Is AIB now allowing people to move LTV bands?

F

Foobar

Registered User
Messages
32
Moved from another thread to highlight this important issue - Brendan

Sarenco said:
Yeah, unlike KBC and UB, AIB don't allow existing customers to switch to a lower LTV bracket during the term of a loan. That may be a material consideration depending on a borrower's circumstances.
Click to expand...

I have had some correspondence with AIB on this recently. I have confirmed via email that once the mortgage amount reduces, you can request in writing to switch to a lower LTV rate.
 
Last edited by a moderator:
Very interesting about AIB. It's certainly opposite to everything they say publicly on the issue. Lock that email away safely.

Have they said this to you while you are applying for the mortgage or while you are an existing customer?

Brendan
 
Last edited:
Brendan Burgess said:
Have they said this to you while you are applying for the mortgage or while you are an existing customer?
Click to expand...

New mortgage application. We have a approvals from a few banks, I just wanted to clarify everything with each of them up-front before making a decision, so I have been asking these sort of questions.
 
Foobar said:
Hi @Brendan BurgessI have had some correspondence with AIB on this recently. I have confirmed via email that once the mortgage amount reduces, you can request in writing to switch to a lower LTV rate.
Click to expand...

Very interesting indeed. AIB were something of an outlier in not allowing borrowers to switch to a lower LTV bracket during the term of a home loan so I'm not entirely surprised that they may have softened this policy.
 
This is interesting; I'd be in a position to move AIB bands if they allowed it. Wonder should I get in touch and ask about it; who in the bank would you actually ask about this?
 
I was there not so long ago trying to switch my mortgage and they def. didn't allow it then - good news if they are now.
 
Long time lurker around here, but this topic is interesting to me. There was previous debate here and elsewhere about whether or not AIB allowed LTV band changes, so I decided to try find out and successfully had mine changed a few months ago. In my case there had been a lump sum repayment off the mortgage, as well as increase in property value, but they based in on the repayment so no proof of valuation was required - just a simple phone call.
In my case, it turns out that I have a relationship manager, so I called them rather than the mortgages section and they chased it up for me (I used the line that we were thinking of switching elsewhere). You can see if you've a relationship manager (and their contact details) when you log into the full AIB website - it's not available on mobile app.
 
WorstPigeon said:
This is interesting; I'd be in a position to move AIB bands if they allowed it. Wonder should I get in touch and ask about it; who in the bank would you actually ask about this?
Click to expand...
Call or email AIB mortgages direct. That's who I was talking to.
 
Brendan Burgess said:
Great stuff.

It's a pity that you have to threaten to move.

Brendan
Click to expand...
I'm not sure if you have to. I mean, I just asked if it was possible if I choose to take a mortgage with them. She didn't attach any conditions to it. They would be mad to refuse, because I think they know the people who would be enquiring about moving LTVs bands are also the people who keep an eye on the rates.
 
I think it's always encouraging to see a lender re-acting positively to competitive pressures.

Customer inertia is a core element of any bank's business plan.
 
Brendan Burgess said:
Great stuff.

It's a pity that you have to threaten to move.

Brendan
Click to expand...

I don't think it influenced things at all. It was literally a 2 minute call, and the reaction was yes of course I should be able to move bands. However I got the impression there wasn't a clear procedure on how to do it. They called back within an hour to confirm some details, and the next day to confirm it had been authorised and would take effect from my next repayment date.
I think the key thing about our case was we had made large capital repayments - I don't know if they would move you on the basis of increased property values.
 
You must log in or register to reply here.
Back
Top