Key Post AIB is now officially allowing borrowers a lower rate if they have a lower LTV


Registered User
Hi all,

I also got a letter from aib today offering a 2.75% rate, but was turned down by aib in Nov 17 to reduce the ltv rate to 2.75% from 3.15% at the time, the 3.15% was then reduced by the bank to 2.95% on ltv>80% after for all customers. My ltv at the time of request was 48%. My question is am I entitled to a refund back to the time of request?


Registered User
Got our yearly mortgage letter from AIB today which summaries interest paid in previous year. First time it advised about moving to lower LTV rate. Previous letters said couldn’t move between bands. Going to move from 3.15% to 2.95% before we start switching in a few months time based on advice in the switchers forum (waiting for 6months of good statements to build up)


Frequent Poster
AIB website, and rate change forms have been updated to reflect the ability to move LTV bands:

"As of from the 17th December 2018 you may avail of a new Loan to Value (LTV) Rate. To avail of a (LTV) rate you will need
to provide an up to date valuation report completed by an AIB approved valuer."

Looks like 14% of all mortgage drawdowns in 2018 were from switchers, so thus looks like a competition driven move.

Some press coverage:
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Frequent Poster
Thanks a million for the updates on this all. Those links are really useful RedOnion.

I'll be organising a valuation as soon as I can and moving to the 2.75% rate hopefully!


Brendan Burgess

This is great news.

I am sure that the only reason that they have done this is because at an Oireachtas Finance Committee meeting on Tuesday 26th September 2017 , Michael McGrath really pushed them on the issue and Bernard Byrne the CEO mistakenly told him that they did allow it. That forced them to change their policy rather than admit their error.

Although this exchange took place over a year ago, it took them a year to formally changed their policy after many customers got a reduction by quoting this exchange at the Finance Committee.

Deputy Michael McGrath: On another point of detail, is it possible for AIB customers
to move down the loan to value band and benefit from a reduced interest rate, in line with an
improving loan to value ratio they might have? Is it possible for customers to benefit from getting
a new house valuation from a panel of valuers nominated by the bank?

Is it possible for customers who took out an original loan at a 90% loan to value ratio, and who now have a ratio at less than 50%, to benefit from the 2.75% rate if they submit a valuation?

Mr. Bernard Byrne: Yes, and we write to all customers annually and advise them of this process, but we do need valuation.

Deputy Michael McGrath: That is fine, and is it the case that they are not limited to one such reduction? Irrespective of whether they started with a standard variable rate or a loan to value mortgage, is it the case that if they now have a much improved loan to value ratio they can benefit from the reduction?

Mr. Bernard Byrne: I will ask my colleague to answer this.

Mr. Robert Mulhall: There is no such restriction, but we make the loan to value offer at thepoint of origination and it is worth noting we do not evaluate it the other way, whereby if the market moves in the opposite direction we do not move people in that direction.

Deputy Michael McGrath: There is a slight contradiction between what the two witnesseshave said. To clarify it absolutely, if somebody gets and submits to AIB a valuation on his or her home from an approved panel of valuers that shows an improved loan to value, which brings the person into a lower band with a lower interest rate, that person will be given that interest rate.

Mr. Robert Mulhall: Yes.

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New Member
Does anyone know if this also applies to Haven given they are part of the AIB group? Investigating switching mortgage at the moment. Currently with Haven on a variable of 3.09% with approx. €245,000 left (waiting for updated statement from Haven). House value approx €420,000.