AIB Mortgage Rates

H

HouseBuyer10

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Hi everyone,

I was wondering if you could advise on the below AIB Mortgage Rates and what they mean exactly:
PDH LTV Var <=50% .............................. 2.75%
PDH LTV Var <=50% <=80% .................. 2.95%
PDH LTV Var >80% ................................ 3.15%
1 Year Fixed .......................................... 3.2%
2 Year Fixed .......................................... 3.2%
3 Year Fixed .......................................... 3.2%
5 Year Fixed .......................................... 3.3%
7 Year Fixed .......................................... 3.5%

Thanks a lot.
 
The first 3 are variable rates. The actual rate applicable to you will depend on you loan to value (LTV) ratio at the time you draw down mortgage, or the first time you avail of an LTV rate.
The others are fixed rates, fixed the period specified. The LTV ratio isn't relevant for fixed rates currently. At the end of the fixed period, it will automatically become a variable rate unless you choose a different option available at that time.

Post if you've a more specific question.
 
Thank you very much, RedOnion.
Our mortgage is 40% variable rate and 60% 1 year fixed (so every year we have to decide what to do the following year). Now we have to make a decision on the 70% 1 year fixed rate. Not sure what the best option would be: to keep the 1 year fixed rate every year or to go for a variable rate? If we go for a variable rate, can we change back to a fixed rate in the future?
 
HouseBuyer10 said:
we go for a variable rate, can we change back to a fixed rate in the future?
Click to expand...
Yes, at any point you can move from variable to fixed.

Do you know what your total mortgage / current house value is?

AIB strategy for the past while is to have market leading variable rates, but their fixed rates are less competitive (they use the EBS brand to be somewhat competitive). If you wanted to fix to have certainty, you'd get better rates eksewelse if you can switch. KBC just announced reduced rates, but also published a nice comparison table of other bank rates. Brendan copied the table to this thread https://www.askaboutmoney.com/threads/kbc-rate-cuts.207624/
 
Thanks for your prompt reply.
Unfortunately, we would have to have another valuation done before we change to one of the first two variable rates, but we can still benefit from the 3.15% one.
Do you know if there are any penalties if we go for a variable rate and then in 2-3 years' time we want to change to a fixed rate?
 
No, there are no penalties to switch from variable to fixed. They can only charge a break fee for ending a fixed rate early.

The valuation fee is only 130, so if you've a right to switch to the 2.95% the savings in interest in the 1st year would be recovered on a 65,000 mortgage. Your savings would be higher assuming your mortgage is more than that!

With AIB you can only switch bands though if you are on a 'standard variable rate'.
 
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