AIB Mortgage part variable, fixed part due to expire

D

dejected

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Hi,
In April 2010 we took out a Mortgage with AIB and decided to split it to allow us to fix part of it while having the remainder on a LTV variable rate.

House valued at €400,000

Mortgage A: €125,000 fixed 5 years (outstanding today €99,000 approx)
Mortgage B: €150,000 LTV rate >50% <80% (outstanding today €97,000 approx)

The LTV which the bank assigned us was based on the total amount of borrowings on the house so it fell into the >50% <80%.

Part A is now at the end of the 5 year fixed contract and the bank has asked us to get the house valued if we want to avail of an LTV rate. This seems like a contradiction in terms. They wanted to treat the mortgages as one entity when we were originally assigned an LTV in 2010 but now they want to look at the mortgages as a separate entity asked that I pay for a valuation. I am unsure of what the house would be valued at but we could have a situation where I am paying two different LTVs.

For the past two years we have been overpaying our mortgage with AIB and I am seriously considering switching to KBC as I feel they are singing from two hymn sheets depending on what suits them. Any advice appreciated and I hope this makes sense.

Thanks,
 
You have a total mortgage of €106,000 on a house worth €400,000 ( or was that the value in 2010?)

The AIB rate for an LTV of less than 50% is 3.91%

If you choose to switch, you are going to need a valuation on your house anyway.

You need to find out what your home is worth today, if the €400k is not the figure, and then choose which bank offers you the best deal:



It might be worth waiting a while to see if the banks reduce their rates further. Or it may be worth waiting to get your LTV down another category as you are overpaying capital.

Brendan
 
Alternatively it might be worth your while shopping around for a better rate. Assuming the LTV rate offered by AIB is not competitive!
 
We are on AIB's "discontinued" SVR of 4.15%.

AIB have now said that, as it's "discontinued", we should be on one of the variable rates. (The first person I spoke to yesterday said that, having been on an LTV rate a few years back, we couldn't be on one again, and had to stay on the 4.15% rate. Go figure.)

That was yesterday. We are now waiting for a letters from "accounts", which may require a "valuation". Ten seconds on MyHome would establish that our house is worth multiples of what we owe them.

No doubt AIB will drag this one out. We have previous with them. Why do they have to be so unpleasant? It is no wonder we own them.

So, expecting and hoping for the <50% rate of 3.85% (or is it 3.91%?). See here> http://personal.aib.ie/our-products/mortgages/mortgage-interest-rates Scroll down to Owner Occupier Over 20 Years.

D.

Ps. Why are interest rates so hard to find on the AIB website. When you go to the Mortgages page here> http://personal.aib.ie/our-products/mortgages unless I'm blind, you have to scroll all the way to the bottom to see Interest Rates in tiny print.
 
Thanks for your replies... Unfortunately our house still wouldn't be worth 400k (looking at the market I would guess around 350)). This would put us in the LTV of <80 >50 %. Given that we are overpaying and should fall within the <50% band within the next year Im considering just waiting until the then. On the positive side with AIB, they do pass on reductions to existing customers which some of the other lenders won't do but its so frustrating that they won't allow you to move bands with the LTV rates.

Dinarius, the LTV rate I was given for <=50% is 3.85% APR 3.906 :)
 
dejected said:
....but its so frustrating that they won't allow you to move bands with the LTV rates.
Click to expand...

What does this mean, exactly?

Does it mean that, you must stay within a higher LTV band for a period, even if your house increases in value?

If so, for how long?

Or does it mean that, once you enter an LTV band, you must stay there and only benefit from rate reductions to that LTV band's % rate?

As I wrote above, we're not in any LTV band at the moment, but on a "discontinued" rate. So, hopefully, we'll be put in the <50% LTV bracket.

Thanks in advance.

D.
 
We came off a 1-year fixed rate recently. AIB wrote to us in advance asking us to select a new rate. I got a valuation done and requested LTV >50 <80. Sent it all in in writing. That was 3 weeks ago and I'm still waiting for a response.

Have since been put on the "default rollover" SVR of 4.15%. Sent an email last week to home mortgages with a scanned copy of my original written correspondence and asking for an update. Still no reply or update.

Outstanding customer service.
 
PolkaDot said:
We came off a 1-year fixed rate recently. AIB wrote to us in advance asking us to select a new rate. I got a valuation done and requested LTV >50 <80. Sent it all in in writing. That was 3 weeks ago and I'm still waiting for a response.

Have since been put on the "default rollover" SVR of 4.15%. Sent an email last week to home mortgages with a scanned copy of my original written correspondence and asking for an update. Still no reply or update.

Outstanding customer service.
Click to expand...

I'm not surprised. Every day they drag their feet, it's costing you money, because the changeover to the lower LTV rate (if and when it happens) won't be backdated to the date of the valuation, AFAIK.

D.
 
Dinarius said:
Ten seconds on MyHome would establish that our house is worth multiples of what we owe them.
Click to expand...

What value did you put on it for the LPT? I wouldn't rely on MyHome, check out the property price register instead for accurate prices.
 
Dinarius said:
The first person I spoke to yesterday said that, having been on an LTV rate a few years back, we couldn't be on one again,

.
Click to expand...

I wouldn't accept that unless I got it in writing, ask them and see how you get on.
 
Bronte,

Thanks for the replies.

Just checked the register. Two houses sold on our road last year. €690k and €845k. We owe <€200k.

D.
 
Dinarius said:
I'm not surprised. Every day they drag their feet, it's costing you money, because the changeover to the lower LTV rate (if and when it happens) won't be backdated to the date of the valuation, AFAIK.

D.
Click to expand...

That's fair enough but a valuation can be arranged in a week.
 
Well did he ring them two days after they received the report ! And every couple of days after that. It always takes a month in any case for it to have an effect. Depends on when you're mortgage gets paid.
 
Spoke with AIB.

Their accounts department will consider our situation.

The "discontinued" SVR of 4.15% on their website apparently means it is "discontinued" for new business.

I said, "So, your existing customers are expected to subsidize new business?" Stoney silence........ :rolleyes:

I made it clear that KBC would subsidize our moving to them, so the choice is AIB's.

We shall see.

D.
 
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