ECB cuts interest rates by 0.5 points

Grace80

Registered User
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43
The best rate I could see was AIB @ 3.49, which is 0.25 points lower. That difference alone was costing me approx. €53 a month. Now that AIB have reduced their rate to 2.99% and KBC have only reduced theirs to 3.49%, it's gonna cost me an extra €105 a month to stay with them!:mad:

We're currently looking at maybe buying a new house, but now whether we do or don't, we're certainly moving from KBC.
The AIB variable rate??? This is currently 3.75% and will reduce to 3.25% with the latest ECB cut...
 

Soarer

Frequent Poster
Messages
106
Apologies, got a bit mixed up yesterday....was working everything from memory!:eek:

After doing a bit of snooping, it turns out the KBC interest rate (before ECB cut) is 4.24%. This means with the latest cut, my new interest rate will be 3.99%. This will save me €52.92 a month.....not to be sniffed at.

But if I move to AIB, I'll be dropping from 4.24% (current KBC rate) to 3.25% (new AIB rate), I'll be saving approx. €210 per month!:eek:
I suppose that's not really comparing apples with apples, so if we take the new KBC rate (3.99%) against the new AIB rate (3.25%), I'll be saving €156 per month!:)

Tis a no brainer really.

P.S. All the above figures are just interest repayments on a €254k mortgage, and I think they're correct. If they're wrong, I'd like to know what the correct figures are.:confused:
 
I

irishlinks

Guest
Apologies, got a bit mixed up yesterday....was working everything from memory!:eek:

After doing a bit of snooping, it turns out the KBC interest rate (before ECB cut) is 4.24%. This means with the latest cut, my new interest rate will be 3.99%. This will save me €52.92 a month.....not to be sniffed at.

But if I move to AIB, I'll be dropping from 4.24% (current KBC rate) to 3.25% (new AIB rate), I'll be saving approx. €210 per month!:eek:
I suppose that's not really comparing apples with apples, so if we take the new KBC rate (3.99%) against the new AIB rate (3.25%), I'll be saving €156 per month!:) .:confused:


But.... it will cost you at least a grand to switch to AIB.
Halifax might be worth looking at too - they have good rates and pay towards legal fees for switchers
Also - will the other banks accept you? How much is the value of the house?
 

PaddyW

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1,270
At savings of 210 per month, wouldn't you break even on that after 5 months though? The 1000 euro switching fee that is.
 

Citygirl

Registered User
Messages
11
Just to let you know that I have 2 friends who are switching their mortgages over to AIB and they are getting approx €1200.00 towards their legal fees. So make sure you ask because then it is really worth your while.
 

Soarer

Frequent Poster
Messages
106
Also - will the other banks accept you?
Why? What's wrong with me? ;)

Seriously though, we should be ok. The wife's job (with a German Engineering Company) is as safe as can be in the current climate. I have one of those semi-state "job for life" things :eek:.
Our house is standing us €250k, and it's been valued at €320k...would probably only get €300k in this day and age :(.
I was onto our mortgage broker the other day, and after we sent in our salary certs and stuff, we got "pre-approved" for a mortgage amount over double our current mortgage.
And as a final cherry on the icing on the cake, our solicitor is a friend of ours, and they'll do the donkey work for <€500 :D.

So it's pretty much a no brainer for me. If KBC had reduced by the full 0.5%, I wouldn't be bothered.

Actually, can banks be haggled with? I'm thinking that when I ring up to tell them I'm leaving because of the 0.25% reduction, is there a chance that they'll offer me the 0.5%? Maybe those who ask will get it, and those that don't, won't?

@ Citygirl : Did your friends go direct to AIB, or did they go through a broker?
 
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Grace80

Registered User
Messages
43
Were the rate reductions to come into effect today?
I just checked the AIB website and the variable rate is still quoted as 3.75%....

My next mortgage repayment will be debited on the 25th of January -
Can someone tell me if the new reduced rate 3.25% will be applied to this or will I have to wait till next month??
 

twofor1

Frequent Poster
Messages
1,284
Fair play to NIB, the ECB rate comes into effect today, they must pass this on within 3 working days for trackers so they could have dragged it out until next Monday.

I can see online the rate applying to my tracker has reduced to 2.5% today.
 

Taxi Driver

Frequent Poster
Messages
54
PTSB will be passing on the latest 0.5% cut to Variable and Tracker rates on the 13th of February. Repayments won't change until March.

I don't know about this 3 days requirement mentioned for NIB. I thought it was 30. Or can the banks set their own?
 

twofor1

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Messages
1,284
I don't know about this 3 days requirement mentioned for NIB. I thought it was 30. Or can the banks set their own?
Don’t know about PTSB but my terms and conditions state the new rate will be applied within 3 working days.
 

moneygrower

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Messages
630
Actually, can banks be haggled with? I'm thinking that when I ring up to tell them I'm leaving because of the 0.25% reduction, is there a chance that they'll offer me the 0.5%? Maybe those who ask will get it, and those that don't, won't?

We did this I think it was a year ago, ask to speak to retentions dept, we got lower rate than any advertised by the bank and saved hassle of moving.
 

Luckycharm

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Messages
541
Actually, can banks be haggled with? I'm thinking that when I ring up to tell them I'm leaving because of the 0.25% reduction, is there a chance that they'll offer me the 0.5%? Maybe those who ask will get it, and those that don't, won't?

We did this I think it was a year ago, ask to speak to retentions dept, we got lower rate than any advertised by the bank and saved hassle of moving.

I guess it depends on whether you can switch mortgage as it is not was easy as it once was so they could call your bluff.
 
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