AIB rate reduction

carq

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https://www.independent.ie/business/personal-finance/property-mortgages/bank-shakes-up-mortgage-market-with-fixedrate-cut-37996275.html[/HTML]


Reducing their fixed rates by .45 % for new and existing customers.
Great news!

antix80

That's good news. I took out a home renovation mortgage with AIB for convenience as I bank with them and haven't had any problems with them over the years. I was disappointed with the fixed rate so I stuck with variable but now I'll be moving to the 5 year fixed.

charlietheminxx

I am supposed to be signing my mortgage offer from AIB with my solicitor tomorrow (along with my house contracts). I phoned AIB this morning to see what the story is and if they need to reissue my documentation with the new rates on it and they basically didn't know. Waiting for a call back now.

Imagine I had signed with my solicitor yesterday? I'd be gutted.

iluvfatfrogs

Very interesting move from AIB... I moved from AIB recently.. Are there any figures out there to suggest people have switched from AIB en masse and this is a reaction?

Avatar MIA

charlietheminxx wrote: »

I am supposed to be signing my mortgage offer from AIB with my solicitor tomorrow (along with my house contracts). I phoned AIB this morning to see what the story is and if they need to reissue my documentation with the new rates on it and they basically didn't know. Waiting for a call back now.

Imagine I had signed with my solicitor yesterday? I'd be gutted.

"Reducing their fixed rates by .45 % for new and existing customers."

Avatar MIA

iluvfatfrogs wrote: »

Very interesting move from AIB... I moved from AIB recently.. Are there any figures out there to suggest people have switched from AIB en masse and this is a reaction?

AIB already had the lower rates (AFAIK) so can't imagine there was a mass transfer.

iluvfatfrogs

Avatar MIA wrote: »

"Reducing their fixed rates by .45 % for new and existing customers."

This would suggest the rates will be available to new & current customers - I doubt they will just be able to switch to a new Fixed rate from a previous Fixed rate without cost/penalty.

iluvfatfrogs

Avatar MIA wrote: »

AIB already had the lower rates (AFAIK) so can't imagine there was a mass transfer.

At least 3 or 4 other bank had lower Fixed rates than AIB up until this announcement.

charlietheminxx

iluvfatfrogs wrote: »

This would suggest the rates will be available to new & current customers - I doubt they will just be able to switch to a new Fixed rate from a previous Fixed rate without cost/penalty.

Exactly, if we sign to say we will pay 3.2% then that's what we pay.... so I'm glad we hadn't yet. I assume the reference to existing customers is for those on variable rates.

Avatar MIA

iluvfatfrogs wrote: »

This would suggest the rates will be available to new & current customers - I doubt they will just be able to switch to a new Fixed rate from a previous Fixed rate without cost/penalty.

You're right. I just took the wording from the above post. But from RTE they're saying...

AIB said the revised fixed rates come into effect from April 10 for all new customers and existing variable rate customers who wish to opt for a fixed rate.

antix80

charlietheminxx wrote: »

Imagine I had signed with my solicitor yesterday? I'd be gutted.

Were you going with their fixed rate, and if so, why? It was a terrible 5-year rate relative to competitors on the market.

hanaimai

Avatar MIA wrote: »

You're right. I just took the wording from the above post. But from RTE they're saying...

AIB said the revised fixed rates come into effect from April 10 for all new customers and existing variable rate customers who wish to opt for a fixed rate.

Yes but if you're in a fixed rate already with AIB you will still have to switch to the new rate, which could involve a breakage fee.

carq

any idea of what the breakage would be - i have just paid my first month mortgage there so maybe a bit of leeway may be in order ?

Avatar MIA

hanaimai wrote: »

Yes but if you're in a fixed rate already with AIB you will still have to switch to the new rate, which could involve a breakage fee.

Correct, that's what my updated post quoting RTE says.

Avatar MIA

carq wrote: »

any idea of what the breakage would be - i have just paid my first month mortgage there so maybe a bit of leeway may be in order ?

Almost certainly worth it. There was a thread on here recently and the break fees were minimal.

awec

We had to get our offer with AIB renewed there last week, they issued the offer letter again but we haven't signed it with our solicitor yet.

I'll be getting them to re-issue it again now, and not signing the one they've already sent. That's a significant drop.

voluntary

I'd expect rates to drop even lower while banks slowly offfload bad loans on vulture funds etc.
Banks in other eurozone countires offer below 1.5% rates. Even adding an 'Irish premium' of 25% on top of that, still gives a large space for reductions.

charlietheminxx

antix80 wrote: »

Were you going with their fixed rate, and if so, why? It was a terrible 5-year rate relative to competitors on the market.

Yes we were going with their 3 year fixed rate. We needed certainty on repayments for the first while which is why we went fixed and we went with AIB because they approved us for an exemption on the LTI rules.

charlietheminxx

awec wrote: »

We had to get our offer with AIB renewed there last week, they issued the offer letter again but we haven't signed it with our solicitor yet.

I'll be getting them to re-issue it again now, and not signing the one they've already sent. That's a significant drop.

Will you update here with how you get on? Looks like we are in the same boat.

iluvfatfrogs

carq wrote: »

any idea of what the breakage would be - i have just paid my first month mortgage there so maybe a bit of leeway may be in order ?

As of just before xmas, AIB seemed to be the only bank actually charging non-minimal breakage fees.
I paid €1,000 with 18 months left on a fixed term period.

paintinglasses

AIB dropped their fixed rates about 3 months after we drew down our mortgage. Basically they were charging us €950+ breakage fee, the savings we would have made moving didn't cover this. According to ask about money forum, aib are the only bank that work out their breakage fees a certain way which makes it more expensive.

We are coming to the end of our fixed term now so will be looking into our new plan of action!

Edit: One poster on AAM was quoted a zero break fee which is why I looked into it. But we were not so lucky, even after we pushed them on it.

mossy464

carq wrote: »

any idea of what the breakage would be - i have just paid my first month mortgage there so maybe a bit of leeway may be in order ?

We were in a similar situation back in 2017 when AIB dropped their fixed rates after just a month or two of paying our mortgage. I contacted them and we were able to switch to the new fixed rate without penalty.

Annabella1

So Tracker rate or AIB fixed rate 3.3% for 10 years

(impossible question?)

James Forde

Here's hoping Haven follow suit!

howsshenow

Low rates??
Am looking at moving to Ulster Bank at moment, 2 yr Fixed @ 2.3 percent + expenses paid.
I would call that low.

smurfette2212

Does ‘existing’ mean contract signed, or mortgage drawndown?

We may have missed this by a few days (having opted for their fixed rate for stability purposes!)

Hopefully EBS copy this soon.

Geuze

I hope AAM don't mind me copying this table here.

https://www.askaboutmoney.com/threads/aib-reduces-its-fixed-rates.212451/

Best Buys for LTVs <90%

Avatar MIA

Geuze wrote: »

I hope AAM don't mind me copying this table here.

https://www.askaboutmoney.com/threads/aib-reduces-its-fixed-rates.212451/

Best Buys for LTVs <90%

It's the fixed rate available after initial fixed period that's important.

iluvfatfrogs

Avatar MIA wrote: »

It's the fixed rate available after initial fixed period that's important.

But you'll never take it up? You'll just move (free of penalty) to the cheapest in the market?

Avatar MIA

iluvfatfrogs wrote: »

But you'll never take it up? You'll just move (free of penalty) to the cheapest in the market?

Isn't there a clawback on the cash offer? And it's not free to transfer, you've to go through the cost of conveyance again.