AIB We have been on too high an LTV as a result of the overcharging

[Megafan]

just a quick reminder to get your Loan to Value variable rate changed if applicable.

We got our house revalued last week and that along with the write down brings us from 3.15 to 2.75 so a nice extra little bonus

LTV Variable >80%	3.15%
LTV Variable >50%<=80%	2.95%
LTV Variable <=50%	2.75%

Do you think that possibly AIB have now time stamped the principal reduction from the 1st break of Fixed rate? Given that we are getting interest refunds (as far as I aware) reflecting every interest rate we have paid to date post breaking our 1st fixed rate (using October19's schedule)?

If that was the case, theoretically, then we all may have hit our LTV 80% a couple of years also and missed out on LTV discounts on interest rates? This whole point is completely theoretical (possibly nonsensical!) seeing as the principal reduction only happened today but it just something that struck me (though I admit I should possibly have not voiced this point either!).

Anyway, if it is crazy, please feel free to say it's crazy.

 

[Brendan Burgess]

A very interesting point.

However, AIB did not allow existing customers whose LTV had reduced to move to a lower LTV band until about 18 months ago.

Key Post - AIB is now officially allowing borrowers a lower rate if they have a lower LTV

Hi all, I also got a letter from aib today offering a 2.75% rate, but was turned down by aib in Nov 17 to reduce the ltv rate to 2.75% from 3.15% at the time, the 3.15% was then reduced by the bank to 2.95% on ltv>80% after for all customers. My ltv at the time of request was 48%. My...

www.askaboutmoney.com

So it wouldn't make that much of a difference.

Brendan

 

[Brendan Burgess]

So what difference would it make?

If you had a mortgage of €300k, you got a write down of €36,000 , say 10 years ago.

As of 1 January 2019, this would have accumulated to about €50k .

If that brought you from the top LTV to the bottom LTV, you would have saved 0.4% a year or €200. Over 18 months, it would have been €300.

Not worth arguing about in the greater scheme of things. Certainly not worth paying €300 for a retrospective valuation of your property.

Brendan

 

[Megafan]

A very interesting point.

However, AIB did not allow existing customers whose LTV had reduced to move to a lower LTV band until about 18 months ago.

Key Post - AIB is now officially allowing borrowers a lower rate if they have a lower LTV

Hi all, I also got a letter from aib today offering a 2.75% rate, but was turned down by aib in Nov 17 to reduce the ltv rate to 2.75% from 3.15% at the time, the 3.15% was then reduced by the bank to 2.95% on ltv>80% after for all customers. My ltv at the time of request was 48%. My...

www.askaboutmoney.com

So it wouldn't make that much of a difference.

Brendan

Thanks Brendan, that is good to know.

Maybe it is around the margins whether the reduction is time stamped or not could help some cases or give people pause for thought.

It is an awkward question for AIB to answer anyway because the calculation of the interest repayment will contradict saying the principal reduction is current.

The rule of unintended consequences will no doubt impact here over time. There certainly are things that will need to be looked at anyway.

The two main ones in my head are the tracker panel, how everyone can step away from that satisfactory since I don't believe they can just say AIB applied the FSPO decision and that's that, maybe more specifically how do they deal with the compensation amount we all put in our letters way back when and secondly; what happens to the compound interest that forms part of the interest refund calc (which I befuddled Red Onion with on another thread!).

Interesting times ahead.