AIB Fixed Rate Increase

Hi All

Lo and behold AIB have indicated that they will be raising their fixed rate mortgage rates by close of business today.
My problem is i have to fix our mortgage today, i have all the forms and will be heading to the bank shortly.
What would people think is the best period to fix for?
I think myself it would at least a 3 year if not a 5 year as the rate increase is quite significant.
Any thoughts would be much appreciated.

bp

Here are the new rates:

1 Year 4.15%
2 Year 4.65%
3 Year 4.88%
4 Year 5.15%
5 Year 5.35%

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Thanks Norfbank

I called into my local branch and they knew nothing of the change in rates, which looks pretty bad. Anyway stuck with a 4 year for 4.19%.
At least the Irish Times and RTE covered it.

Thats great! Ive been waiting for my forms to fix for over a week now. Phoned them this morning and they said they posted them today. So I guess Ive missed out

Im actually livid. Asked for the forms on Friday 4th March and still havnt received it. Now the rates have gone up.

And when I rang them last Friday message said 'if your query is in relation to Interest rates, please note that AIB has no plans to raise its rates at present'

Sorry to hear that Rustbucket, that so very annoying and costly for you. I dont think there is anything you can you can do but complain to them.

I sent in my request to split my mortgage between fixed and variable on the 1st March and was told it can take up to 10 working days for a decision. I still havent heard back. Will they put me on higher rate now or will it go by the date that I sent in the request as it is 10 working days exactly today?

I'm with Aib, and fixed on the Thursday, the day before they raised their rates on the Friday. Now this was back at the end of the Summer.. Also, i did it by phone, and sent them the written request after.. I'm now fixed at 3.25%. Have you tried organising it by phone?

Sorry for the late post but they would have fixed at the old rates until close of business today. They just need a letter from you, so you would have to present it by hand in a branch before COB. It will take a few weeks to get your letter, but they will fix at the old rate.

irishguy said:

Sorry for the late post but they would have fixed at the old rates until close of business today. They just need a letter from you, so you would have to present it by hand in a branch before COB. It will take a few weeks to get your letter, but they will fix at the old rate.

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Dont quite understand?

Any sign of BOI also raising their fixed rates in the near future?

Just wondering if I have any grounds for complaint and if its worth my while doing so.

Requested a breakout cost and a list of new fixed rates available to me on the morning of 4th March. Was told this would take up to 5 working days.

Spoke to bank 3 times last week to ensure it had been requested and was in process.

Spoke to Bank on Monday and Yesterday to say I still hadnt received it. While on the phone to them yesterday they never mentioned interest rate changes.

Spoke to them again this morning and they ensure me that it has been sent from their office on the 10th March.

However, the breakout cost will be calculated on my rate vs the current rate. The letter will be dated the 10th March so the rate will be the old rate. I asked why the process takes so long for a simple calculation (for the bank) and complained that this has now hampered me making the change that I wanted to as rates have now gone up.

He said the breakout cost should be valid for ten days but the new rates offered in the letter will not be and I may have to go through the process again.

should I bother making an official complaint? How can it take so long to calculate and send a letter and why wouldnt they give me the figure over the phone? Should they be forced to offer me the rate detailed in their letter also? (if i ever receive it)

It really shouldn't take that long. I'm with KBC and when I was on my fixed rate, any time I rang them to ask a breakout rate they were able to give it to me there and then on the phone.

AIB assured as soon as they receive any request it is stamped with the date so if your request was in before yesterday close of business they will take it at the old rate.
I think it is very sneaky releasing this information at midday on Tuesday to the media and to come into effect by COB same day and to top it off not informing their staff!!

@rustbucket - i would be jumping up and down if this had happened to me, i would ring the bank every day and arrange a meeting with your mortgage person and their manager to list your grievances. Remember AIB is now owned by the state, they have responsibilities to their customers whether they like it or not.

noel_c said:

Any sign of BOI also raising their fixed rates in the near future?

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I think you can take it that they will all be doing it over the coming weeks/months.

makes it harder for people to fix now. 5.35% for 5 years compared to 3.29 variable is a tough choice. you would have to bank on the ecb increasing the rates by at least 2% over the next 2 years probably to bring you to just under 5.5%. any thoughts on whether its worth it or not if you can afford to fix now?

I wouldn't fix at the new rate but would still go for something around 4.5% (for 5 years) if I can find it.

5 year fixed at 3.7% still available at PTSB. Loan to Value <50% only. New business only.

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NorfBank said:

5 year fixed at 3.7% still available at PTSB. Loan to Value <50% only. New business only.

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that's a margin of about 0.9% against the 5 year swap rate of about 2.8%(Financial Times) - phenomenal!

Made a huge complaint by phone and writing- They have agreed to offer me the old rates (prior to increase last Tuesday). Have to say, person I dealt with was extremely helpful and completely agreed with my complaint!

rustbucket said:

Made a huge complaint by phone and writing- They have agreed to offer me the old rates (prior to increase last Tuesday). Have to say, person I dealt with was extremely helpful and completely agreed with my complaint!

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ok - so those who shout and threaten get what they want, and the customer who just follows process gets the "standard". All too often this seems to be the way in Irish society. We make rules - such as "rates increase with effect from today", and then if someone gives out enough/threatens/bullies we break the rule. It would be better to have a strong process and clear rules to deal with cases where someone has a deal in progress, as to what is in and what is not, what is a delay due to bank shortcomings...etc. Rustbucket gains here, and others lose out as that income has to be made up by someone else's deal. A bit like all the ECB tracker mortgage customer being subsidised by the rest of the banking franchise.

I would agree with Rustbucket though, 5 working days to get a break-cost is ridiculous. It should be a 5 minute job for someone in a central processing area to calculate and email back to the branch sales guy - and if necessary, to send in a pdf with some standard bumf. Realistically, swap rates could move 0.20% in a week, so even then the break-cost calculation is stale.