AIB or Credit Union for Mortgage

L

lmd

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Mortgage for approx 285k over 10 years.

Capital Credit Union variable rate is 3.85. AIB is 3.75. I think the difference over the term would be an extra c 1,600 in interest if go with Credit Union so not huge.

Is either Credit Union or AIB a better choice? I note from key Post by Brendan that AIB is a good lender but have approval from Credit Union in place and wondering whether to apply with AIB (prefer not to go through another mortgage application just because of the paperwbut if it is advisable then would obviously do it).

Any particular benefits in Credit Union mortgage over one of the main banks?

Thanks.
 
I suspect that AIB might be more flexible in the long-run. What if you need to borrow more to build an extension? The Credit Unions can lend only 7.5% of their assets and might tell you "Sorry, we would love to give you the money but the Central Bank won't allow it". That is much less likely to happen to AIB.

AIB probably has more options if you want to fix the rate at some stage.
 
lmd said:
Thanks Sue Ellen I'm thinking our Broker would be maybe a little biased as no commission if we go with Credit Union.
Click to expand...

Agree fully with you. You have loan approval so no need to got to a broker who will probably suggest ptsb or BoI so that you get cash back.
 
Not the most significant reason to go with AIB but free banking might be worth something to the OP.

In terms of broadening the view while 10 years is not an insignificant length of time, the shorter term would mean a mortgage with a cash back option could be relatively more beneficial than in other cases.
 
Reactions: lmd
Thanks Brendan that's a very valid point as we previously had a home loan for 80k from credit union. If we go with them we couldn't use them for home loan if needed for extension in future.
 
My personal recent experience with AIB Mortgages is the following:

1. Mortgage approval in principal process is very slick and quick.
2. Once you've gone sale agreed then the fun starts as Mortgage draw down can last > 4months. AIB are slow to review documentation submitted, slow to respond and slow to request additional information. Additional information demands can be nit-picking and what one would consider as irrelevant but they seem to come from "more than my jobs worth" sticklers. In my personal case they were insisting on a credit rating report from Germany (I was a past resident of Germany but left over twenty years ago !), then wanted the German credit rating translated into English, then wanted dormant German account statements, then wanted the same translated into English, then were extremly slow to respond to my reasonable request for waiving the requirement for mortgage protection insurance (not required by law for over 50's) etc. The purchase nearly fell through due to AIBs delays. Every time you submit a document they request it can take up to a week for it to be reviewed and for them then to come back with additional queries.
3. Once you draw down things are great and the free banking is a nice little extra bonus.
 
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I have actually just read a post on a FB house buyers group from someone saying the exact same thing re them taking so long on everything. Thanks for the heads up.
 
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