Calling AIB customers who fixed before the latest fixed rate cuts in September 2020

Ok, your break fee works out at 0.3% per annum.

If you can switch from 3.5% to the 2.25% rate, you'll save 15,000 in interest over the next 5 years. Net savings 11,000
In that context I wouldn't be calling the 4k break fee extortionate.

I'd be getting my hands on 4k any way possible! Or even ask AIB if they will capitalise it for you (add to balance). I'm not sure what their policy is on that.

4k is a very low break fee in context of what's happened with market rates since you fixed, so you're still benefitting from AIBs calculation methodology, just their 7 year rate dropped slightly since you fixed.
 
RedOnion said:
Ok, your break fee works out at 0.3% per annum.

If you can switch from 3.5% to the 2.25% rate, you'll save 15,000 in interest over the next 5 years. Net savings 11,000
In that context I wouldn't be calling the 4k break fee extortionate.

I'd be getting my hands on 4k any way possible! Or even ask AIB if they will capitalise it for you (add to balance). I'm not sure what their policy is on that.

4k is a very low break fee in context of what's happened with market rates since you fixed, so you're still benefitting from AIBs calculation methodology, just their 7 year rate dropped slightly since you fixed.
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Thanks for those calculations.
Is there a way to get the fee reduced?

In the attached article, AIB reduced breakage fees when they got push back from clients.
 
dignanl said:
Is there a way to get the fee reduced?

In the attached article, AIB reduced breakage fees when they got push back from clients.
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No, I'm afraid not. You're already getting a good deal.

The cases in the article were around a separate issue that we helped a few customers challenge, and AIB have since amended their methodology.
 
selfbuilder said:
I see AIB have dropped their Green rates again. I must request another break quote so I can fix again at the lower rate.
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Good spot.
In theory there should be no break fee, since their 4 year rate is higher than your current rate. Let us know how you get on!
 
selfbuilder said:
I see AIB have dropped their Green rates again. I must request another break quote so I can fix again at the lower rate.
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Great news - we are currently renovating to bring our BER to at least B3 so I will definitely switch when finished here.
 
RedOnion said:
Good spot.
In theory there should be no break fee, since their 4 year rate is higher than your current rate. Let us know how you get on!
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Any luck with this? Just spotted an ad in a bus stop today that the Green Mortgage had dropped again and thought I should investigate.
 
pablo57 said:
Any luck with this? Just spotted an ad in a bus stop today that the Green Mortgage had dropped again and thought I should investigate.
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Hi,
Call them and ask for a break fee. It should be zero. If not I'd be interested in having a look at their calculations.

There was another poster that switched to the lower rate but I can't find the post.

I don't have a mortgage myself to check.
 
pablo57 said:
Any luck with this? Just spotted an ad in a bus stop today that the Green Mortgage had dropped again and thought I should investigate.
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Hi, I got the letter from AIB with the break costs of €0. It took over a week for the letter to arrive. They couldn't email it to me and had to be posted to my address. I scanned the request to break and fix again at the lower rate to the AIB mortgage email address. I haven't heard anything since. I presume that they got the email ok. They have to receive the request to break out of the fixed rate within 5 working days of the date on their letter which is far too short as by the time the letter comes in the post the 5 days have nearly passed. I'll know for sure by the end of the month when the mortgage comes out of the account.

Hope this helps.
 
selfbuilder said:
Hi, I got the letter from AIB with the break costs of €0. It took over a week for the letter to arrive. They couldn't email it to me and had to be posted to my address. I scanned the request to break and fix again at the lower rate to the AIB mortgage email address. I haven't heard anything since. I presume that they got the email ok. They have to receive the request to break out of the fixed rate within 5 working days of the date on their letter which is far too short as by the time the letter comes in the post the 5 days have nearly passed. I'll know for sure by the end of the month when the mortgage comes out of the account.

Hope this helps.
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Thanks both, I'll contact them now. We paid a break fee in January 2020 to move from fixed 3.3% to the new Green 2.5%, then when I noticed in May that it had gone down to 2.45% they did it for free. Can hardly believe this new product has shifted 3 times in a year, but shows you really have to keep your eye on things. Getting down to 2.25% would be very nice, particularly with no additional charge.
 
pablo57 said:
Thanks both, I'll contact them now. We paid a break fee in January 2020 to move from fixed 3.3% to the new Green 2.5%, then when I noticed in May that it had gone down to 2.45% they did it for free. Can hardly believe this new product has shifted 3 times in a year, but shows you really have to keep your eye on things. Getting down to 2.25% would be very nice, particularly with no additional charge.
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Letter has finally come through, confirming no breakage cost to switch to new, lower rate. :)
 
@pablo57 regarding:
pablo57 said:
Letter has finally come through, confirming no breakage cost to switch to new, lower rate
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There is a 2.1% 5 year green rate that you could move to - should be detailed in that letter you received from AIB. I've just recently moved to that rate.
 
pablo57 said:
I'm still above 80% LTV so 2.25% is the best I can get, I believe.
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If you get below 80% LTV, break again and refix. ;)

I haven't triple checked their contract, but you should be able to break free of charge, unless the reduce their rates further.
 
RedOnion said:
If you get below 80% LTV, break again and refix. ;)

I haven't triple checked their contract, but you should be able to break free of charge, unless the reduce their rates further.
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Good point, I'm not too far away. Have contacted a valuer on the AIB list to get that process sorted and will then know whether I need to make a chunk payment to get under 80%.

But yes, as far as I know I can do all sorts at the moment: change rates, pay off a chunk earlier, pay extra, even leave altogether and it should be free.
 
I just completed a switch to AIB, was going to fix for 5 years @2.35%. LTV is 55%. I will be in a position to get it below 50% by July and will hopefully have B3 rating by same due to changes I am making. Should I fix at 2.35% and then try and break in July/August to pay off an amount and get the 2.1%?
 
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If you've completed the switch does that not mean you've fixed already at 2.35%?

If you're doing work, you'll obviously be getting a new BER report done, and then you'll need to get a valuation if you're applying for a new LTV range. Presumably a stronger BER rating will positively affect the valuation too. Once you get the new valuation you'll know if you need to pay any extra to be below the new 50%, but if nothing changes in the AIB rates until then you should be fine to get the 2.1% at that point if you have the B3.
 
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