AIB cuts rates by 1/4% ; EBS, Haven by .38%

[broken link removed]

upload_2015-5-1_7-56-29.png


upload_2015-5-1_7-56-53.png
 
upload_2015-5-1_8-0-44.png


A borrower with a €200,000 mortgage will save €500 interest per annum. While the repayment will be reduced by €329, they will also reduce their capital by an extra €171.

Brendan
 
It's simple enough

For an AIB customer: €100,000 x 0.25% = €250 per year or €20 per month interest

For an EBS or Haven customer: €100,000 @ .38% = €380 per year or €30 per month interest

The actual monthly repayment will be a bit less. You will save €250 interest but they will use some of it to reduce the capital owed faster.

upload_2015-5-1_9-3-12.png


http://www.loanclc.com/
 
If any AIB customer would be prepared to speak to a journalist about how this affects you, please send an email to brendan at this website or start a Private Conversation with me.

Brendan
 
Statement by SVR Mortgage Campaign

Although this is only a token reduction, it is still welcome. The AIB Standard Variable Rate at 3.9% is still 1.7% above the average Eurozone rate of 2.09%. After these cuts, a borrower with a mortgage of €200,000 with AIB is still paying around €3,400 a year or €300 a month more than they should be paying.

After these rate cuts, AIB’s cheapest rate in the Republic is still 0.6% higher than its cheapest rate in Northern Ireland. A borrower in the Republic with a mortgage of €200,000 is paying €1,200 a year more for being on the wrong side of the border. (AIB’s cheapest rate in the Republic is now 3.6% for an LTV of less than 50%. An AIB customer in [broken link removed] with less than 60% LTV is paying 2.99%. )

Even at this much lower rate in Northern Ireland, AIB is not competitive. A borrower with an LTV less than 65% can get a tracker from HSBC at 2.49% (Base rate + 1.99%). A customer of HSBC in Northern Ireland is paying €2,200 a year less than a customer of AIB in the Republic. And the HSBC rate is a tracker rate. These much lower rates are due to competition.

The significance of the AIB rate cut is that it shows that public pressure works. We call on all borrowers on variable mortgage rates to keep up this pressure by attending a public meeting on the SVR issue next Thursday , May 7th at 7.30 pm in the Ballsbridge Hotel.

We also hope that this rate cut will act as a catalyst for a round of rate cuts from the other banks whose fleecing of Irish customers is even more ruthless than AIB’s.

Michael Hughes

Brendan Burgess

Sara Hogan

Notes for editors:

The High SVR Campaign is organising a public meeting as follows:

· Thursday May 7th

· 7.30 PM

· Ballsbridge Hotel (Formerly Jury’s)

The purpose of the meeting is:

  • To continue to highlight the very high rates
  • To discuss the political and legal options for bringing down the rates
  • To get ideas from the borrowers themselves as to how we can push this campaign
The speakers will be: Sara Hogan who spoke at the permanent tsb AGM
Michael McGrath whose Private Members motion gave the campaign a real boost
Brian Hayes who has been raising the issue with the ECB and in the European Parliament
Ross Maguire SC who will speak about the legal options for challenging the very high variable rates.
 
Good news to hear. Well done to Brendan and the rest of the campaigners! Hopefully this isn't just a one-time token gesture from AIB to keep us quiet.
 
Brilliant news for a Friday morning.

Thanks Brendan for your continued effort in highlighting this issue.
 
Why are the EBS rates different from the AIB rates - more to the point why hasn't the govt told AIB to merge EBS into their organisation? That would save some money that could be used to cut rates further...
 
Why are the EBS rates different from the AIB rates - more to the point why hasn't the govt told AIB to merge EBS into their organisation? That would save some money that could be used to cut rates further...

AIB and EBS back office/support functions have been integrated but the customer bases of the two organisations are quite disparate so they continue to serve different people. All broker business goes through EBS's Haven operation nowadays (AIB wasn't big on that front anyway).
 
While I am delighted to hear this I too wish EBS would do the same as AIB and go down to the same rate as they are basically the same.
 
Big swing, AIB. Is that seriously supposed to take the heat off, just because RTÉ read out your press release on it all day long?

Re mention of UK rates: from The Guardian yesterday...

The Co-Operative Bank yesterday unveiled the UK's cheapest-ever fixed-rate mortgage, priced at 1.09% for two years

Yes, you read that right... 1.09%. Deposit of 40% required, but still a million miles from the usury being inflicted on us mugs.
 
I don't know what it is about this country, between VRT on cars, mortgage rates, healthcare & its insurance costs and the general price of day to day living Ireland is a serious high cost country to live in. Personally I am looking abroad for retirement planning.
I have 3 mortgages, 2 on tracker (+1 and +3%) and an SVR on 4.5% (could have been 5.5%), all with PTSB. Would like to move the SVR mortgage to another provider but now that house is rented so I have to stay put and await public and political pressure to get PTSB to bring the rates down.
 
Back
Top