AIB's "Fixed Reversionary Rate"?

[Brendan Burgess]

Has anyone checked out what a "Fixed Reversionary Rate" is?

So, if I have an original LTV of <50% I will be paying 2.75%.
If I am worried about rate increases, I could fix for one year at 3.2%.

But after that, I would go to 3.15% and not the 2.75%.

So AIB customers should not fix?



Brendan

 

[PolkaDot]

It may be the case that AIB simply mean that the SVR is the Rate that people will default on to after a Fixed Rate period ends, unless they choose an LTV or another Fixed Rate.

That is what happened to me at the end of a 1 YR Fixed Rate period. I received a letter offering me the full suite of available options and noting that if I did not choose one, I would be moved to the SVR. So I got a valuation done and chose the LTV 50%-80% option.

 

[Brendan Burgess]

Hi Polka Dot

That is very interesting.

If you have an SVR with AIB, you can switch once to the LTV rate.

But if you have an <90% LTV rate, and want to switch to the <50% rate, you can't.

I wonder if you fix for a year, can you go to the LTV rate appropriate at that point in time, rather than the original LTV?

Brendan

 

[RedOnion]

Contractually, once you've been on any LTV rate with AIB, you stay in that band indefinitely, even after a fixed rate.

However, they've been known to let some customers switch.

 

[AlbacoreA]

Contractually, once you've been on any LTV rate with AIB, you stay in that band indefinitely, even after a fixed rate.

However, they've been known to let some customers switch.

I wonder how many switch banks due to this...