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AIB to raise variable mortgage rate by 0.5%

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    #2
    jameshayes
    Registered Users Posts: 3,772 ✭✭✭jameshayes


    Thats disappointing for me as I am a new AIB mortgage customer, although they are still the cheapest on the market at the moment and I have no interest in a fixed rate so I am moderately happy


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    #3
    celticbhoy27
    Registered Users Posts: 885 ✭✭✭celticbhoy27


    minor inconvenience given todays thriving economy........ Oh wait..... people are struggling to pay there bills already at the moment and these assholes raise rates by .5%. ECB recently brought down rates by .25%, they didnt pass that on - fair enough.. but to raise them is a real kick in the teeth!!


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    #4
    Rebel1977
    Registered Users Posts: 802 ✭✭✭Rebel1977


    Essentially it's a increase of 0.75% as AIB didnt pass on the last rate change by the ECB. It's making things harder for people. fair enough they are not making money buy why punish people who are already struggling


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    #5
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    Rebel1977 wrote: »
    Essentially it's a increase of 0.75% as AIB didnt pass on the last rate change by the ECB. It's making things harder for people. fair enough they are not making money buy why punish people who are already struggling

    its not essentially a 0.75% increase. Not all banks should be expected to drop SVR when ECB rate drops. its a 0.5% increase, simple as.

    I dont agree with it myself, I think a 0.25% could have been attempted first but obviously they have the numbers they need to get profitable. I want them to be profitable but its a harsh call also. Given they have the lowest rate in the market it is understandable also.


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    #6
    Rebel1977
    Registered Users Posts: 802 ✭✭✭Rebel1977


    Why punish everyone ? They should have maybe introduced it for new business only


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    #7
    Galwayguy35
    Registered Users Posts: 16,551 ✭✭✭✭Galwayguy35


    Rebel1977 wrote: »
    Why punish everyone ? They should have maybe introduced it for new business only

    Very few mortgages are being approved these days, they will lump it on existing customers to make as much back as they can.


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    #8
    the groutch
    Closed Accounts Posts: 16,096 ✭✭✭✭the groutch


    don't think it's just coincidence that they did this while the Dail was on holidays, we all know how vocal Gilmore has been against banks not passing on rate cuts.


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    #9
    NIMAN
    Registered Users Posts: 33,598 ✭✭✭✭NIMAN


    We own them, so technically have the Gov not got the power to veto this?

    Having said that, its a fine line, as I heard their CEO say that they have to do their best to get a return and profit for the tax payer. Thats fair enough, but if they force people who were just about able to pay their mortgages to default, then they will get nothing from people who were paying.


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    #10
    chris85
    Registered Users Posts: 4,502 ✭✭✭chris85


    NIMAN wrote: »
    We own them, so technically have the Gov not got the power to veto this?

    Having said that, its a fine line, as I heard their CEO say that they have to do their best to get a return and profit for the tax payer. Thats fair enough, but if they force people who were just about able to pay their mortgages to default, then they will get nothing from people who were paying.

    Its a fine line indeed. They will have looked at the increased revenue it will bring in versus the social impact it has, no choice but to consider this considering the stake the government has there, but they most likely have weighed up the further defaults they may get and consider themselves ok with the extra revenue gained from paying customers.


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    #11
    Newgrange Warrior
    Registered Users Posts: 143 ✭✭Newgrange Warrior


    Here we go again-

    AIB is hiking its mortgage interest rates, and those of its subsidiaries.

    Variable rate customers at AIB will see their rate increase by 0.4% from June.

    Those with variable rate homeloans from EBS and Haven will have to pay an extra 0.25%.

    In a statement AIB said that it does not anticipate any further rate hikes this year.

    http://www.irishexaminer.com/breakingnews/business/aib-to-hike-mortgage-interest-rates-592365.html


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    #12
    phoenix999
    Banned (with Prison Access) Posts: 581 ✭✭✭phoenix999


    Taking out a tracker mortgage was one of best decisions i've ever made. Paying just 1.90%. Hopefully that will drop to 1.65% if ECB reduces rates again.:)


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    #13
    celticbhoy27
    Registered Users Posts: 885 ✭✭✭celticbhoy27


    phoenix999 wrote: »
    Taking out a tracker mortgage was one of best decisions i've ever made. Paying just 1.90%. Hopefully that will drop to 1.65% if ECB reduces rates again.:)

    Hooray for you


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    #14
    murphaph
    Registered Users Posts: 19,020 ✭✭✭✭murphaph


    celticbhoy27 wrote: »
    Hooray for you
    In fairness trackers were widely available and anyone on a variable rate from before the dawn of trackers could have changed (I did).

    Anyone who took out a standard variable rate mortgage since the demise of trackers knows what they were getting in to.

    What is annoying is that trackers don't exist at all any more in Ireland. They could have kept them but increased the margin to sensible levels so folks would know they'd always get the benefit of an ECB rate reduction (and take the hit when ECB rates go up). In Germany trackers were always available and remain so, but with sensible margins that mean the banks never lost money on them!


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