Change of fixed interest rates

The general consensus here 2pack is thats the OP should have been made aware of the 45 day expiry by AIB verbally, AIB did however make OP aware of same in the loan conditions. if said condition had been pointed out to OP by either AIB or solicitor, than OP would have been giving the oppurtunity to shop around, and avail of a loan offer with another mortgage lender who does have such an expiry. Most lenders will give you an expiry of a certain number of days to drawdown your mortgage AFTER a rate increase... e.g you have been approved at 2.95% , rates have now increased so you have 45 days from date of increase in rates to drawdown the mortgage to avail of the lower rate of 2.95%. So in agreement with you the AIB loan offer was not a particular good offer...

it is for this reason that it is of the utmost importance to fully read and understand the loan conditions before accepting and drawing down the mortgage.

(cross post with previous two posts)
 
Molly said:
it is for this reason that it is of the utmost importance to fully read and understand the loan conditions before accepting and drawing down the mortgage.
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Yes Molly , you are right :D
 
Shanneah said:
Last January I was shopping around for mortgages and at the time AIB were the most competitive offering me a fixed rate of 2.94% on my mortgage for the first year. I told the bank that I wouldn't be drawing down the mortgage until June but they assured me that I wouldn't get a better rate. I accepted and signed the offer in January and drew down the mortgage at the beginning of June. I then received a letter from the bank alerting me to my new fixed interest rate of 3.95%.
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Hi Shanneah,

This actually happened to me too. had a rate of 3.19%. Letter of offer was dated 11th april. there was one ECB rate increase since then (.25% June 6th or so) so i was expecting our fxd rate to go up by .25% also as our 45 day period had also elapsed. When i contacted bank last week (im due to draw down in 2 weeks) they notified me that rate had gone up to 3.95%.

not great at all.

They are offering a 1 year discounted tracker that is 3.35% at the moment. i decided to go with this.
 
That's really interesting because when I complained about this issue, they said they would try their best to find the best possible rate at that time. The best she could find on the 20th of June was a variable tracker rate of 3.75%. Apparently there is a new discounted first time buyer rate available at the moment of a much lower rate but because I signed the offer in January I am not eligble.
 
A creditworthy FTB (and sometimes second time buyers under 'new business discount' ) normally gets a discount tracker rate or discount variable or discount fix.

A Non FTB pays the headline rate

You got no discount and AIB have their sale.
 
Shanneah said:
That's really interesting because when I complained about this issue, they said they would try their best to find the best possible rate at that time. The best she could find on the 20th of June was a variable tracker rate of 3.75%. Apparently there is a new discounted first time buyer rate available at the moment of a much lower rate but because I signed the offer in January I am not eligble.
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I thought competition in the mortgage market had made financial institutions more customer orientated. Obviously AIB haven't worked it out yet. Kick up a fuss Shanneah. There is no logical reason why they can't offer you the cheaper variable rate that is on offer to other but new FTB's. Don't take that nonsense.
 
I'm just so mesmerised now. I've kicked up a fuss with the advisor and I've even sent my Dad in to the manager (as he is a far more valued customer than me) and the manager was apolegetic but didn't think he could do much. I will go back tomorrow however, and see why exactly they can't give me the discounted rate.
 
I was given the same story about having applied before the date this new offer came out. I have been a mortgage customer of theirs for years and looking to trade up, told them I was happy with their service but if they didn't give me this rate I would have no hesitation going elsewhere. I got offered the rate pretty quickly. Make sure you're dealing with someone senior enough to make your case to the home mortgages section.
 
Sunny said:
But if fixed rates were cheaper when she came to drawdown would be entitled to the cheaper rate if she had already agreed to the higher rate??? The answer is yes in reality but no if we follow your argument! It works both ways.
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No. I think you'll find the bank would have stuck to the original agreement if rates had lowered in the meantime.
 
I eventually got talking to the manager after River's post and explained that he had been given the FTB discount tracker rate and was in the same situation as me. The manager couldn't understand why the financial advisor had refused me in the first place, he said I was eligble. Thanks to all your advise, I at least now am guaranteed the discount tracker rate of 3.35%.
 
No, this was just a phone conversation this evening. I'm keeping my fingers and toes crossed that I'll get it in writing tomorrow.
 
liteweight said:
No. I think you'll find the bank would have stuck to the original agreement if rates had lowered in the meantime.
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Is this fact? Or just opinion?
 
Shanneah said:
I at least now am guaranteed the discount tracker rate of 3.35%.
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Sounds just about right to me. Congrats and well wear the new home.
 
Its thanks to you all. If I hadn't started using this forum I would still would be on the 3.95% interest rate and wouldn't have had the confidence to fight my corner.
 
Yes, fair play for getting a good result.

I would still tend to punish them for the shoddy service by walking after the first year if there is a better deal to be has elsewhere.
 
Shanneah said:
That's really interesting because when I complained about this issue, they said they would try their best to find the best possible rate at that time. The best she could find on the 20th of June was a variable tracker rate of 3.75%. Apparently there is a new discounted first time buyer rate available at the moment of a much lower rate but because I signed the offer in January I am not eligble.
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Hi Shanneah,

i originally signed in April also but when i rang and found out fixed had gone up, i made it clear i was unhappy and then i was called back and they said i could avail of discounted first time buyer tracker.

I would ring them again and push the issue
 
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