Mortgage Question

whitelightrider

Hi folks,

Currently on a tracker mortgage with AIB. Just wondering would it be worth switching to a fixed rate while rates are so low now?

Also is it possible to transfer money into your mortgage account each month (if you have spare cash) to bring down your mortgage?

Toots

You'd need to look at what the fixed rates are at the moment. Some of them haven't fallen as far as the variable's have. Yes, it's possible to lodge extra money into your mortgage. I do it myself if I've got spare cash every so often.

ferga_com

I'd think long and hard before giving up your tracker rate, unless AIB will agree in writing to allow you to go back on it after your fixed rate expires. If you have to give it up, it's likely that you'll never get another so while your fixed rate might be useful for a few years, your tracker rate is gone for the balance of your mortgage term.

You can overpay a variable rate mortgage each month, but make sure that AIB know that the overpayment is intended to go directly off your capital, rather than just being an advance monthly repayment.

Regards, Liam

whitelightrider

Thanks a million folks. Talk about instant answers!!! Its faster asking the questions here than actually calling up the bank.

ball ox

I suppose it depends on how long you want to fix it for, at the minute AIB's 1 yr fixed rate is 2.4% and 2 yr is 2.8%. The tracker rates are

LTV<50% - 2.5%
LTV>50%<=80% - 2.7%
LTV>=80% - 2.9%

**IIRC

Bear in mind also that the ECB has just gone down another .5% to 1% (:eek:)

I'd be surprised if they pass on the ECB rate change with either the trackers or the fixed rates but who knows

dotsman

ball ox wrote: »

I suppose it depends on how long you want to fix it for, at the minute AIB's 1 yr fixed rate is 2.4% and 2 yr is 2.8%. The tracker rates are

LTV<50% - 2.5%
LTV>50%<=80% - 2.7%
LTV>=80% - 2.9%

**IIRC

Bear in mind also that the ECB has just gone down another .5% to 1% (:eek:)

I'd be surprised if they pass on the ECB rate change with either the trackers or the fixed rates but who knows

The tracker rates varied greatly over the years before they were removed. Mines is at ECB + 0.75 so will be enjoying 1.75 by the end of the month.

AS for AIB passing on the rate cuts - so far they have been the best (ie, a number of banks have passed on the rate cuts in full, but from keeping an eye on things over the past 7 months, AIB have always been the fastest (5 working days after the cut is introduced)). With the latest rates due to take effect from May 13th, My rate should come down to 1.75 from the 20th.

P.S. The latest rate cut was only 0.25%. The ECB rate at the moment (pre-cut) is 1.25%.

ball ox

dotsman wrote: »

P.S. The latest rate cut was only 0.25%. The ECB rate at the moment (pre-cut) is 1.25%.

woops, well spotted

ferga_com

ball ox wrote: »

I suppose it depends on how long you want to fix it for, at the minute AIB's 1 yr fixed rate is 2.4% and 2 yr is 2.8%. The tracker rates are

LTV<50% - 2.5%
LTV>50%<=80% - 2.7%
LTV>=80% - 2.9%

**IIRC

Those aren't tracker rates - they're just standard variable. Unlike a tracker, AIB can adjust these rates any time they please.

ball ox wrote: »

I'd be surprised if they pass on the ECB rate change with either the trackers or the fixed rates but who knows

They are passing on the rate cut in full to variable and tracker customers in respect of the mortgage on their own home. See here.

ball ox

ferga_com wrote: »

Those aren't tracker rates - they're just standard variable. Unlike a tracker, AIB can adjust these rates any time they please.

The standard variable is 2.5%. The rates I quoted are indeed tracker rates although LTV<50% is the same as the standard variable (2.5%)

ferga_com wrote: »

They are passing on the rate cut in full to variable and tracker customers in respect of the mortgage on their own home. See here.

Cool, did'nt know that

ball ox

...... you have me doubting myself now. Their site is down so cant check

fearandloathing

ball ox wrote: »

The standard variable is 2.5%. The rates I quoted are indeed tracker rates although LTV<50% is the same as the standard variable (2.5%)

this is completely wrong

the tracker rates are no longer offered as a product by aib and this has been the case for several months now. there is no longer a standard variable rate, this has been replaced by the 3 LTV variable options and these can be changed at any time by the bank. the 2.4% 1 year fixed rate is only available to first time buyers.

ferga_com

AIB withdrew from the sale of tracker variable mortgages on the 10th October 2008. The three LTV-based variable rates are for new customers. Their standard variable rate is for existing customers.

No lender is offering ECB trackers in Ireland at the moment.

ball ox

My bad, had my wires cross, apologies op