"AIB to increase rates on new fixed mortgages by 0.5%" (Oct 2022)

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AIB to increase rates on new fixed mortgages by 0.5%

AIB is to increase the interest rate it charges for new fixed rate mortgages by 0.5%.
www.rte.ie www.rte.ie
AIB is to increase the interest rate it charges for new fixed rate mortgages by 0.5%.

The change does not affect those customers who are already on a fixed rate or those on a variable rate.
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Glad that I managed to refix last month - I was considering to refix again this month or in December but won't do that now.
 
Was bound to happen. We've literally drawn down the final amount on our top up mortgage today (after switching from KBC and adding on a top up for renovations). Given we're already approved and in process of drawing down I'm hoping to be included in the one month grace period and can still apply for the current 2.15% Green rate. Amendment form is gone in the post today.

I think I'm still covered by the old rates if I understand it correctly?
 
My loan offer with AIB is due out next week. What the chances that drawdown is completing before 14th of November? Zero I'd imagine.
 
Mandub said:
Was bound to happen. We've literally drawn down the final amount on our top up mortgage today (after switching from KBC and adding on a top up for renovations). Given we're already approved and in process of drawing down I'm hoping to be included in the one month grace period and can still apply for the current 2.15% Green rate. Amendment form is gone in the post today.

I think I'm still covered by the old rates if I understand it correctly?
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But you've finished drawing down, right? I would not think that you are covered by the one-month grace period. AIB's mortgage amendment form says the following:
The interest rate you have selected may change between the time you complete this application form and the time we process it. The interest rate applicable at the time we process the application form will be applied to the loan.
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So I'd be surprised if you get the 2.15% rate – they are more likely to apply the post-increase (2.65%) rate.

What rate are you currently on?
 
Brego888 said:
My loan offer with AIB is due out next week. What the chances that drawdown is completing before 14th of November? Zero I'd imagine.
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Do you have a loan offer from AIB yet? If not, you are not eligible for the old rates.

When the loan offer arrives, check that date that is on the letter. If you are very lucky, it might be today (14th October).
 
Paul F said:
But you've finished drawing down, right? I would not think that you are covered by the one-month grace period. AIB's mortgage amendment form says the following:


So I'd be surprised if you get the 2.15% rate – they are more likely to apply the post-increase (2.65%) rate.

What rate are you currently on?
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On a variable rate at the moment. Haven’t made any repayments yet as have a 6 month moratorium on the switcher / top up. Final checks on the last drawdown were been carried out today however it doesn’t seem to have been dispersed yet according to the app.

I’m hoping that as cob today I’ll still be seen as in the process of drawdown so can still get the 2.15%.
 
So I put in a change to the Green 5 year fixed two weeks ago. I was on a tracker retention product that is higher than it. I rang earlier today before the news broke and asked about what is going on. They told me they have sent me a correspondence on the 10th that I need to confirm with another form that I want to move off the tracker. As they now refer to the mortgages without defining the rates on the forms have they shafted me, is there anything I can do?
 
TedBishop said:
So I put in a change to the Green 5 year fixed two weeks ago. I was on a tracker retention product that is higher than it. I rang earlier today before the news broke and asked about what is going on. They told me they have sent me a correspondence on the 10th that I need to confirm with another form that I want to move off the tracker. As they now refer to the mortgages without defining the rates on the forms have they shafted me, is there anything I can do?
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@TedBishop Have a look at this post from @BigPineapple:
BigPineapple said:
Called again and spoke to another rep, surprisingly he told me they have processed it yesterday (Submitted on Wednesday) unfortunately I signed it using digital signature which wasn't accepted (The physical letter to confirm that it wasn't accepted was on the way to me but he can see it in the system).

He told me to resend it again with a hand written signature and make reference to the submission I made on Wednesday and it will be honoured.
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So AIB might use the date when you first sent the rate change form (about two weeks ago), even if they first need you to confirm that you want to give up your tracker.

Also, see AIB's info page about the rate change:
I am a mortgage customer and have submitted a request to fix my mortgage interest rate. Does this change affect me?

We will charge the previous rate (before the increase) to customers who have asked us to fix their rate using the mortgage amendment form from our website by close of business on 14 October 2022.
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@Mandub Hopefully AIB will also let you have the pre-increased rate. Point them to that info page if they don't.
 
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I’m assuming that approval in principal doesn’t count as an offer for the purposes of the old rate? Was in the process of switching but seem to have run out of time!
 
I’ve got a letter of offer in-hand for 10yr fixed issued a few weeks ago, waiting on other sides deeds to come in….once that occurs solictor will do drawdown request…maybe as early as this Monday/Tuesday ………do you think I’ll get it processed before Nov 14th and get old rates?
 
Markel said:
I’m assuming that approval in principal doesn’t count as an offer for the purposes of the old rate? Was in the process of switching but seem to have run out of time!
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@Markel Consider posting your mortgage details in the switcher thread (in the format shown in the first post). I'll estimate the savings you would make from switching to different lenders, so that you can see whether or not it still makes sense to switch to AIB.
 
So had an interesting call from AIB today. They told me they would honour the old interest rates if I complete my switch before the 14th of November even though they were only sending the loan offer out this afternoon.
Now the question is what are the chances of completing the switch in 4 weeks? I think it's slim.
 
I rang them and was told them I have a month also to accept the old rate as I had my form in a few days before it was announced but they have to write to confirm the change with me.
 
Markel said:
I’m assuming that approval in principal doesn’t count as an offer for the purposes of the old rate? Was in the process of switching but seem to have run out of time!
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@Markel How far along are you in the switching process? What date did you start? Any sense of how close you are to getting a loan offer?
 
Paul F said:
@Markel How far along are you in the switching process? What date did you start? Any sense of how close you are to getting a loan offer?
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I have paused the application due to the rate rise, so I won't be proceeding to offer at the moment.
 
Markel said:
I have paused the application due to the rate rise, so I won't be proceeding to offer at the moment.
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That's fair enough. Just keep in mind that if you re-fix with PTSB now, you might find that you want to switch away from them when your fixed rate ends (and it might be impossible to switch if your financial situation has deteriorated). Of course, if you are planning to move home in the next few years, re-fixing now with PTSB might make the most sense.
 
I had started a five year refix to AiBs green mortgage 2.15% after getting my BER to a B3. They sent the letter with the break fee (nil) and refix option dated 7th October (a week after I rang them) but for some reason only got the letter on the 14th. As soon as I got home I emailed it into them but after 5 pm (printer on the blink!!!!). Received the confirmation today that I got the 2.15% fix for 5 years. Was afraid they’d do me dirty getting it in after COB but they honoured it in fairness.
 
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