AIB rate reduction

JohnNightmare

Sorry to interrupt. Can you switch mortgages more than once to keep getting deals? eg, go fixed for 3/5 years than move lenders etc???? Also all these cash back offers for legal fees etc if you go with them are you only locked to them an x amount of time or is it for the remaining years of your mortgage. Ie , if you get your €2000 off them for legal fees etc and go fixed for 3 years are you free to move again?

averagejoe123

JohnNightmare wrote: »

Sorry to interrupt. Can you switch mortgages more than once to keep getting deals? eg, go fixed for 3/5 years than move lenders etc???? Also all these cash back offers for legal fees etc if you go with them are you only locked to them an x amount of time or is it for the remaining years of your mortgage. Ie , if you get your €2000 off them for legal fees etc and go fixed for 3 years are you free to move again?

You are free to move as often as you like. Some banks require you to have been with your previous lender for a minimum period of time.

Great info on multiple switches here

https://www.askaboutmoney.com/threads/i-got-cash-back-three-times-in-6-months.211443/

MF290

Am I correct in saying the current variable rate will be going down to 2.75% ?

antix80

MF290 wrote: »

Am I correct in saying the current variable rate will be going down to 2.75% ?

No

MF290

antix80 wrote: »

No

2.75% for <50% LTV
A 5 year fixed is 2.85% while the current variable is 2.95%....
Would have imagined it unusual for the variable to be more expensive than a fixed option?
Is there an impending decrease in variable rates?

Chris_5339762

It would have been nice to see a reduction in the 2.75% LTV rate as its what I'm on, but it is still the cheapest variable out there so I see why they haven't.

I know Ulster Bank do a 2.3% 2 year fixed but I need to substantially overpay at the moment on a small mortgage so it isn't worth it!

bidiots

Chris_5339762 wrote: »

It would have been nice to see a reduction in the 2.75% LTV rate as its what I'm on, but it is still the cheapest variable out there so I see why they haven't.

I know Ulster Bank do a 2.3% 2 year fixed but I need to substantially overpay at the moment on a small mortgage so it isn't worth it!

I asked my branch what i could overpay, at the initial drawdown. They said 10% of the monthly mortgage, which was too small for my needs.
About a year later I rang main mortgage department in Dublin, turns out I was mislead.
I'm paying significantly over the 10%i was told at the start.
Ring the main office

cruizer101

Chris_5339762 wrote: »

It would have been nice to see a reduction in the 2.75% LTV rate as its what I'm on, but it is still the cheapest variable out there so I see why they haven't.

I know Ulster Bank do a 2.3% 2 year fixed but I need to substantially overpay at the moment on a small mortgage so it isn't worth it!

With ulster bank you can over pay up to 10% of your balance per year.
So 200k mortgage can overpay 20k per year, which is a pretty significant amount.

Another option that may work for you if you want to over pay significantly is to split the mortgage. So say half fixed and half variable, that means you can over pay as much as you want on the variable portion but get some of the advantages of better rate on the fixed portion.

antix80

cruizer101 wrote: »

Another option that may work for you if you want to over pay significantly is to split the mortgage. So say half fixed and half variable, that means you can over pay as much as you want on the variable portion but get some of the advantages of better rate on the fixed portion.

I was told my AIB that this isn't possible unless you set it up this way from the outset.
So if you're on a variable rate mortgage with AIB, you either have to fix it all or fix none of it.

Bob24

When people say overpayment are not allowed by AIB if you fix the rate, is it based on the initial mortgage terms of if you increased monthly payments while on variable can you retain that when you fix?

For exemple if you have a mortgage on variable rate with 1000 euros repayment per month.
And you then (while on variable) ask AIB to increase monthly repayment to 1500 per month (which they will do no problem and accordingly shorten the planed duration of the mortgage).
Then if you go to them and ask to Move to a fixed rate, will they force you to go back around to circa 1000 per month and make the mortgage duration longer again? Or will they let you fix based on paying 1500 per month?

tommythecat

Bob24 wrote: »

When people say overpayment are not allowed by AIB if you fix the rate, is it based on the initial mortgage terms of if you increased monthly payments while on variable can you retain that when you fix?

For exemple if you have a mortgage on variable rate with 1000 euros repayment per month.
And you then (while on variable) ask AIB to increase monthly repayment to 1500 per month (which they will do no problem and accordingly shorten the planed duration of the mortgage).
Then if you go to them and ask to Move to a fixed rate, will they force you to go back around to circa 1000 per month and make the mortgage duration longer again? Or will they let you fix based on paying 1500 per month?

No they will not allow you to do that.

Bob24

tommythecat wrote: »

No they will not allow you to do that.

Ok, thanks. So in my exemple they would for you to going back to repaying 1000 per month even though you had been paying 1500 let’s say for the past 6 months?

ted1

Chris_5339762 wrote: »

It would have been nice to see a reduction in the 2.75% LTV rate as its what I'm on, but it is still the cheapest variable out there so I see why they haven't.

I know Ulster Bank do a 2.3% 2 year fixed but I need to substantially overpay at the moment on a small mortgage so it isn't worth it!

I just got a revaluation donr to get the 2.75%. Moved from 90% ltv to below 30%!!

Tefral

My rate with AIB at the moment on a Variable is 2.95%. This is a 0.1% drop if i fix for 5 years.

A part of me thinks they are introducing this now because they can see a drop in the variables in the near future.

I haven't been overpaying my mortgage because we have a new baby, I could land in the difference (between 2.85 and 2.95%) as an overpayment instead and keep going with the gamble that it will drop? or maybe im too optimistic?

My LTV is 50-80% I have 10k to go before my LTV is 0 - 50%

Ladjacket

on a 3 year fixed rate with AIB and just paid the first month's repayment. Have asked the bank to calculate the breakage fee to move to new rate but from the replies here it doesn't look promising.

Bluefoam

I think (partly) that the new lower fixed rates are there to encourage people to sign with them & stay with them. There is an increased awareness in the market of the value of montoring your mortgage rates... Many people are switching and also taking up cash back deals... AIB are offering reasonable rate, but also locking you in for a few years in order to stop you leaving for another bank on a whim... They are looking for a bigger piece of the market & a sustained market share... I think... Maybe... and other stuff

Bob24

ted1 wrote: »

I just got a revaluation donr to get the 2.75%. Moved from 90% ltv to below 30%!!

How does the valuation work out of curiosity.

Is the valeur appointed by the bank? And do they just have a quick lock at the property register to check recent sales in this area or do that genuinely inspect the property to take that into account in the valuation.

Curious about it as I have done quite a bit of renovation work which definitely increased the resell value of my place a good bit and wondering if I can leverage that.

ted1

Bob24 wrote: »

How does the valuation work out of curiosity.

Is the valeur appointed by the bank? And do they just have a quick lock at the property register to check recent sales in this area or do that genuinely inspect the property to take that into account in the valuation.

Curious about it as I have done quite a bit of renovation work which definitely increased the resell value of my place a good bit and wondering if I can leverage that.

You need to get one of their registered values to do it.

Costs 150 euro for very little work. They basically walk around take pictures and compare it to local listings or places on the property price register

You then submit it to the bank

aloooof

Tefral wrote: »

My LTV is 50-80% I have 10k to go before my LTV is 0 - 50%

Just out of interest (and apologies for the derail) are there defined bands whereby you may be entitled / potentially eligible for a rate decrease? It seems like 0-50% and 50-80% are 2 main ones?

MF290

ted1 wrote: »

I just got a revaluation donr to get the 2.75%. Moved from 90% ltv to below 30%!!

Would that increase in valuation effect you property tax?

ted1

MF290 wrote: »

Would that increase in valuation effect you property tax?

Not till they are reassessed.

But dint get me started on LPT. In all other accounting assets are countedat the lower of the purchase price or net realisable value.
LPT is based on speculation and ignores debt. Ah look I’ve started .....

ted1

aloooof wrote: »

Just out of interest (and apologies for the derail) are there defined bands whereby you may be entitled / potentially eligible for a rate decrease? It seems like 0-50% and 50-80% are 2 main ones?

And 80+ being the third one.

aloooof

ted1 wrote: »

And 80+ being the third one.

Cheers for the info. We're in our first year still so intending on overpaying to try get down below the 80% bracket asap.

ted1

aloooof wrote: »

Cheers for the info. We're in our first year still so intending on overpaying to try get down below the 80% bracket asap.

You will need to get a new valuation to get a lower rate.

unhappyBB

Bob24 wrote: »

For exemple if you have a mortgage on variable rate with 1000 euros repayment per month.
And you then (while on variable) ask AIB to increase monthly repayment to 1500 per month (which they will do no problem and accordingly shorten the planed duration of the mortgage).

I've contacted AIB mortgage team and also the branch where I got my mortgage requesting that they increase my monthly payment to shorten the term of my variable rate mortgage. They both told me that it was not possible. Their suggestion was to set up a standing order for the amount of overpayment I'd like.
This is what I'm currently doing but every time an extra payment goes through I get a letter of confirmation sent out to me and my monthly payment amount decreases

I wonder is it possible to up the payment while switching to one of the new lower fixed rates and if not, why not

aloooof

ted1 wrote: »

You will need to get a new valuation to get a lower rate.

Understood, thanks. Seems like it'd be worth it to achieve the lower rate. (Assuming the house at least retains it's current value. Which might be a big assumption).

wench

unhappyBB wrote: »

I've contacted AIB mortgage team and also the branch where I got my mortgage requesting that they increase my monthly payment to shorten the term of my variable rate mortgage. They both told me that it was not possible. Their suggestion was to set up a standing order for the amount of overpayment I'd like.
This is what I'm currently doing but every time an extra payment goes through I get a letter of confirmation sent out to me and my monthly payment amount decreases

I wonder is it possible to up the payment while switching to one of the new lower fixed rates and if not, why not

If you look at the overpayments form here, option c does what you're after.

https://aib.ie/content/dam/aib/personal/docs/our-products/mortgages/overpayment.pdf


The default behaviour is option a, where they keep the term constant and reduce the payment amount.

earl28

I took out my mortgage last year with Haven on the 2.95% variable rate for LTV of 50% - 80%. Going to make a lump sum payment shortly that will me get below 50% LTV.

Question I have is, once under 50% LTV can I get a valuation and move to the <=50% LTV variable rate (2.75%) or am I stuck on the 50% - 80% variable rate that I qualified for when taking out the mortgage?

Bluefoam

earl28 wrote: »

I took out my mortgage last year with Haven on the 2.95% variable rate for LTV of 50% - 80%. Going to make a lump sum payment shortly that will me get below 50% LTV.

Question I have is, once under 50% LTV can I get a valuation and move to the <=50% LTV variable rate (2.75%) or am I stuck on the 50% - 80% variable rate that I qualified for when taking out the mortgage?

You can do what you like. You are on a variable rate, so can renetotiate at any time.

Bob24

earl28 wrote: »

I took out my mortgage last year with Haven on the 2.95% variable rate for LTV of 50% - 80%. Going to make a lump sum payment shortly that will me get below 50% LTV.

Question I have is, once under 50% LTV can I get a valuation and move to the <=50% LTV variable rate (2.75%) or am I stuck on the 50% - 80% variable rate that I qualified for when taking out the mortgage?

Yes you can. You’ll have to contact AIB to get one of their approved valuers to complete the valuation (at your own cost), and than you can submit this form with the valuation report: https://aib.ie/content/dam/aib/personal/docs/our-products/mortgages/mortgage-amendment-form.pdf

Edit: ahh, while it’s an AIB business I just realised Haven is technically not the same as an AIB mortgage and T&Cs might be different. So my reply is only valid assuming the policies are the same as AIBs.