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AIB Rates

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  • 05-05-2023 5:36am
    #1
    DUBLINIRL
    Registered Users Posts: 186 ✭✭


    Why is the APCR lower than the interest rates for the fixed rates mortgages? I thought it was always higher due to additional fees being included and the interest rate being compounded monthly.


    https://aib.ie/our-products/mortgages/mortgage-interest-rates


    Rate typeInterest RatesAPRCCost per €'000

    LTV Var >50% <=80%3.30%3.37%€4.90

    5 Year LTV Fixed >50%<=80%4.20%3.74%€5.38



Comments

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    #2
    cython
    Registered Users Posts: 4,763 ✭✭✭cython


    As far as I can see they only provide an APRC value when you provide an overall mortgage term, so the APRC is probably calculated over the entire term, and with the assumption that you'll roll off the fixed rate onto the (currently) cheaper variable rate for the remaining term of the mortgage. This pulls the APRC down from the fixed rate, even though it will always exceed that variable rate too.



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