AIB the first to cut rates in response to Avant

[Brendan Burgess]

 

[Brendan Burgess]

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

 

[Reflections]

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

 

[Brendan Burgess]

Why don't you call them now and ask them what the break fee is?

In many cases, it will be zero.

Brendan

 

[Reflections]

Hi Brendan,

I'll give them a call in the afternoon and see what response i get. Thanks.

 

[Sarenco]

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.

 

[Brendan Burgess]

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

 

[Sarenco]

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

 

[Jazz01]

I'll give them a call in the afternoon and see what response i get.

If you hear anything back, can you let us know please. I've requested the same and awaiting a response back.