AIB announce new mortgage rates

Best offer is the new First Time Buyers rate of just 2.49%, fixed for one year.
Honourable mention is the 2 year fixed rate of 2.8%.

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Owner Occupier Rates

-----------------------------------------------Rate-----------------------------APR over 20 years---------------------Cost per EUR'000 over 20 years
Standard Variable (Discontinued)---------------3.25%---------------------------------3.30%-----------------------------------------EUR 5.67
LTV Variable< =50%---------------------------3.25%---------------------------------3.30%-----------------------------------------EUR 5.67
LTV Variable > 50%< =80%--------------------3.45%---------------------------------3.50%-----------------------------------------EUR 5.77
LTV Variable >80%----------------------------3.65%---------------------------------3.71%-----------------------------------------EUR 5.87
1 Year Fixed (FTB New Bus.)*------------------2.49%--------------------------------3.21%-----------------------------------------EUR 5.29
1 Year Fixed (Existing Bus.)--------------------2.85%---------------------------------3.25%-----------------------------------------EUR 5.47
2 Year Fixed----------------------------------2.80%---------------------------------3.20%-----------------------------------------EUR 5.44
3 Year Fixed----------------------------------3.35%---------------------------------3.33%-----------------------------------------EUR 5.72
4 Year Fixed----------------------------------3.65%---------------------------------3.46%-----------------------------------------EUR 5.87
5 Year Fixed----------------------------------3.90%---------------------------------3.61%-----------------------------------------EUR 6.00
10 Year Fixed---------------------------------4.65%---------------------------------4.43%-----------------------------------------EUR 6.40

That 10 year looks like a good rate for anyone who wants to make long term plans.

jhegarty said:

That 10 year looks like a good rate for anyone who wants to make long term plans.

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It was even better last week when it was 4.45%.
Interesting to see short term rates come down, 5 year rate stay the same and an increase for 10 year rate.

NorfBank said:

Interesting to see short term rates come down, 5 year rate stay the same and an increase for 10 year rate.

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Any good reason for this?
Are they just off-setting the lower short term rates?
Or do they know something we don't?

Why does it say standard variable is discontinued?

It's no longer on offer.

Last week AIB gave 3.25% to all new customers on a variable rate. Now it will depend on loan to value. They have added 0.4% of a margin to customers in the higher loan to value bracket compared to last week.

Another way of looking at it is they have reduced the rate for some in line with the ECB reduction but for others have just passed on a 0.1% cut.

For a while it looked like the banks would pass on all the rate cuts to all variable rate holders (new and old). I doubted this. Just shows how valuable a tracker is.

Interesting that the standard variable is discontinued. First the trackers went, now even the standard variable is no longer available.

Does this mean anyone on the standard variable is forced into get an immediate valuation of their house done (or moved to a fixed rate). Not something people want to do in a falling market.

From AIB's perspective it will give them visibility into the value of a proportion of their loan book. Not much upside for the customer.

The new rates are for new customers only, existing customers remain on the SVR if applicable.

With the standard variable rate discontinued, what would happen in this senario - moving now from the SVR to a fixed rate (say 2yr fixed). After the 2 years, would you be offered the SVR again, or would they at this point look for a valuation and put you on the appropriate new variable rate?

Their calculator does not do 10 year fixed (5 only). Does anyone now of they actually offer this rate?

NorfBank said:

The new rates are for new customers only, existing customers remain on the SVR if applicable.

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Ah I see. Thanks for the clarification.

corkgal said:

Their calculator does not do 10 year fixed (5 only). Does anyone now of they actually offer this rate?

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According to the website they do. It might be just an omission on the calculator application.

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