AIB rate reduction

Islander13

Avatar MIA wrote: »

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.

No clawback on cashback offers

iluvfatfrogs

Avatar MIA wrote: »

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.

No clawback if you remain for period of fixed term.

Yes there is the conveyance cost, but I'd imagine that'd be nothing compared the savings in switching to another bank with the cheapest rate at time of switch

tommythecat

I’m with aib on an ltv and was just in the process of switching to a 5 year fixed with KBC but may stay if you can overpay on the aib fixed rates.

Does anyone know if aib allow you to overpay on their fixed rates?

paintinglasses

We were told no. I think some banks allow you to overpay by 10% while on fixed but not AIB while on a fixed rate.

tommythecat

paintinglasses wrote: »

We were told no. I think some banks allow you to overpay by 10% while on fixed but not AIB while on a fixed rate.

Thanks. KBC it is then! They allow 10%

BronsonTB

tommythecat wrote: »

Thanks. KBC it is then! They allow 10%

Be forewarned....
https://www.boards.ie/ttfthread/2057798459

wally79

paintinglasses wrote: »

We were told no. I think some banks allow you to overpay by 10% while on fixed but not AIB while on a fixed rate.

Got advice from AIB this morning that overpayment allowed up to 5 year fixed

charlietheminxx

Just an update for a couple of you who are finishing your mortgage applications at the moment - they confirmed to me that the 2.85% will apply at draw down, regardless of what is on your letter of offer. Of course it's worth getting them to confirm this directly for you, but just to put anyone's mind at ease.

tommythecat

wally79 wrote: »

Got advice from AIB this morning that overpayment allowed up to 5 year fixed

Oh. Do you know how much?

paintinglasses

Well you can technically overpay on a fixed rate but you will incur a penalty. If you can make overpayments on a fixed term without penalty with aib then that's a huge step forward.
Can I ask if you rang them or emailed?

awec

charlietheminxx wrote: »

Just an update for a couple of you who are finishing your mortgage applications at the moment - they confirmed to me that the 2.85% will apply at draw down, regardless of what is on your letter of offer. Of course it's worth getting them to confirm this directly for you, but just to put anyone's mind at ease.

Cheers charlietheminxx. That makes sense, since anyone who hasn't yet drawn down could still just walkaway and go to a different bank if AIB insisted they got the old rate.

tommythecat

Just off the phone with them. They do not allow overpayments on fixed rates without penalties.

averagejoe123

Annabella1 wrote: »

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

(impossible question?)

What is your tracker rate? How much/what term is outstanding on your mortgage?

Fixing for 10 years is a very long time IMHO

hanaimai

iluvfatfrogs wrote: »

No clawback if you remain for period of fixed term.

Yes there is the conveyance cost, but I'd imagine that'd be nothing compared the savings in switching to another bank with the cheapest rate at time of switch

No clawback in any circumstances. If you leave before the fixed term expires you may have to pay a breakage fee but this is completely separate from the cashback (and applied by all banks).

On the conveyance cost most banks have offers if you switch to them that will cover the cost of switching (and sometimes more) e.g. KBC 3000e, others have the cashback offers etc. The savings to be made by paying less interest per month are absolutely worth it.

wally79

tommythecat wrote: »

Just off the phone with them. They do not allow overpayments on fixed rates without penalties.

Weird what I was told was

Be cautious in relation to fixing over 5 years as there are no options for making lump sum or out of course additional payments to the mortgage without a potential breakage cost

awec

iluvfatfrogs wrote: »

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

Well, if in 5 years time you things went south and you somehow end up in negative equity you wouldn't be able to switch mortgage. So the post-fixed rate should be taken in to account.

tommythecat

wally79 wrote: »

Weird what I was told was

Be cautious in relation to fixing over 5 years as there are no options for making lump sum or out of course additional payments to the mortgage without a potential breakage cost

Well that sounds correct so. No overpayments are allowed without a penalty.

wally79

tommythecat wrote: »

Well that sounds correct so. No overpayments are allowed without a penalty.

Yeah probably didn’t think about it enough

iluvfatfrogs

awec wrote: »

Well, if in 5 years time you things went south and you somehow end up in negative equity you wouldn't be able to switch mortgage. So the post-fixed rate should be taken in to account.

Your bank will have other fixed term offers at the end of the current term though?
Or even variable?

And if its high cos other banks are high too, then it doesn't matter?

I can't see how its that important? (only as you say switching in negative equity, but even then your bank will have other fixed term offers)

u140acro3xs7dm

I have a 5 year fixed with AIB with roughly 18 months remaining. Do I just need to stick it out for the 18 months on the current rate?

averagejoe123

Avah Raspy Minefield wrote: »

I have a 5 year fixed with AIB with roughly 18 months remaining. Do I just need to stick it out for the 18 months on the current rate?

Unless you pay an exit penalty then yes

hanaimai

Avah Raspy Minefield wrote: »

I have a 5 year fixed with AIB with roughly 18 months remaining. Do I just need to stick it out for the 18 months on the current rate?

You can stay or you can ask to be switched to the lower rate. You'll have a breakage fee if you switch but no harm asking AIB how much that would be. You can then do your calculations to see if the savings are more than the breakage fee. If not, wait, if yes, switch.

Buying house2020

Looking for opinions here,

Would you recommend fixing for:

5 years 2.85%

7 years 3.15%

10 years 3.30%

The 5 year rate would be very cheap, 7 years isn't bad either, 10 year rate is higher but it guarantees being able to forecast repayments for a decade.

cruizer101

awec wrote: »

Well, if in 5 years time you things went south and you somehow end up in negative equity you wouldn't be able to switch mortgage. So the post-fixed rate should be taken in to account.

Its still not really relevant as the post fixed rent is the banks standard variable rate and knbody knows what it will be in 5 years it may be better or it may be worse than other banks at that time.
Even if you have to stick with he same bank they will have other options available to you.
Its 5 years away so far to unpredictable as to what your options will be at that point to worry about now.

averagejoe123

Buying house2020 wrote: »

Looking for opinions here,

Would you recommend fixing for:

5 years 2.85%

7 years 3.15%

10 years 3.30%

The 5 year rate would be very cheap, 7 years isn't bad either, 10 year rate is higher but it guarantees being able to forecast repayments for a decade.

The 7 year rate is the worst here V's the 5 and the 10 year. I think 10 years is far too long to fix for especially when you cannot make any overpayments w/o penalties. What stage of life are you at? 5 years would be the absolute maximum I would consider.

Whilst the rates have dropped significantly over the last few years the Irish rates are still the highest in the EU. If the rumours are to believed and there will be no longer cash back offered by the end of the year then the banks will be forced to compete exclusively on rates. This should work in the favour of borrowers

Bluefoam

averagejoe123 wrote: »

The 7 year rate is the worst here V's the 5 and the 10 year. I think 10 years is far too long to fix for especially when you cannot make any overpayments w/o penalties. What stage of life are you at? 5 years would be the absolute maximum I would consider.

Whilst the rates have dropped significantly over the last few years the Irish rates are still the highest in the EU. If the rumours are to believed and there will be no longer cash back offered by the end of the year then the banks will be forced to compete exclusively on rates. This should work in the favour of borrowers

AIB wouldn't drop the rates if they thought the risk was too high for them... Irish Times said as much this morning... https://www.irishtimes.com/business/personal-finance/aib-s-mortgage-move-suggests-interest-rates-won-t-increase-any-time-soon-1.3854946

Having said that, 5 years is a long time & 2.85% is a good rate so I'm in. It's less that the variable rate being offered at the moment & offers security in the current climate with Brexit looming & easing of world markets... I do believe that the European rate will remain at or around zero for a while, but the Irish banks are hungry bastards... so 5 years fixed for me, which will give me medium term security, at an affordable rate. Piece of mind is more important to me at the moment that possible minor financial gains over 5 years.

paintinglasses

I think we'll be taking the 5 year rate also, we'll be going from 3.6% to 2.85% which will make a significant saving to our monthly payments. We have no intention of overpaying at the moment so fixed suits us.

tommythecat

paintinglasses wrote: »

I think we'll be taking the 5 year rate also, we'll be going from 3.6% to 2.85% which will make a significant saving to our monthly payments. We have no intention of overpaying at the moment so fixed suits us.

I’m moving to KBC as AIB will not allow overpayments on the fixed. The KBC rate for 5 years is 2.6% if you mandate your salary to a current account at their bank. They also allow overpayments of 10%. And they give you 3k which more than covers the switch. We will make around 1k from the switch and go from an LTV rate of 2.95 to 2.6. Not too shabby.

pah

What is the likelihood of EBS following suit? Was planning to fix with them next month at 3%.

Thinking we should hold off now.

averagejoe123

pah wrote: »

What is the likelihood of EBS following suit? Was planning to fix with them next month at 3%.

Thinking we should hold off now.

I do not see them matching AIBs rates while they are still offering cashback on mortgages.