AIB Fixed Rate Question

C

ct_Roy

Guest
Hi all,

Currently running the numbers on whether I should switch my mortgage from Standard Variable Rate to a 5y fixed.

Quick question (possibly a stupid one!) - If either the ECB or AIB make a decision to increase their rates is it possible for the bank to pass this increase on to a fixed rate customer in any circumstance?

I was reading the PTSB announcement of their recent rate hike and it looked like they had a "Existing Fixed Rate Business" rate increase which seemed a bit strange.

Surely the whole point of a fixed rate is to lock in against ANY rate increases?

Finally, i know it's reading the tea leaves time but would ye fix now if you could? I'm leaning towards fixing now for 5 years as I can't see any way for rates to go but up.

Are there any decent calculators out there to show you the difference between your options i.e. Additional outlay over 5 year period on f fixed vs. variable assuming current rate?
 
ct_Roy said:
Hi all,

Currently running the numbers on whether I should switch my mortgage from Standard Variable Rate to a 5y fixed.

Quick question (possibly a stupid one!) - If either the ECB or AIB make a decision to increase their rates is it possible for the bank to pass this increase on to a fixed rate customer in any circumstance?

I was reading the PTSB announcement of their recent rate hike and it looked like they had a "Existing Fixed Rate Business" rate increase which seemed a bit strange.

Surely the whole point of a fixed rate is to lock in against ANY rate increases?

Finally, i know it's reading the tea leaves time but would ye fix now if you could? I'm leaning towards fixing now for 5 years as I can't see any way for rates to go but up.

Are there any decent calculators out there to show you the difference between your options i.e. Additional outlay over 5 year period on f fixed vs. variable assuming current rate?
Click to expand...


1. No they can not increase your fixed rate under any circumstances

2. I think the existing fixed rate buisness you are talking about are those people already on a fixed rate and perhaps due to come off this rate soon. They are being told that the new fixed rates will apply to them after the term of thier existing fixed rate is over.

I like to use this calculator
 
ask yourself the following
what's the svr rate today?
the banks are under pressure and need more income which will come from various sources including variable mortgage rate increases...how much further will they go up?
how much will the ECB rate increase in the next 12-18 months?
once / if these rates go up, are they going to stay at that rate...is that rate greater than the current fix rate
 
lionstour said:
1. No they can not increase your fixed rate under any circumstances

2. I think the existing fixed rate buisness you are talking about are those people already on a fixed rate and perhaps due to come off this rate soon. They are being told that the new fixed rates will apply to them after the term of thier existing fixed rate is over.

I like to use this calculator
Click to expand...

makes sense
thanks for that lionstour
 
kildon said:
ask yourself the following
what's the svr rate today?
the banks are under pressure and need more income which will come from various sources including variable mortgage rate increases...how much further will they go up?
how much will the ECB rate increase in the next 12-18 months?
once / if these rates go up, are they going to stay at that rate...is that rate greater than the current fix rate
Click to expand...

yip - pretty certain i'm gonna fix. I spoke w/ Aib today and they tell me there's no talk internally of any rate rises at all but sure I wouldn't trust them as far as I could throw 'em!
 
I am on a Tracker ECB + 1.1% with all this talk about fixing I am getting worried if I am doing the right thing by sticking with my tracker!
 
Stronge said:
I am on a Tracker ECB + 1.1% with all this talk about fixing I am getting worried if I am doing the right thing by sticking with my tracker!
Click to expand...

Generally you will lose the tracker if you fix. In other words you will be on a variable rate, not tied to ECB rate, after the term is up.

This is usually considered a bad thing to give up.

Your current rate is 2.1% which is a super duper never to be repeated low rate. Over the next 2-3 years ECB rates will likely rise to a more normal level of 4.5% which would put your mortgage repayment at 5.5%. Your variable rate after your fixed ran out would likely be 2-3% above ECB rate so 6.5% to 7.5%.

Realistically you're unlikely to beat even 5.5% (where your mortgage is slowing going over next few yeras) for a fixed rate at the moment so my advice, stay with tracker.
 
I can't honestly believe anyone would consider moving off a tracker right now!

I rang AIB today to ask about switching my mortgage to them. I was told they're not taking switchers. This was without asking me for ANY details about my existing lender, my rate, my term, my income, my job!!

She said "oh there's a lot of demand out there for switching" ... to which I replied "all the better to grasp the opportunity for all that new business then?" ... "oh you would think so" she sighed, "but not according to the powers that be here" .......

What a a basket-case of a bank!
 
As a current ESB SVR mortgage holder I'm getting into a bit of a panic about the way the rates are going.

Having met a stone wall with the local banks about switching, are there any international banks out there that will take over my mortgage?

Taking into account LTV, remaining balance, our combined incomes and job security, I don't see us as that much of a risk, but the Irish banks seem to be refusing to let me switch with no arguments ...

What are the options???

Thanks,
/M.
 
Manuel said:
As a current ESB SVR mortgage holder I'm getting into a bit of a panic about the way the rates are going.

Having met a stone wall with the local banks about switching, are there any international banks out there that will take over my mortgage?

Taking into account LTV, remaining balance, our combined incomes and job security, I don't see us as that much of a risk, but the Irish banks seem to be refusing to let me switch with no arguments ...

What are the options???

Thanks,
/M.
Click to expand...

depends on current ltv and squeaky clean credit history, but you should be able to switch to foreign banksto for ltv <70%, not sure of Irish banks as they appear to have barely enough cash to keep the wolf from the door, never mind lend more. Lot of political influence being put on banks to lend and what little they can appears to be business lending
 
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