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AIB - how do I bargain with them to reduce mortgage rate

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  • 28-01-2020 4:13pm
    #1
    Nalz
    Registered Users Posts: 16,764 ✭✭✭✭


    Hi there,

    I'm close, about 7-12k off having a mortgage worth less than have what we believe our house to be worth, which I believe will knock our mortgage rate from 2.95 down to 2.7

    We are however considering moving to KBC to avail of the 2.2 for 2 years and 3,000 (I think) cash back offer... we'd like to know if we can, and how, to bargain with AIB to see if they can meet us have way. This would prevent us having to move and AIB would keep our business.

    Does anyone know if this is possible, and if so how do you do it?

    Many thanks
    Nalz


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    #2
    Ray Palmer
    Registered Users Posts: 8,394 ✭✭✭Ray Palmer


    Nalz wrote: »
    Hi there,

    I'm close, about 7-12k off having a mortgage worth less than have what we believe our house to be worth, which I believe will knock our mortgage rate from 2.95 down to 2.7

    We are however considering moving to KBC to avail of the 2.2 for 2 years and 3,000 (I think) cash back offer... we'd like to know if we can, and how, to bargain with AIB to see if they can meet us have way. This would prevent us having to move and AIB would keep our business.

    Does anyone know if this is possible, and if so how do you do it?

    Many thanks
    Nalz

    They won't because they don't want you even on their books at those rates. They will be very happy to see you leave. Any person you talk to in the normal course of events does not have the power either.


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    #3
    Fireball81
    Registered Users Posts: 412 ✭✭Fireball81


    Ray Palmer wrote: »
    They won't because they don't want you even on their books at those rates. They will be very happy to see you leave. Any person you talk to in the normal course of events does not have the power either.

    +1


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    #4
    Nalz
    Registered Users Posts: 16,764 ✭✭✭✭Nalz


    Really? I'm a bit surprised to be honest, but not in the know to challenge that.


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    #5
    Creamy Goodness
    Registered Users Posts: 26,578 ✭✭✭✭Creamy Goodness


    AIB offer 2.5% if you fix for 5 years and have a BER rating of B3 and above - https://aib.ie/our-products/green-mortgage


    Remember with all banks (not just AIB), you need them more than they need you. Mortgages are not their most profitable products so they've no intentions in bargaining with people.


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    #6
    Nalz
    Registered Users Posts: 16,764 ✭✭✭✭Nalz


    Creamy Goodness wrote: »
    AIB offer 2.5% if you fix for 5 years and have a BER rating of B3 and above - https://aib.ie/our-products/green-mortgage


    Remember with all banks (not just AIB), you need them more than they need you. Mortgages are not their most profitable products so they've no intentions in bargaining with people.

    Thanks for that


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    #7
    Ray Palmer
    Registered Users Posts: 8,394 ✭✭✭Ray Palmer


    Creamy Goodness wrote: »
    AIB offer 2.5% if you fix for 5 years and have a BER rating of B3 and above - https://aib.ie/our-products/green-mortgage


    Remember with all banks (not just AIB), you need them more than they need you. Mortgages are not their most profitable products so they've no intentions in bargaining with people.

    Says it in the first line. "If you are building or buying a high energy rated home...."

    So doesn't apply here as already bought.


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    #8
    Thoie
    Registered Users Posts: 6,344 ✭✭✭Thoie


    Ray Palmer wrote: »
    Says it in the first line. "If you are building or buying a high energy rated home...."

    So doesn't apply here as already bought.

    Line 3:
    You already have a mortgage loan with us, your home has a BER rating between A1 and B3 and you’ve more than five years left on the loan.


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    #9
    Ray Palmer
    Registered Users Posts: 8,394 ✭✭✭Ray Palmer


    Thoie wrote: »
    Line 3:

    Sorry my mistake


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    #10
    ILoveYourVibes
    Registered Users Posts: 15,182 ✭✭✭✭ILoveYourVibes


    Nalz wrote: »
    Hi there,

    I'm close, about 7-12k off having a mortgage worth less than have what we believe our house to be worth, which I believe will knock our mortgage rate from 2.95 down to 2.7

    We are however considering moving to KBC to avail of the 2.2 for 2 years and 3,000 (I think) cash back offer... we'd like to know if we can, and how, to bargain with AIB to see if they can meet us have way. This would prevent us having to move and AIB would keep our business.

    Does anyone know if this is possible, and if so how do you do it?

    Many thanks
    Nalz

    Say you are going to move unless they reduce your mortgage rate.

    That's it. Either they try to keep you or they don't.

    Ask them to start on the paperwork to move. You'll see if they want to keep you fairly soon.


    Doesn't matter what the rate they want to keep your business once they have you.


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    #11
    Thoie
    Registered Users Posts: 6,344 ✭✭✭Thoie


    Nalz wrote: »
    Hi there,

    I'm close, about 7-12k off having a mortgage worth less than have what we believe our house to be worth, which I believe will knock our mortgage rate from 2.95 down to 2.7

    We are however considering moving to KBC to avail of the 2.2 for 2 years and 3,000 (I think) cash back offer... we'd like to know if we can, and how, to bargain with AIB to see if they can meet us have way. This would prevent us having to move and AIB would keep our business.

    Does anyone know if this is possible, and if so how do you do it?

    Many thanks
    Nalz

    They're unlikely to bargain with an individual, but you could just phone their mortgage number, say "this is Nalz, account number 12345. I'm planning on moving to KBC for their 2.2% 2 year fixed rate with cash back - do you have anything similar?"

    The agent will see your outstanding balance and payments, and may be able to suggest an alternative AIB product that you might like. But they're unlikely to set up a special rate just for you. They like to keep people on set "products", as their systems are programmed with drop down lists for them to chose from. Having individual rates for every Tom, Dick and Nalz would cause havoc for them.


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    #12
    ILoveYourVibes
    Registered Users Posts: 15,182 ✭✭✭✭ILoveYourVibes


    Thoie wrote: »
    But they're unlikely to set up a special rate just for you.


    They do it you know.

    How much business do you have with them op?

    I mean everything not just this?


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    #13
    skallywag
    Registered Users Posts: 3,000 ✭✭✭skallywag


    ILoveYourVibes wrote: »
    They do it you know.

    They will not do it for a run of the mill mortgage I say.


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    #14
    ILoveYourVibes
    Registered Users Posts: 15,182 ✭✭✭✭ILoveYourVibes


    skallywag wrote: »
    They will not do it for a run of the mill mortgage I say.
    They have a form for it.
    Change the Loan to Value (LTV) on my current Mortgage



    https://aib.ie/our-products/mortgages/change-my-mortgage-details

    Worth asking IMO.

    Of course they can refuse. But at least you tried.


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    #15
    carltonleon
    Registered Users Posts: 1,178 ✭✭✭carltonleon


    To change on to one of the LTV mortgages you have to get a valuation of the house done on a Special AIB form with an AIB approved valuer. Costs about €150. Even if your mortgage is €60000 remaining and you have a 6 bedroom house in Malahide and the LTV is obviously less than 50% , they still require the approved valuation report.


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    #16
    ldy4mxonucwsq6
    Closed Accounts Posts: 1,537 ✭✭✭ldy4mxonucwsq6


    Nalz wrote: »
    Hi there,

    I'm close, about 7-12k off having a mortgage worth less than have what we believe our house to be worth, which I believe will knock our mortgage rate from 2.95 down to 2.7

    We are however considering moving to KBC to avail of the 2.2 for 2 years and 3,000 (I think) cash back offer... we'd like to know if we can, and how, to bargain with AIB to see if they can meet us have way. This would prevent us having to move and AIB would keep our business.

    Does anyone know if this is possible, and if so how do you do it?

    Many thanks
    Nalz

    Just move the mortgage, the 3k will cover solicitors and valuation fees.


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    #17
    ILoveYourVibes
    Registered Users Posts: 15,182 ✭✭✭✭ILoveYourVibes


    Joel Plump Ghetto wrote: »
    Just move the mortgage, the 3k will cover solicitors and valuation fees.
    Tell them you are thinking of moving op...see if they offer you anything.

    I'm serious.


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    #18
    ldy4mxonucwsq6
    Closed Accounts Posts: 1,537 ✭✭✭ldy4mxonucwsq6


    ILoveYourVibes wrote: »
    Say you are going to move unless they reduce your mortgage rate.

    That's it. Either they try to keep you or they don't.

    Ask them to start on the paperwork to move. You'll see if they want to keep you fairly soon.


    Doesn't matter what the rate they want to keep your business once they have you.

    They won't budge on rates for a bog standard mortgage.


    It's the bank who you're moving too that starts all the paperwork, very little for current mortgage provider to do other than provide a closing balance.

    Once the new mortgage is in place the current provider will revoke the charge on the property deed as well as remove themselves as an interested party from any mortgage protection but that all usually happens between them, the new mortgage provider and the solicitor, nothing much to do with mortgage holder themselves.

    It's easily done, I've switched twice and there's not too much hassle involved. Like all outgoings, its worth the effort following the best available and save some serious cash in the long term.

    Banks will not bargain on mortgage rates unless it benefits them, your average mortgageholder will not have any sway here.


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    #19
    wench
    Registered Users Posts: 1,644 ✭✭✭wench


    ILoveYourVibes wrote: »
    They have a form for it.



    https://aib.ie/our-products/mortgages/change-my-mortgage-details

    Worth asking IMO.

    Of course they can refuse. But at least you tried.
    That is for moving among their pre existing rates. It isn't for you to move to a non-standard custom rate.
    As AIB treat new and existing customers the same, they tend to keep people on standard rates for easy admin.


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    #20
    tommythecat
    Registered Users Posts: 721 ✭✭✭tommythecat


    wench wrote: »
    That is for moving among their pre existing rates. It isn't for you to move to a non-standard custom rate.
    As AIB treat new and existing customers the same, they tend to keep people on standard rates for easy admin.

    I rang Aib a few months ago to see if they would match the KBC rate I was thinking of moving to. No interest. I moved my mortgage.

    4kwp South East facing PV System. 5.3kwh Weco battery. South Dublin City.



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    #21
    listermint
    Registered Users Posts: 33,931 ✭✭✭✭listermint


    carltonleon wrote: »
    To change on to one of the LTV mortgages you have to get a valuation of the house done on a Special AIB form with an AIB approved valuer. Costs about €150. Even if your mortgage is €60000 remaining and you have a 6 bedroom house in Malahide and the LTV is obviously less than 50% , they still require the approved valuation report.

    All mortgages are LTV..


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    #22
    Thoie
    Registered Users Posts: 6,344 ✭✭✭Thoie


    ILoveYourVibes wrote: »
    They do it you know.

    I know, but the kind of person (like me, or the OP) that has to ask on an internet forum is not the kind of person they'd do it for. I earn a reasonable wage, have never missed a mortgage payment, didn't over-extend, on good terms with the local branch manager, and am generally a safe bet, and I'm not the kind of person they'd do a "special" rate for.

    The kind of person they'd do it for would have accountants/staff to take care of that kind of thing for them, and wouldn't even be asking.


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    #23
    Nalz
    Registered Users Posts: 16,764 ✭✭✭✭Nalz


    So it's a no go then :-/

    Thank you all for the replies, I do appreciate the info and experiences.


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    #24
    ILoveYourVibes
    Registered Users Posts: 15,182 ✭✭✭✭ILoveYourVibes


    Thoie wrote: »
    I know, but the kind of person (like me, or the OP) that has to ask on an internet forum is not the kind of person they'd do it for. I earn a reasonable wage, have never missed a mortgage payment, didn't over-extend, on good terms with the local branch manager, and am generally a safe bet, and I'm not the kind of person they'd do a "special" rate for.

    The kind of person they'd do it for would have accountants/staff to take care of that kind of thing for them, and wouldn't even be asking.

    They did it for my father ...as far as i am concerned he had a normal mortgage at the time. And he handled everything.

    He had worked in AIB for a no of years though.


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