AIB green mortgage rate - 5 year fixed 2.5% - all LTVs

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coolaboola12

Registered User
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Hi All

I am currently paying 3.15% variable that is 3.21% APRC as my mortgage is > 80% LTV

AIB have just launched a 5 year fixed rate of 2.5% with an APRC of 2.95%

While 3.15 to 2.5 is a nice drop and i would be interested, what is the APRC and is this the real figure i should look at ?

Thanks
 
The correct rate for evaluating a fixed rate loan is the fixed rate itself and not the APRC.

The APRC is the Annual Percentage Rate and is misleading for fixed rate loans as it incorporates the variable rates which will apply after the fixed rate period is over.

What is your Loan to Value?

Brendan
 
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  • Green five year fixed mortgage rate of 2.5%

AIB is backing its customers by making a competitive green five year fixed rate mortgage available. The rate is available to new and existing AIB private dwelling house (PDH) mortgage customers whose property has a building energy rating (BER) between A1 and B3. The green mortgage will have a fixed rate of 2.5 per cent for five years.

Customers who meet the qualifying criteria will be able to apply for the green five year fixed rate either as part of their mortgage application (new customers) or via the mortgage rate amendment process (existing customers) from November 4th 2019.
 
There doesn't seem to be a Loan to Value criterion.

So this is good value for someone with a high Loan to Value - e.g. a 90% mortgage.

Ulster Bank has the same rate for 5 years but you need a mortgage in excess of €500k.
Ulster Bank allows you fix for two years at 2.3% and get €1,500 cash back.

Overall this is a good deal, because after the fixed rate is up, it is likely that AIB will have competitive variable rates. Other banks force you to fix again to get competitive rates.

And AIB's new way of calculating breakage costs since July has gone from being the worst in Ireland to the best in Ireland.

Brendan
 
Brendan Burgess said:
The correct rate for evaluating a fixed rate loan is the fixed rate itself and not the APRC.

The APRC is the Annual Percentage Rate and is misleading for fixed rate loans as it incorporates the variable rates which will apply after the fixed rate period is over.

What is your Loan to Value?

Brendan
Click to expand...

LTV is around 85% so we are a while away from being able to get to the 2.95% which is available on the < 80% LTV

Also we are part of the prevailing rate cohort so maybe i should wait for ombudsmans decision on that first, if i moved to a fixed rate and ombudsman voted in our favour would they charge me a fixed rate penalty to get out of fixed and on to tracker ?
 
coolaboola12 said:
Also we are part of the prevailing rate cohort so maybe i should wait for ombudsmans decision on that first, if i moved to a fixed rate and ombudsman voted in our favour would they charge me a fixed rate penalty to get out of fixed and on to tracker ?
Click to expand...

Hi coola

No need to wait.

If we lose the prevailing rate issue, you will be better off having switched earlier.

If we win the prevailing rate issue, the rate will be less than 2.5% , so you will get compensation on the difference between what tracker margin you should have been on and 2.5%. So you won't lose out at all.

And while you might be able to get a better rate than 2.5% elsewhere, it's not worth the hassle of switching and switching back to AIB if we win.

Brendan
 
Brendan Burgess said:
Hi coola

No need to wait.

If we lose the prevailing rate issue, you will be better off having switched earlier.

If we win the prevailing rate issue, the rate will be less than 2.5% , so you will get compensation on the difference between what tracker margin you should have been on and 2.5%. So you won't lose out at all.

And while you might be able to get a better rate than 2.5% elsewhere, it's not worth the hassle of switching and switching back to AIB if we win.

Brendan
Click to expand...

Ok thanks, yeah i dont want to switch from AIB. Aside from the prevailing rate i find them excellent to deal with and they have the best rates more or less
 
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