ECB cuts interest rates by 0.5 points


The AIB variable rate??? This is currently 3.75% and will reduce to 3.25% with the latest ECB cut...
 
Apologies, got a bit mixed up yesterday....was working everything from memory!

After doing a bit of snooping, it turns out the KBC interest rate (before ECB cut) is 4.24%. This means with the latest cut, my new interest rate will be 3.99%. This will save me €52.92 a month.....not to be sniffed at.

But if I move to AIB, I'll be dropping from 4.24% (current KBC rate) to 3.25% (new AIB rate), I'll be saving approx. €210 per month!
I suppose that's not really comparing apples with apples, so if we take the new KBC rate (3.99%) against the new AIB rate (3.25%), I'll be saving €156 per month!

Tis a no brainer really.

P.S. All the above figures are just interest repayments on a €254k mortgage, and I think they're correct. If they're wrong, I'd like to know what the correct figures are.
 



But.... it will cost you at least a grand to switch to AIB.
Halifax might be worth looking at too - they have good rates and pay towards legal fees for switchers
Also - will the other banks accept you? How much is the value of the house?
 
At savings of 210 per month, wouldn't you break even on that after 5 months though? The 1000 euro switching fee that is.
 
Just to let you know that I have 2 friends who are switching their mortgages over to AIB and they are getting approx €1200.00 towards their legal fees. So make sure you ask because then it is really worth your while.
 
irishlinks said:
Also - will the other banks accept you?
Click to expand...

Why? What's wrong with me?

Seriously though, we should be ok. The wife's job (with a German Engineering Company) is as safe as can be in the current climate. I have one of those semi-state "job for life" things .
Our house is standing us €250k, and it's been valued at €320k...would probably only get €300k in this day and age .
I was onto our mortgage broker the other day, and after we sent in our salary certs and stuff, we got "pre-approved" for a mortgage amount over double our current mortgage.
And as a final cherry on the icing on the cake, our solicitor is a friend of ours, and they'll do the donkey work for <€500 .

So it's pretty much a no brainer for me. If KBC had reduced by the full 0.5%, I wouldn't be bothered.

Actually, can banks be haggled with? I'm thinking that when I ring up to tell them I'm leaving because of the 0.25% reduction, is there a chance that they'll offer me the 0.5%? Maybe those who ask will get it, and those that don't, won't?

@ Citygirl : Did your friends go direct to AIB, or did they go through a broker?
 
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Were the rate reductions to come into effect today?
I just checked the AIB website and the variable rate is still quoted as 3.75%....

My next mortgage repayment will be debited on the 25th of January -
Can someone tell me if the new reduced rate 3.25% will be applied to this or will I have to wait till next month??
 
Fair play to NIB, the ECB rate comes into effect today, they must pass this on within 3 working days for trackers so they could have dragged it out until next Monday.

I can see online the rate applying to my tracker has reduced to 2.5% today.
 
PTSB will be passing on the latest 0.5% cut to Variable and Tracker rates on the 13th of February. Repayments won't change until March.

I don't know about this 3 days requirement mentioned for NIB. I thought it was 30. Or can the banks set their own?
 
Taxi Driver said:
I don't know about this 3 days requirement mentioned for NIB. I thought it was 30. Or can the banks set their own?
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Don’t know about PTSB but my terms and conditions state the new rate will be applied within 3 working days.
 
Actually, can banks be haggled with? I'm thinking that when I ring up to tell them I'm leaving because of the 0.25% reduction, is there a chance that they'll offer me the 0.5%? Maybe those who ask will get it, and those that don't, won't?

We did this I think it was a year ago, ask to speak to retentions dept, we got lower rate than any advertised by the bank and saved hassle of moving.
 
AIB website and my online banking is still quoting 3.75% as the variable rate.....???
 


I guess it depends on whether you can switch mortgage as it is not was easy as it once was so they could call your bluff.
 
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