Overpayment / re-fix flexibility of AIB's green 5yr fixed rate (and some other rates)

Ah yes AIBs free banking and also them taking care of the deeds are two more reasons not to reduce the term but the monthly repayments.
 
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Did they ask you to do a valuation? Normally they won't unless you have the valuation in the past.

Sent mine yesterday to break out from my fix yesterday to "restart" the clock. Hopefully no rate increase between now and when it comes through.
 
BigPineapple said:
Did they ask you to do a valuation? Normally they won't unless you have the valuation in the past.

Sent mine yesterday to break out from my fix yesterday to "restart" the clock. Hopefully no rate increase between now and when it comes through.
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Yes we had to do a valuation as were moving from 50-80 LTV to less than 50 LTV. It's wonderful to have 2.1 for the next five years. Hopefully your "restart the clock" works. It took a week for us so you should be similar.
 
BigPineapple said:
Did they ask you to do a valuation? Normally they won't unless you have the valuation in the past.

Sent mine yesterday to break out from my fix yesterday to "restart" the clock. Hopefully no rate increase between now and when it comes through.
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I would suggest you call AIB today and ask if they will honor your request as they are increasing their rates now by 0.5%.
 
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Hi Merowig

Are you transferring from AIB current account to AIB mortgage? We have a AIB mortgage but haven't switched current account yet. I just sent €200 today by bank transfer from KBC to AIB mortgage to see what happens. I didn't bother asking for a break fee as it should be zero.

Hopefully it's as you described in another post and reduces the monthly payment while keeping the term.
I'm also going to change my payments to fortnightly instead of monthly. Myself and my wife are paid fortnightly on the same day so will choose that day for payments.
 
I heard on radio that AIB are increasing their fixed rate. I would request break fee letter to avoid any penalties.
 
masterboy123 said:
I heard on radio that AIB are increasing their fixed rate. I would request break fee letter to avoid any penalties.
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But them increasing their rate means there will be no break fee.

Sorry, I should have said we have fixed for 5 years at 2.1% just to make it clear.

They don't have a rate near that now so there will be no fee.
 
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Yes I have an AIB current account - free banking for AIB mortgage holders.
 
masterboy123 said:
I heard on radio that AIB are increasing their fixed rate. I would request break fee letter to avoid any penalties.
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There will be no penalties!
Still the Quirk remains and break fee will be zero for existing 3 and 5 years mortgages.
And if they increase all their fixed rates by 0.5% this quirk will remain as well for new mortgages of 3 years and 5 years duration.
 
Merowig said:
I would suggest you call AIB today and ask if they will honor your request as they are increasing their rates now by 0.5%.
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Called them (twice).

First guy I spoke to wasn't too helpful. He keep telling me that if I didn't request a break charge, they don't process the break request (despite me telling him I have worked it out and break charge is zero using their own formula). I took that at face value but then on second thought after I hung up, I started to have doubt if he is telling me that there is a charge.



Called again and spoke to another rep, surprisingly he told me they have processed it yesterday (Submitted on Wednesday) unfortunately I signed it using digital signature which wasn't accepted (The physical letter to confirm that it wasn't accepted was on the way to me but he can see it in the system).

He told me to resend it again with a hand written signature and make reference to the submission I made on Wednesday and it will be honoured. Done that so now hoping for the best (Just as precaution, I did also add the note to state that if what he tells me is not correct then don't proceed). Will see how it goes.
 
Merowig said:
I would suggest you call AIB today and ask if they will honor your request as they are increasing their rates now by 0.5%.
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You mentioned in the other thread that you re-fixed a few times recently, did you have to request for break charge each time, out of interest?

Or was it a straight email in with the form filled only?
 
BigPineapple said:
You mentioned in the other thread that you re-fixed a few times recently, did you have to request for break charge each time, out of interest?

Or was it a straight email in with the form filled only?
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nope I did not request the break fee - I did complete the form and handed it over to the branch - I also did made pictures of all pages and sent it as a pdf to their home mortgages address
 
Merowig said:
nope I did not request the break fee - I did complete the form and handed it over to the branch - I also did made pictures of all pages and sent it as a pdf to their home mortgages address
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Interesting, I submitted the form to refix a few weeks ago and nothing happened.
So I rang Friday and was told it wouldn't be processed until I requested the break fee, and if they issued it now it would be refixed on the new rate.
 
dloob said:
Interesting, I submitted the form to refix a few weeks ago and nothing happened.
So I rang Friday and was told it wouldn't be processed until I requested the break fee, and if they issued it now it would be refixed on the new rate.
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That is interesting and it arguably contradicts what is on AIB's info page about the rate change:

You asked AIB to re-fix a few weeks ago, well before 14th October. Either tell them to ignore the re-fix request or complain and point them towards their own info page.

What rate are you on at the moment?
 
I'm on 2.1% with about 4 years left so this was an attempt to get a few more months at the end of it.
I told them to leave it alone now.
 
dloob said:
Interesting, I submitted the form to refix a few weeks ago and nothing happened.
So I rang Friday and was told it wouldn't be processed until I requested the break fee, and if they issued it now it would be refixed on the new rate.
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My understanding is that requesting the breakfee is not necessary for refixing - I did refix twice and it was never asked.. Ask them to show it to you where this "condition" is stipulated in case they continue to insist on it. I would push to have it refixed at the old rate.
Might be you just had bad luck and got an incompetent agent on the phone.
 
Hi can i ask, if you were to overpay now will that render you having to refix at the higher rate??
or can you overpay (pay the breakfee if any) an stay on same rate you are on.
 
help999 said:
Hi can i ask, if you were to overpay now will that render you having to refix at the higher rate??
or can you overpay (pay the breakfee if any) an stay on same rate you are on.
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Making an overpayment, no matter how large, will not result in you losing your fixed interest rate – i.e., you do not have to break out of your fixed rate to make an overpayment (but you may have to pay a penalty to make the overpayment).
 
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Paul F said:
Making an overpayment, no matter how large, will not result in you losing your fixed interest rate, i.e., you do not have to break out of your fixed rate to make an overpayment (but you may have to pay a penalty to make the overpayment).
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Thanks paul. Understood. Cheers
 
Update:
I have received a letter from AIB acknowledging the lump sum payment and the new monthly repayments. There is a reduction of €250 per month, we are very happy with this movie and we will save €3000 annually on monthly repayments plus the associated interest!

Thank you all with a special thanks to @Paul F
 
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