AIB is dropping its variable rates by 0.25%

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Showmethemoney

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Moderator's note - edited to include extract from AIB press release - Brendan

AIB have announced that they are dropping its variable rates by 0.25%. Good news for some.

I wonder will this be passed on to EBS and haven customers?

http://www.irishexaminer.com/breaki...o-shop-around-as-price-war-on-way-806039.html


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That's a big move, and if it applies to all variable rates it will spark a reaction.
It will bring their 50% LTV significantly under 3%. The lenders who have been competing only on fixed rates are charging over 4%.

Interesting that AIB already had the lowest variable rates, but haven't been able to retain market share so fixed rates and cash back deals have been tempting people.
 
Little brother EBS has an all to familiar model, screw existing customers, so wouldn't hold breath. Likely haven to follow but maybe drag the heels a bit and do it in the new year
 
Showmethemoney said:
I wonder will this be passed on to EBS and haven customers?
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AIB/EBS has a marketing problem. It does not believe in cash back gimmicks but unfortunately for them, many of their potential customers do. Therefore they have to offer these gimmicks if they want a share of that market.

The people who suffer are the existing EBS customers who have to pay for it through not getting rate cuts.

Michael McGrath's bill will ban cash backs and so should sort that out.

AIB and EBS would welcome that aspect of the bill.

Brendan
 
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Excellent news, I have always found aib to be the fairest of a bad bunch. If they'd only allow movement between bands we'd be laughing
 
Here is the full update


These include:

· Standard Variable Rate (SVR) down to 3.15% - Fifth consecutive reduction in three years

· Reduction in AIB LTV variable rates which now start at 2.75%

· A new 7 year fixed rate at 3.5% and reductions in other fixed term mortgage rates as indicated below:

Summary of rate changes
Current New
1 Year Fixed 3.50% 3.20%
2 Year Fixed 3.60% 3.20%
3 Year Fixed 3.65% 3.20%
4 Year Fixed 3.75% 3.30%
5 Year Fixed 3.80% 3.30%
7 Year Fixed n/a 3.50%
SVR + Fixed Reversionary Rate 3.40% 3.15%
LTV <50% 3.10% 2.75%
LTV 50% - <80% 3.30% 2.95%
LTV >80% 3.50% 3.15%



· A 0.25% reduction in our SVR rate, the fifth rate reduction for existing customers in three years. The change represent a saving of €315 a year on a €200,000 mortgage on a 25 year term for a customer on the SVR rate. The cumulative annual saving for the same mortgage from the 5 SVR rate changes is c.€1,500.00

· AIB LTV variable rates have been reduced by 0.35% are now as low as 2.75% resulting in significant savings for our new and existing owner occupier customers.

· This is accompanied by rate reductions across our fixed rates, including a 0.5% reduction on the 5 year fixed rate.


A new 7 year fixed rate at 3.5%

We have added a new 7 year fixed term rate, extending our existing 1 to 5 year fixed rate options available. The 7 year fixed rate is the most competitive on the Irish market at 3.5% and has the same features as our existing fixed year product with the exception of the term. The introduction of an additional term as part of the AIB Fixed Rate Product maximises the choice available and offers our customers, who desire medium term certainty, that option.


Fixed rate changes will come into effect from September 18th 2017, while SVR and LTV changes apply from November 1st 2017.
 
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Brendan Burgess said:
I have edited the first post to include the rate table from the press release

View attachment 2196
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Hi Brendan,

I am currently on AIB's SVR which will drop to 3.15% in November. However I am eligible for their 50% ->80% LTV rate of 2.95%. This looks like a much more attractive rate compared to their previous rate at this point. In your opinion do you see any downside for me in this instance to change from 3.15% SVR to 2.95% LTV??

Regards
 
Big move from AIB.

BOI's 3-year fixed rate, with 3% cash-back, still looks like a better deal to me, particularly at lower LTVs, but the gap is closing.

It will be interesting to see if KBC move quickly to match or beat the AIB variable rate offering.

Great to see competition bringing down mortgage rates.
 
Reflections said:
Hi Brendan,

I am currently on AIB's SVR which will drop to 3.15% in November. However I am eligible for their 50% ->80% LTV rate of 2.95%. This looks like a much more attractive rate compared to their previous rate at this point. In your opinion do you see any downside for me in this instance to change from 3.15% SVR to 2.95% LTV??

Regards
Click to expand...

Moved last year with a NE mortgage. Hoping now we are out of NE so have rang AIB and they have arranged a valuation to be done.
 
celticbhoy32 said:
There's really no thinking needed. Just do it.
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LTV is the only thing stopping me. I switch most bills at every opportunity so it's not a lack of willingess to do it or anything but NE would prevent me. Therefore have ordered a valuation. It will cost 150 euros but would be more than worth it if I can switch. Process has started now however.
 
Sarenco said:
Big move from AIB.

BOI's 3-year fixed rate, with 3% cash-back, still looks like a better deal to me, particularly at lower LTVs, but the gap is closing.

It will be interesting to see if KBC move quickly to match or beat the AIB variable rate offering.

Great to see competition bringing down mortgage rates.
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BOI's 3 year fixed is 3.35% where LTV is >80% and with 3% cashback it would appear to be better.
 
Reflections said:
Hi Brendan,

I am currently on AIB's SVR which will drop to 3.15% in November. However I am eligible for their 50% ->80% LTV rate of 2.95%. This looks like a much more attractive rate compared to their previous rate at this point. In your opinion do you see any downside for me in this instance to change from 3.15% SVR to 2.95% LTV??

Regards
Click to expand...
Hi all,

Just as a follow on from my previous email above, I contacted AIB about what my options are if I were to sign up to their LTV rate of 2.95% and if I decided at a later date that I want to switch back to my SVR or a fixed rate. They sent out some generic letter about what my SVR will be in November and completely ignored my question. I'm not sure if they misunderstood what I was asking or are deliberately ignoring my query. Either way its not a very good response from AIB.
 
Reflections said:
Hi all,

Just as a follow on from my previous email above, I contacted AIB about what my options are if I were to sign up to their LTV rate of 2.95% and if I decided at a later date that I want to switch back to my SVR or a fixed rate. They sent out some generic letter about what my SVR will be in November and completely ignored my question. I'm not sure if they misunderstood what I was asking or are deliberately ignoring my query. Either way its not a very good response from AIB.
Click to expand...

That letter was a standard letter sent to all mortgage holders with their new rates.

AIB website is saying that the SVR has been discontinued for owner occupiers so I doubt you can switch out and switch back into it. You can fix at any point.

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

I got that letter as well, the other letter was one I received previously that was referring to my initial query about switching from the LTV to the SVR or a fixed rate, they completely ignored that query and just gave me this generic response about moving onto the new SVR in November.

Just getting back to my initial query here and please feel free for anyone to answer, is there any reason to stay on AIB's SVR over moving to their LTV rates?
 
Reflections said:
Just getting back to my initial query here and please feel free for anyone to answer, is there any reason to stay on AIB's SVR over moving to their LTV rates?
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Absolutely not, unless you are close to <50% LTV band and want to wait to get onto that band.

Contractually once you move to LTV, you will stay at that band indefinitely. (AIB review request to move on a case by case basis).

You can move to fixed at any point you want.
 
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