AIB the first to cut rates in response to Avant

Brendan Burgess

Founder
Messages
51,906
4962
 
So AIB has finally realised that in a country where it's not possible to repossess a property, the fixed rates should be lower for lower LTV mortgages!

They price the difference in risk at .2% between a 40% mortgage and a 90% mortgage.

Brendan
 
So AIB has finally realised that in a country where it's not possible to repossess a property, the fixed rates should be lower for lower LTV mortgages!

They price the difference in risk at .2% between a 40% mortgage and a 90% mortgage.

Brendan

Hi Brendan,

I fixed for 3 years at 2.55% earlier this year. Would i have a leg to stand on to break from that and ask AIB to put me on the new 3 year rate of 2.45%?
Regards
 
It's mad to think that AIB's cheapest 7-year fixed rate is still a full 1% higher than Avant's best rate.

That's a fairly tame response.
 
Sarenco

Have you any idea what rate AIB or Avant Money could raise 7 year money at?

If they securitised a batch of 60% LTV mortgages , I suspect that it could be close to zero at this stage.

Brendan
 
I'm not sure Brendan but AIB's cost of funds would certainly be very low at this stage.
 
Back
Top