019 2:02pm

As other poster has said, other banks like BOI have similar offers so check them out as they could also have cash back offers. I know some banks will cover the “legal costs” of switching but in reality it’s a cash back offer. BER cert’s are valid for 10 years so just check your Cert is in date. You don’t say when you bought the house or if it was a new build or second hand house.

Mike3549 · 30-12-2019 4:03pm

listermint wrote: »

I think KBC and Ulster have similar offers without the ber nonsense. Which is window dressing

Shop around

I heard that with ulster youll go straight to variable after the fixed term and their svr is massive like 4.2%.

Im with aib and thinking of switching to this deal. My ber cert still valid for another 5 years. Also not everybody can switch to another bank.
Im self employed for the last 2 years. I need 3 years audited accounts and my numbers dont look that good.

If you are with aib i think its a no-brainer, no remorgages, revalueations, solicitors etc

van_beano · 30-12-2019 4:09pm

Switched to this from an LTV rate of 2.95% last week, will be saving around €50 per month. Felt it was a no-brainer decision really considering there isn't much to do other than sign a form and send it with the BER cert to the bank.

lausp · 30-12-2019 6:25pm

van_beano wrote: »

Switched to this from an LTV rate of 2.95% last week, will be saving around €50 per month. Felt it was a no-brainer decision really considering there isn't much to do other than sign a form and send it with the BER cert to the bank.

This is what I am thinking too. Bought in 2012 and would be under 50% LTV at this point but officially I am not allowed to move to a LTV with AIB since I started on one.

van_beano · 30-12-2019 6:37pm

lausp wrote: »

This is what I am thinking too. Bought in 2012 and would be under 50% LTV at this point but officially I am not allowed to move to a LTV with AIB since I started on one.

They told me that the LTV I am coming off will be offered back to me when the 5 year fixed is up. It'll be up to me then to decide if I want to go to an LTV rate or another fixed rate.

lausp · 30-12-2019 8:35pm

van_beano wrote: »

They told me that the LTV I am coming off will be offered back to me when the 5 year fixed is up. It'll be up to me then to decide if I want to go to an LTV rate or another fixed rate.

My contract stated I could not switch to a different LTV, only a fixed rate, which then reverts to the SVR once the fixed term expired.

van_beano · 30-12-2019 8:40pm

lausp wrote: »

My contract stated I could not switch to a different LTV, only a fixed rate, which then reverts to the SVR once the fixed term expired.

I rang them specifically to ask them what happens at the end of the fixed term, they told me I will be given a list of options and one of them will be my current LTV rate (regardless if this changes up or down).

baldbear · 30-12-2019 8:47pm

Just switched from AIB to UB 2.3% fixed rate for 2 years.
. They paid for valuation and €1500 for legal fees. You can also overpay if you wish.

Why not go that route?

pwurple · 31-12-2019 1:29pm

baldbear wrote: »

Just switched from AIB to UB 2.3% fixed rate for 2 years.
. They paid for valuation and €1500 for legal fees. You can also overpay if you wish.

Why not go that route?

Ulster bank is 60% loan to value ratio, or higher only. What's your LTV OP?
You come off it onto an eye-watering rate of 3.5% as well.

AIB's standard variable at the end is lower.

lausp · 31-12-2019 6:11pm

pwurple wrote: »

Ulster bank is 60% loan to value ratio, or higher only. What's your LTV OP?
You come off it onto an eye-watering rate of 3.5% as well.

AIB's standard variable at the end is lower.

It looks like AIB do not allow you to return to the SVR as they are not offering it any more, as per:
https://aib.ie/content/dam/aib/personal/docs/our-products/mortgages/mortgage-amendment-form.pdf

Effectively you would be locked in to a LTV rate after the fixed term.

My LTV would be < 50% at this point.

van_beano · 31-12-2019 7:43pm

There could be another option of the Green mortgage again in 5 years

KilOit · 01-01-2020 1:53pm

Was also looking at this and wondering what happened after the 5 years. Currently we are 2.95 LTV <80 with AIB, good to know you can just go back on the LTV rate.
We moved into a C1 and only change we done was change all the wooden floors to carpets with underlay and changed all the bulbs to low energy saving bulbs. hardly going to jump to B3 is it?

Just checked and it's current BER is C1 165.59 (kWh/m2/yr) it would need <150 kWh/m2/yr to get BER B3. Cost of attaining this would probably negate the savings

van_beano · 01-01-2020 7:46pm

Simple things like attic insulation and boiler controls could get you into a B3. A lot of energy companies are giving free boiler controls (Hive, Near etc) these days if you take out a contract with them.

KilOit · 01-01-2020 10:07pm

van_beano wrote: »

Simple things like attic insulation and boiler controls could get you into a B3. A lot of energy companies are giving free boiler controls (Hive, Near etc) these days if you take out a contract with them.

Meant to say I got a nest as well. Might go ahead with a ber survey then

pwurple · 01-01-2020 10:44pm

I am wary to fix whenever I see a fixed rate below the current Ltv rate. That’s a good indicator of an inverted yield curve for the bank. Normally fixed are a higher rate. It usually means that the bank believes rates will be lower in the future than they are now.

They could intend to drop the ltv rates in that five year period to below that fixed rate.

KilOit · 01-01-2020 10:55pm

pwurple wrote: »

I am wary to fix whenever I see a fixed rate below the current Ltv rate. That’s a good indicator of an inverted yield curve for the bank. Normally fixed are a higher rate. It usually means that the bank believes rates will be lower in the future than they are now.

They could intend to drop the ltv rates in that five year period to below that fixed rate.

It's a pure gamble. banks are saying it won't go lower so i would be of the opinion they will go lower.

van_beano · 01-01-2020 10:59pm

pwurple wrote: »

I am wary to fix whenever I see a fixed rate below the current Ltv rate. That’s a good indicator of an inverted yield curve for the bank. Normally fixed are a higher rate. It usually means that the bank believes rates will be lower in the future than they are now.

They could intend to drop the ltv rates in that five year period to below that fixed rate.

I totally agree with you, I’ve was thinking the same since I switched to the LTV rate around 2 years ago, there hasn’t been much movement since though.

Don’t think anyone can say for definite when rates will fall. Might as well live for the here and now, which means I’m €51 better off per month. If rates fall then there’s no issue requesting a breakage fee quote from the bank.

listermint · 01-01-2020 11:00pm

KilOit wrote: »

Meant to say I got a nest as well. Might go ahead with a ber survey then

Don't get a new ber based of you getting a nest unless you like pissing money away.

You need to insulate the attic amongst other simple things. A nest isn't going to move the dial significantly . Excuse the pun

KilOit · 01-01-2020 11:13pm

listermint wrote: »

Don't get a new ber based of you getting a nest unless you like pissing money away.

You need to insulate the attic amongst other simple things. A nest isn't going to move the dial significantly . Excuse the pun

Attic is very well insulated, boiler and hot tank are A rated, not much else to do other than insulate walls or get triple glaze windows. So i'm hoping the new carpet with underlay throughout house, Nest and energy saving bulbs could shave off 15 kWh/m2/yr to bring it to B3

listermint · 01-01-2020 11:21pm

KilOit wrote: »

Attic is very well insulated, boiler and hot tank are A rated, not much else to do other than insulate walls or get triple glaze windows. So i'm hoping the new carpet with underlay throughout house, Nest and energy saving bulbs could shave off 15 kWh/m2/yr to bring it to B3

It's not what you do so much as what you can prove. Ber system is a load of checklist ballax.

baldbear · 18-01-2020 9:16am

pwurple wrote: »

Ulster bank is 60% loan to value ratio, or higher only. What's your LTV OP?
You come off it onto an eye-watering rate of 3.5% as well.

AIB's standard variable at the end is lower.

Just under 80% . Was planning to switch again in 2 years or maybe go on a good fixed rate with UB if possible. Ill make sure I won't go onto that 3.5% rate.

Darc19 · 18-01-2020 9:26am

Ulster are now offering a 5 year fixed of 2.2%

Regarding the rate you go to after fixed period, the DEFAULT rate is standard variable.

But you are provided with options including whatever fixed rates are available then.

Only if you don't choose an option do you go to the SVR.

Ulster Bank (and aib) say that every rate is available to both New and current customers.

I'd avoid Ptsb - they charge current customers a large premium over new customers

Thomas16 · 14-02-2020 11:31am

Hi,

I'm with KBC on variable rate. I'm planning to move fixed rate. But, KBC needs valuation cert each time when we switch from variable to fixed. That's frustrating and we have to pay 130 euro each time.

But, other banks (aib) permit to change variable to fixed at any stage without any valuation. I think, AIB is more flexible and low rates.. Also, Ulster bank..
Dont know which bank is better among them?

van_beano · 24-02-2020 9:25am

Green Mortgage to be reduced by .5% to 2.45%.

Other three and five year fixed rates reducing by .3% to 2.55% each

Not much difference between normal fixed and Green fixed other than the cost it takes to get an older house to a decent BER

https://www.herald.ie/news/aib-enters-mortgage-price-war-by-cutting-rates-for-customers-38983714.html

carq · 24-02-2020 9:41am

Since getting a mortgage last year with AIB i started on 3.15 % + 3.35% for a fix / variable.
Then the rates dropped to 2.85 last year and i fixed for 3 years.
Can i switch again to the 2.55 rate for the fixed rate without breakage ?

bricky06 · 24-02-2020 10:38am

I am in the same boat carq, took out a 3 year fixed at 3.15% and was then put on to 2.85%.

Will existing customers get this rate cut to 2.55 now as well?

van_beano · 24-02-2020 12:36pm

bricky06 wrote: »

I am in the same boat carq, took out a 3 year fixed at 3.15% and was then put on to 2.85%.

Will existing customers get this rate cut to 2.55 now as well?

Were you on the 3.15% fixed originally and then automatically moved to 2.85% fixed? I didn’t think it was possible to move from a fix rate unless you request it and pay a breakage fee.

carq · 24-02-2020 1:04pm

van_beano wrote: »

Were you on the 3.15% fixed originally and then automatically moved to 2.85% fixed? I didn’t think it was possible to move from a fix rate unless you request it and pay a breakage fee.

i requested it and dint have to pay breakage.
i think this was due to the proximity of the mortgage starting and rates being cut.

van_beano · 24-02-2020 1:19pm

carq wrote: »

i requested it and dint have to pay breakage.
i think this was due to the proximity of the mortgage starting and rates being cut.

Ahh very good, I only went to the 2.5% rate 2 months ago, might give them a buzz and see if I can go to 2.45% for free. Be only saving about €4.50 per month for me so no point paying a breakage fee for that.

AIB green home mortgage

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