AIB to raise mortgage rates again (Feb 2023)

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Paul F

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Interesting that AIB are only increasing its variable rate by 0.35% in March.
 
Probably not passing on the increase to 2.5% what ECB pay on deposits, so as their mortgage book is funded by customers deposits which they pay little interest on, their cost of funds not up .5% on ECB rate increase
 
Any idea what the new variable rates are?

The website is still showing
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which I assume is the old rate?

So I presume that will be 3.5% after the increase.

Brendan
 
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AIB PDH & BTL Variable Rates:​

PDH Variable RatesCurrent RateNew Rates (Effective from 14 March 2023)
>80%50% - 80%<50%>80%50% - 80%<50%
LTV Variable Rate3.15%2.95%2.75%3.50%3.30%3.10%
Standard Variable Rate3.15%3.50%


BTL Variable RatesCurrent RateNew Rates (Effective from 14 March 2023)
Standard Variable Rate4.85%5.20%
 
Thanks Protocol

AIB has got some stick for being the only bank to increase variable rates and ptsb and BoI have been quoted favourably for saying that they would absorb the rate increases.

After yesterday's increases
AIB SVR: 3.5%
ptsb: 3.95%
BoI: 4.5%

And AIB gets criticised?

Brendan
 
Brendan Burgess said:
Thanks Protocol

AIB has got some stick for being the only bank to increase variable rates and ptsb and BoI have been quoted favourably for saying that they would absorb the rate increases.

After yesterday's increases
AIB SVR: 3.5%
ptsb: 3.95%
BoI: 4.5%

And AIB gets criticised?

Brendan
Click to expand...

It wouldn't be the first time that AIB have gotten stick despite having the lowest rate of the 3 above. A number of years ago they were seen as the bad boys for not lowering rates as quickly as other banks while again having the lowest rates.

Click bait and sound byte media at its best!
 
I've just realised that EBS did not increase their interest rates yesterday, even though they are owned by AIB. But of course they may do so soon.

And Haven increased their rates so much that they now rarely have better rates than AIB (their parent). Haven give €5,000 cashback if you are taking out a mortgage of €250k or more, but they have a reputation for being very slow, which is not what you want at a time of rising interest rates.

Best Buy - Which lenders have the lowest mortgage rates? (Updated April 2023)

While I wrote the original post on this, Paul F has edited it and made it far easier to read and has kept it updated. Brendan You (or your broker) should apply to two or three of the cheapest lenders simultaneously. It might take some time for your loan offer to materialise, and today's Best...
www.askaboutmoney.com
 
Paul F said:
I've just realised that EBS did not increase their interest rates yesterday, even though they are owned by AIB. But of course they may do so soon.

And Haven increased their rates so much that they now rarely have better rates than AIB (their parent). Haven give €5,000 cashback if you are taking out a mortgage of €250k or more, but they have a reputation for being very slow, which is not what you want at a time of rising interest rates.

Best Buy - Which lenders have the lowest mortgage rates? (Updated April 2023)

While I wrote the original post on this, Paul F has edited it and made it far easier to read and has kept it updated. Brendan You (or your broker) should apply to two or three of the cheapest lenders simultaneously. It might take some time for your loan offer to materialise, and today's Best...
www.askaboutmoney.com
Click to expand...

Ran into EBS on Friday morning to fix at the Green 3.1%, convinced they were going to tell me it was gone up but no, for now they're sticking at where they were prior to AIB's announcement!
 
David_Dublin said:
We're moving off our AIB tracker rate now to the standard variable rate (for now).
Click to expand...
Does your tracker contract allow you to return to your tracker in the future?

And as Brendan says:
Brendan Burgess said:
Some contracts say "You will be offered a tracker at the then prevailing rate". That is no good to you, as the prevailing margin at that time may well be 3.5%.
Click to expand...

What does the contract say (if anything) about returning to your tracker rate?

Consider posting your mortgage details in the AIB tracker thread:

Key Post - I have an AIB tracker – should I consider fixing?

Some general comments which apply to most AIB cases. Apart from the shocking treatment of tracker customers, AIB has treated its mortgage customers fairly – well, fairly in comparison to other lenders. It does not maintain an artificially high default variable rate, and so lazy or busy...
www.askaboutmoney.com
 
Hi. Thanks for the reply. The letter from AIB says "you won't be able to change back you your current tracker interest rate".

But the current rate is 3.5% and about to go to 4%, so it's time to move on I think.

I'll post in that other thread, thanks.
 
So is there merit in considering remaining on AIB low LTV variable rate, with a balance of 350k over 20yrs? Currently 3.3%. Will pillar banks always want to have competitive variable rates as their shop window offering? Fixed rates appear to be very unattractive, and rising to protect banks. Am I the only one thinking of this way forward, as it appears that everything in the media is about fix fix fix? Or am I crazy!?
 
@Lenguy We have very little evidence so far that the pillar banks intend to price their variable rates below their fixed rates for the long term. Only AIB are in this position at the moment, and it's possible that they will make their variable rates more expensive than their fixed rates again – we just don't know.
 
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