AIB increases SVR by 0.5%
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Brendan Burgess
Founder
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Here is their [broken link removed]
Standard Variable Rates:
• AIB currently has the lowest Standard Variable Rate (SVR) in the Irish mortgage market. Based on current available market data the average SVR in the Irish market, excluding AIB is c.4.3%. According to available market data for major banks in the UK the average SVR is c.4.1%. AIB’s current owner occupier rate is 3.0% and the bank has had the lowest rate in the Irish market since the start of 2009
• AIB is committed to participating in the mortgage market for long term viability reasons. However, it must do so at an appropriate economic return in order to sustain its participation. AIB’s current pricing levels are uneconomic relative to the bank’s cost of funds and as previously indicated, AIB’s mortgage portfolios, including the SVR portfolio are loss making. AIB is therefore increasing its SVR by 0.5%, effective from the week of the 3rd of September 2012
• Following this increase AIB will continue to have the lowest SVR in the Irish domestic market. This interest rate increase applies to c.20% of AIB Group’s mortgage portfolio
• This decision is essential if AIB is to return to a viable operating model, conserve its capital both for new lending to the economy, helping customers in genuine difficulty with their mortgages and ultimately make a return for the taxpayer on the capital invested in the bank
Summary of Variable Interest Rate Changes
• Existing Residential Owner Occupier Standard Variable Rate will increase by 0.50% from 3.00% to 3.50%
• Loan to Value Variable Rates for Owner Occupiers will increase by 0.50%
• Buy-to-Let Standard Variable Rate will increase by 0.50% from 3.95% to 4.45%
• Tracker Mortgage Rates and existing Fixed Rate Mortgage interest rates remain unchanged
• EBS mortgage rates remain unchanged
Standard Variable Rates:
• AIB currently has the lowest Standard Variable Rate (SVR) in the Irish mortgage market. Based on current available market data the average SVR in the Irish market, excluding AIB is c.4.3%. According to available market data for major banks in the UK the average SVR is c.4.1%. AIB’s current owner occupier rate is 3.0% and the bank has had the lowest rate in the Irish market since the start of 2009
• AIB is committed to participating in the mortgage market for long term viability reasons. However, it must do so at an appropriate economic return in order to sustain its participation. AIB’s current pricing levels are uneconomic relative to the bank’s cost of funds and as previously indicated, AIB’s mortgage portfolios, including the SVR portfolio are loss making. AIB is therefore increasing its SVR by 0.5%, effective from the week of the 3rd of September 2012
• Following this increase AIB will continue to have the lowest SVR in the Irish domestic market. This interest rate increase applies to c.20% of AIB Group’s mortgage portfolio
• This decision is essential if AIB is to return to a viable operating model, conserve its capital both for new lending to the economy, helping customers in genuine difficulty with their mortgages and ultimately make a return for the taxpayer on the capital invested in the bank
Summary of Variable Interest Rate Changes
• Existing Residential Owner Occupier Standard Variable Rate will increase by 0.50% from 3.00% to 3.50%
• Loan to Value Variable Rates for Owner Occupiers will increase by 0.50%
• Buy-to-Let Standard Variable Rate will increase by 0.50% from 3.95% to 4.45%
• Tracker Mortgage Rates and existing Fixed Rate Mortgage interest rates remain unchanged
• EBS mortgage rates remain unchanged
shigllgetcha
Registered User
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- 216
i note it says sept3rd. if you mortgage repayment is debited from your bank on the 1st each month does that mean the actual increased amount will not be taken until the october 1st payment is debited?
I bet there will be no outcry from the government this time telling them to stop the increase. on the one hand i can the see logic for the increase but on the other hand as an already hardpressed AIB customer it will just leave me and the thousands of others with less money to spend each month to put back into the economy....
I bet there will be no outcry from the government this time telling them to stop the increase. on the one hand i can the see logic for the increase but on the other hand as an already hardpressed AIB customer it will just leave me and the thousands of others with less money to spend each month to put back into the economy....
LDFerguson
Registered User
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- 4,663
Yes.
Brendan Burgess
Founder
- Messages
- 52,160
They will charge the increased interest to your account from Sept 3rd, irrespective of the date of your mortgage payment.
They will then recalculate your next repayment based on this. But everyone gets charged the extra on their account from 3 Sept
Brendan