Check your AIB Tracker! Sneaky ploy.

O

oblicorn

Guest
When I got my AIB mortgage a few years ago I was on a <60% loan-to-value (LTV) rate. I checked my mortgage account online recently and saw that I was on a 4.7% rate.

On checking this against rates published on the AIB website I could not find a corresponding product or rate. There was a 4.35% rate for <50% (which I would qualify for) and a 4.5% rate for LTV between 50% and 80%.

I called AIB and they told me that these were new products so I would have to request in writing to be moved to the <50% rate. This will proabably save me about EUR 100 per month in comparison with the 4.7% rate...

The thing that annoys me intensely about this is that surely if I qualified for the <60% product in the first place I should therefore automatically at least qualify for the new 50-80% product (4.5%). I think AIB should have put me onto the 50-80% product automatically (a 0.2% difference). Why does it have to be up to me, the customer, to notice the new product (which I should by default qualify for)??!

Does anyone know how long these new products have been out?

Anyway, upshot is - if you're on an AIB tracker, make sure you are on the lowest possible rate for your LTV - it could be saving you 100s each month!

Oblicorn
 
AIB introduced new products for NEW customers recently. You are not automatically entitled to them as an existing client.

You can see if they will offer you these rates, but they are not obliged to.

Feel free to shift your business elsewhere if you are not happy with AIB, NIB are offering better long term rates.

Good Luck
 
I think thats probably the cases with most banks.. they're not going to move u on to a different rate if u don't ask them to... tis ur finances so u should be keeping an eye on it..
 
I think thats probably the cases with most banks
Click to expand...

It is the case with most banks. They're not going to put resources into advising customers that they can now pay them less interest.

To be fair to AIB, they agree to put customers onto their best tracker rates on request. This is better than some lenders who have been known to refuse to offer existing customers their "new business" rates.

Liam D. Ferguson
www.ferga.com
 
There are a set of rates called "AIB 1 Year Discount Tracker Rates for Owner Occupier (New Business Only)" and then a set of rates called "AIB Standard Tracker Rates for Owner Occupier" - from which I deduce that the second lot are available to existing customers.

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To be fair AIB have said they will move me to the lower rate and I accept that customers need to be on top of these things. I just think it's a bit sneaky to leave people on a higer rate for a <60% LTV loan (and hope they don't notice) when a lower rate is available for a 50-80% LTV. OK, they don't have to tell me - but if they really valued their customers they would!

Oblicorn
 
Oblicorn

When you took out a mortgage, you were given a tracker which is .95% above ECB rate.

You are still on .95% above the ECB rate - that is what a tracker is.

There is nothing "sneaky". You have no need to be "intensely" annoyed.

What are you suggesting? That if their tracker was increased to 1.5% above ECB, they should move you to this rate?

Brendan
 
Don't think you have any reason to be annoyed, its up to you to check whats in your best interest, there's surely legalities in changing the conditions of your account without your consent. I agree it would be nice if AIB told you (and me as my mortgage is also with AIB) of new rates that would benefit you but in the real world thats never going to happe, AIB aren't in the mortage business to win friends, its all about money. I've found them willing to move me to the best rate they have available when asked, even the 1 year discounted rate when I said I was moving to NIB. Other banks in the past have been much less helpful.

D
 
When you start on a tracker rate, calculated on the the LTV of your home at the time of application, and your LTV drops in the mean time I don't think you are automatically moved over.

But I'd be curious to know if you approached them stating that you want the LTV tracker rate most appropriate to your current LTV or else your going to remortgage would they play ball and charge you the rate you want?

I'd say you are probably stuck with the initial rate based on your then LTV rate though.
 
if ur house value goes up and u get a new written valuation and submit it to the bank they should move u to the appropriate rate for that LTV... obviously if ur LTV changes how is the bank supposed to know? its not going to send out letters every month to all customers asking them if their house value has changed!
 
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