AIB increases SVR to 4%

Brendan Burgess

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AIB announced last night that it is increasing its SVR to 4% according to the [broken link removed]

Effective date November 13th

Investment properties SVR to go from 4.45% to 4.95%
 
Why? This bank was bailed out it is owned by the state ie the government. Who will suffer? It wont be Michael Noonan et al. Did this bank not pay out €1 billion recently?

Oh the ECB rate = .75% now that's a nice profit.

I wonder why we have elections?
 
Are they all just going to keep increasing rates until it forces the government to do something about the trackers?
 
Existing rate for new customers is 3.74%. Is this increasing to 4% or by 0.5% to 4.24%?
 
Who do you think is going to pay for the 1 billion, its the SVR mortgage holders again .
 
cos its losing money hand over fist.
ECB rate has nothing to do with the rate charged that banks access their funds, hence why trackers mortgages are costing "us" a fortunate.
the govt has no money, this country is on its knees

we have elections to elect a government. what do u suppose we should do, i know i don;t hvae the answer and i don't blame just the govt for mess we are in, a lot of people are responsible, bankers, deverlopers,builders,unions, normal joe soaps who thought they'd play monoplyand buy BTL's all over the place.

as for teh 1 billion payout, well think the Givt is stuck bewtween a rock and a hard place with thatas they are afraid of what will happen it they do not pay

btw...on im on a SVR, but i could clearly see that AIb rates where far to low to be sustainable
 
Brendan Burgess said:
Investment properties SVR to go from 4.45% to 4.95%
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That will send a few more over the edge, arrears figures are going to go up. Maybe in order to avoid that the AIB will negotiate a lower rate for those who cannot keep going.
 
AIB has the most mortgages of any lender in the country, so this really is going to effect everyone. Not great tiiming either, things taking effect the month before Christmas.
 
I'm SVR with AIB. I presume there's no point in looking elsewhere, is there?

Thanks.

D.
 
Is it impossible to change to a tracker mortgage these days?

A colleague of mine recently came off a fixed and was put directly onto a tracker mortgage of 2% + ECB (I think this was the rate). They did not think it was a part of their contract.
Maybe they had to offer a tracker at this stage and if he didn't take it now he would never get it?
 
So would people be mad now to purchase a house and choose a SVR mortgage? There isn't much of an alternative. Fixed rate is obviously an option. But other than that what? It's not that cheap to rent at the moment.
 
bugler said:
That is assuming the historic low ECB rate continues for the duration. A big assumption.
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True but I suppose if the ECB went up to rates of approx 4%, the variable rate could be around the 7% mark, so there will always be a difference.
 
WHY ARE AIB getting all the slack. What hold do BOI have on the media???
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Pretty much because AIB is 100% state owned. I don't believe boi are as yet.
 
Seems like they are just aligning rates with the other banks IMO.. I'm with EBS and their variable rate is 4.33... Welcome to the party
 
[broken link removed] is not going to get involved


Mr Kenny was responding in the Dáil this afternoon to questions from Fianna Fáil leader Micheal Martin on the AIB increase in mortgage interest rates.


Mr Kenny said the Government was not in a position to direct that interest rates should not be passed on.


"This is a commercial decision by AIB," he added.


"Yes, it is difficult and challenging for people on variable mortgages, but it is necessary that this bank get back to profitability."


Mr Kenny said that if that was not the case, the State would have to continue to recapitalise the banks.


Mr Martin said that last week, for the second time in a month, AIB announced a major increase in its standard variable interest rate mortgage to four per cent.
This, he said, would affect 70,000 householders and had been described by one expert as "absolutely obscene".


He said the decision was further evidence that the banks and the Government had essentially abandoned mortgage holders.
 
Being a cynical individual, I believe that there was no doubt, Government pressure on AIB in relation to reduction last year and it saddens me how our Taoiseach et el are dealing with this nationalised bank. Why bother with that charade when they’re (the Gov) advocating/disassociating themselves with the increases since then. Did they steam in last year, Elliot Ness style with a few months under their belts, insisting on a reduction and then realised they (and us as a country) had bitten off more than they/we could chew. For AIB to reduce interest rates less than a year ago but say they now have no option but to increase them stinks of political interference but yet the government insist now they cannot intervene. I understand why they need to increase them but having had our variable increase 1% in the last few months for a bank we already support is a kick too far. And yes, I understand what a variable mortgage means that I signed, but this rant is more about the flakyness of our political representatives and would be in Letting Off Steam if I had enough posts...I have no political affiliation other than detestation for them all.
 
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Welcome to our world ladies and gentlemen. The PTSB SVR has been the hot potato for the last 18 months.
Time for the other subsidised banks to
start pulling their weight and this will be done by stiffing the customers with the bill.

Our PTSB group talked about AIB in January. Unfortunately we were correct about other low interest banks raising their rates gradually.

Bottom line is the Irish banks were given a fortune out of our pockets.
The government own a large amount of the bank system in Ireland now, and despite the public mantra being 'we don't get involved',
you can bet the back room battleplan is very different.

Anyone on a low SVR (if there are any left) can expect those days to be numbered. This is a small raise,
but depending on the fallout of our campaign (PTSB) against the high rates we were being charged, AIB heads
will test the water as to how far they can raise the rates.
It's all about returning to profit and the common denominator of all bank debt is = we are paying for it.
 
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