Key Post How to get AIB to allow you move to a lower LTV mortgage rate

Discussion in 'The Fair Mortgage Rates Campaign' started by Victor Collins, 3 Oct 2017.

  1. Victor Collins

    Victor Collins Registered User

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    Last edited by a moderator: 12 Nov 2018
    AIB have refused to switch the interest rate on our home loan to the new lower rate for a lower LTV because the Letter of Offer forbids it! We are on a LTV between 50% -80% but our LTV is less than 20% This seems unfair for a bank that had to be rescued to be adopting a Rules based approach. If we were in arrears they d be cutting us a deal and doing a rite off Cant help feeling we are being screwed Anyone else in this predicament?
     
    Last edited by a moderator: 12 Nov 2018
  2. Berneseduke

    Berneseduke Registered User

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    one question, is the LTV reduced due to lump sum repayments you made of from the value of the house increasing?
     
  3. Victor Collins

    Victor Collins Registered User

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    Thanks Bernese Its a combination of both lump sum and increasing value as borne out by reputable Auctioneer's valuation and confirmed by Property Price Register Is there any significance to how the LTV came down?
     
  4. RedOnion

    RedOnion Frequent Poster

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    Last edited by a moderator: 12 Nov 2018
  5. Victor Collins

    Victor Collins Registered User

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    Thanks Red Onion
    I ll contact AIB and indicate I am aware of other customers beingallowed to switch down in similar circs to our own. I ll let you know how I get on Kind rgds
     
  6. Brendan Burgess

    Brendan Burgess Founder

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    This has come up a few times, so I have made this thread a Key Post.

    I have extracted the comments from AIB to the Oireachtas Finance Committee on the attached which you might need to quote if they refuse.

    Brendan

    Deputy Michael McGrath: On another point of detail, is it possible for AIB customers
    to move down the loan to value band and benefit from a reduced interest rate, in line with an
    improving loan to value ratio they might have? Is it possible for customers to benefit from getting
    a new house valuation from a panel of valuers nominated by the bank?

    Is it possible for customers who took out an original loan at a 90% loan to value ratio, and who now have a ratio at less than 50%, to benefit from the 2.75% rate if they submit a valuation?

    Mr. Bernard Byrne: Yes, and we write to all customers annually and advise them of this process, but we do need valuation.

    Deputy Michael McGrath: That is fine, and is it the case that they are not limited to one such reduction? Irrespective of whether they started with a standard variable rate or a loan to value mortgage, is it the case that if they now have a much improved loan to value ratio they can benefit from the reduction?

    Mr. Bernard Byrne: I will ask my colleague to answer this.

    Mr. Robert Mulhall: There is no such restriction, but we make the loan to value offer at thepoint of origination and it is worth noting we do not evaluate it the other way, whereby if the market moves in the opposite direction we do not move people in that direction.

    Deputy Michael McGrath: There is a slight contradiction between what the two witnesseshave said. To clarify it absolutely, if somebody gets and submits to AIB a valuation on his or her home from an approved panel of valuers that shows an improved loan to value, which brings the person into a lower band with a lower interest rate, that person will be given that interest rate.

    Mr. Robert Mulhall: Yes.
     

    Attached Files:

  7. celticbhoy32

    celticbhoy32 Registered User

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    Very interesting thank you brendan. I have tried in the past to move down through the ltvs to no avail. Reading this excerpt it looks like they have been breaking their own rules. Will email them again with the above attachment. See what they say to that
     
  8. Brendan Burgess

    Brendan Burgess Founder

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    You are very welcome.

    Please report back here what happens. If they refuse get it in writing and send it on to Michael McGrath or to me.

    Brendan
     
  9. thetowen

    thetowen Registered User

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    I've tried this a couple of times but the constantly say, due to the contract there not allowed. If I move and return apparently it is allowed!!!
     
  10. celticbhoy32

    celticbhoy32 Registered User

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    Me too I've tried it on two separate occasions over as many years. This excerpt gives me renewed hope to try again. Have you quoted this in your previous correspondence?
     
  11. thetowen

    thetowen Registered User

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    Haven't tried that ,
    Haven't tried that, was going to see how you get on.
     
    celticbhoy32 likes this.
  12. celticbhoy32

    celticbhoy32 Registered User

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    Last edited: 28 Nov 2018
    I've received a reply from AIB stating that it was policy back then NOT to allow people move between bands. It looks like this policy is no more, simply from the questions asked in the Oireachtas and the uncertainty in answering from the banks reps. I'll be getting my home valued again and hope to scrape into the <50 ltv. Thanks again Brendan. I'll update in new year when all is, hopefully, sorted

    Edit. Brendan has uploaded my screenshot to the page.
     
    Last edited: 28 Nov 2018
  13. Brendan Burgess

    Brendan Burgess Founder

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    Celtic bhoy

    That is great news to have it in writing. I have reproduced it again, as some people have problems reading attachments.

    upload_2018-11-28_13-16-48.png
     
  14. Brendan Burgess

    Brendan Burgess Founder

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    I would ask when the policy changed?

    Aren't the lenders supposed to write to borrowers every year telling them about their options to reduce the rate they are paying?

    Has this come into effect yet? Has anyone on a non-tracker rate a copy of their letter from AIB?

    Brendan
     
  15. RedOnion

    RedOnion Frequent Poster

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    It'll be interesting to see if AIB clarify this before they send out their letter in the New Year advising customers if a better rate is available.

    Here's the wording on the current AIB mortgage amendment form used to apply a rate change, which aligns with the wording in my mortgage contract from 2012:

    "Once an LTV band is applied to this mortgage account, movement between LTV bands is not permitted."

    From: https://aib.ie/content/dam/aib/personal/docs/our-products/mortgages/mortgage-amendment-form.pdf
     
  16. cartman123

    cartman123 Registered User

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    Last edited: 10 Jan 2019
    Got a mortgage statement today included was the option to change Ltv to <=50 at 2.75% from the current <= 80 . I rang to confirm. Policy has now changed from 2019. I need to get valuation done 150 euro and send off letter with signature. All v easy.
     
    Last edited: 10 Jan 2019
  17. Victor Collins

    Victor Collins Registered User

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    Brendan, good news to report at last
    AIB have agreed to the rate reduction to the lowest LTR less than 50% which is a saving of only €20 a month but every little helps and better still they also agreed to backdate it to October 2017 on the basis that their denial of our request in September 2017 was the day after the CEO had been in the Dail. That s why I was asking you about the actual date of his appearance there!
    Thank you for all your help with this. Best rgds
     
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  18. RETIRED2017

    RETIRED2017 Frequent Poster

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    Last edited: 13 Jan 2019 at 9:54 PM
    Good to see the Central Bank new rules are working so well the really are doing a very good job in restored public trust by there actions,

    They are getting results for Mortgage holders and a good feel on how to bring down Mortgage rates in Ireland forcing Banks to behave responsibility ,
     
    Last edited: 13 Jan 2019 at 9:54 PM
  19. Brendan Burgess

    Brendan Burgess Founder

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    What is the relevance of your post to the thread?

    Brendan
     
  20. Bronte

    Bronte Frequent Poster

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    That's fantastic. It's amazing how the CEO says one thing in the Dail while the actual policy was not to allow rate moves. Well done to Deputy McGrath who was so insistent on getting it clearly on the record.
     
    Coldwarrior likes this.