AIB 2K Mortgage Cashback

Just wondering is anyone here applying for this?
Any comments good/ bad or indifferent?

I would look for the lowest APR where you could save thousands of euro ,rather then a one off 2000 euro which is there to lure u in.

Yeah, I understand that too
Just wondering what people make of this and whether anyone has applied for this (assuming the mortgage product is the best for your situation).

The banks never give away free money (only the govt do things like that) - you'll be paying it back somewhere along the line!

You think? You're probably right. Too good to be true, eh?

At the moment we have an interesting situation where we seem to be trying to convince them that their offer applies to us (mortgage application in process) even though we appear to fit the criteria on their website.
The criteria cutoff point seems to be the letter of offer which we havn't had yet. We're having some fun and games I like a good challenge

M.

NHG said:

The banks never give away free money (only the govt do things like that) - you'll be paying it back somewhere along the line!

Click to expand...

While I absolutely agree that micheller should be going for the best APR she can get, the likelihood is that another bank would be paying this to a broker and charging the FTB for the priviledge. At least this way, all other things being equal, it goes into your pocket and not a brokers.

But as I said, get the best APR you can and save yourself thousands over the life of your mortgage.

At the risk of repeating myself (for the nth time!) the interest rates and mortgage options available through brokers are exactly the same as those from approaching the lender directly (with the exception of NIB who do not have a broker network). Lenders pay brokers commission as they (the brokers) effectively cover all the advertising and initial processing costs up to the loan offer stage by interviewing the client and packaging the application. Borrowers DO NOT pay more by going through a broker than going direct. And the AIB deal is available through brokers.

Sarah

www.rea.ie

Sarah
I read on the paper yesterday that brokers get 1% comission from the bank on every loan taken out through them. That means my broker has made 4000 euro with me in the last year as i have changed mortgage providers with them with sum of the loans adding up to 400,000. I could brokers be truely independant when there is such moeny sloshing around

cartman123 said:

I could brokers be truely independant when there is such moeny sloshing around

Click to expand...

I presume that was ment to be "how".

In the current market what can a broker do that would make you question independance?

You are more than able to go out and apply for a mortgage yourself, with the broker usually used to help get a higher figure or help get the lender a loan where they are on the threshold of criteria.
They really just do the dog work of assessing which loans people may/would qualify for where people don't wish to (or feel they don't have the ability to) do it themselves and want to have the security of having someone else help them choose the best deal.

Again, the fees are covered by the banks, that 1%, as the broker has done the work of one of the banks lenders in putting the deal to the client.

From a brokers point of view. The potential gains from kickbacks etc. would be, IMHO, fairly slim. The potential of higher volume from customer feedback to friends & family to use a specific broker would (purely an opinion, I've no facts/figures/inside knowledge to base any of this on) be worth far more to them (not to question the legal side of it).

[No connection with any broker or any element of the property business in general]

cartman123 said:

Sarah
I read on the paper yesterday that brokers get 1% comission from the bank on every loan taken out through them. That means my broker has made 4000 euro with me in the last year as i have changed mortgage providers with them with sum of the loans adding up to 400,000. I could brokers be truely independant when there is such moeny sloshing around

Click to expand...

If all lenders (who have broker networks) pay 1% then brokers must be independent as there is no reason to recommend one over another! The 1% (0.9% in the case of Bank of Scotland) depends on the level of business the broker introduces to the lender, some smaller brokers will only get 0.25% 0.5% or 0.75%. REA are the only brokers in Ireland to refund this commission, for loans up to €250,000 or use part of it to subsidise the legal fees for mortgages over €250,000.

Sarah

www.rea.ie

Bringing this topic back to the initial question of AIB 2k cashback offer.
I have read the information on their website & they definitely have a very competitive rate for 1st time buyers. AIB offer .5% discount approx for the 1st year and then there is the perk of e2k cash. I am interested if anyone came across any rule that prevented the customer from moving after a year?