Sorry for the shock headline and it's not meant to mislead but in the past 24hours I've been severely rattled by my AIB mortgage and am still shaking my head in disbelief.
Yesterday, I noticed the Interest Only mortgage we've literally started paying 2 months ago shot up by €140.
I thought and contacted the bank. They informed me that it was due to the Sept 3rd increase of .50% to VAR mortgage holders. A little taken aback by the scale of the figure I asked her to recalculate and she says everything is in order!!
Now this morning after both myself and wife spend the night thinking where we gonna generate the money from, I wake up to news that they're going for another .50% increase... this will mean a €280 p/m increase for us!!
So, our mortgage is for 360k and was taken out over 35 yr period.
We started the Interest Only payments this July.
Before we started we were paying €1,444 p/m @ 3.25% fixed.
Once the IO kicked in, it reduced to €935.16 @ 3.25 fixed%
The €863.07 pm @ 3.0% STDVAR
Before jumping up to €1,008.52 this month on account of the rate increase.
I appreciate that we're still paying the interest and therefore we're gonna see fluctuations such as this, but I asked the mortgage dept to calculate what we will be paying once we go back to full mortgage and she says €1,464 pm
a whole €20 more than what were on!!
What I can't get my head around is various websites stating (guestimating) that a .50% increase on a mortgage worth 1k would amount to €15 per month hike. With this in mind, would our mortgae not rise accordingly, i.e. €50/60?!
or does it depend on the length of the mortgage?!
Can anyone shed any light on this for me... I feel like I've been given a PillarBank punch in the face in the past 24 hours and am wondering how on earth has this Interest Only deal jumped up to €280 extra per month?!!
No point in going on the scheme @ this rate....
Yesterday, I noticed the Interest Only mortgage we've literally started paying 2 months ago shot up by €140.
I thought and contacted the bank. They informed me that it was due to the Sept 3rd increase of .50% to VAR mortgage holders. A little taken aback by the scale of the figure I asked her to recalculate and she says everything is in order!!
Now this morning after both myself and wife spend the night thinking where we gonna generate the money from, I wake up to news that they're going for another .50% increase... this will mean a €280 p/m increase for us!!
So, our mortgage is for 360k and was taken out over 35 yr period.
We started the Interest Only payments this July.
Before we started we were paying €1,444 p/m @ 3.25% fixed.
Once the IO kicked in, it reduced to €935.16 @ 3.25 fixed%
The €863.07 pm @ 3.0% STDVAR
Before jumping up to €1,008.52 this month on account of the rate increase.
I appreciate that we're still paying the interest and therefore we're gonna see fluctuations such as this, but I asked the mortgage dept to calculate what we will be paying once we go back to full mortgage and she says €1,464 pm
a whole €20 more than what were on!!
What I can't get my head around is various websites stating (guestimating) that a .50% increase on a mortgage worth 1k would amount to €15 per month hike. With this in mind, would our mortgae not rise accordingly, i.e. €50/60?!
or does it depend on the length of the mortgage?!
Can anyone shed any light on this for me... I feel like I've been given a PillarBank punch in the face in the past 24 hours and am wondering how on earth has this Interest Only deal jumped up to €280 extra per month?!!
No point in going on the scheme @ this rate....
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