Is AIB mortgage rate too low? they will lend is €105k and the interest rate is 3.3%.

J

johnnyjb

Guest
Hi

We have been approved for a mortgage (FTB - owner occupier) with AIB.

The amount they will lend is €105k and the interest rate is 3.3% (roughly)

I know people with mortgages with PTSB and other banks and their rates are well into the 5% to 6% mark.

My question is how can Aib offer such low rates and is it possible they will rise considerably over coming years to catch up with the likes of PTSB.

On another note, can they offer lower rates as they have been propped up with bailout money and are able to compete because they have taxpayers money.

Thanks in advance
 
The short answer is that AIB can do whatever they like with their standard variable rate (subject to Govt. pressure/suasion etc.) How their rate is so low is not something I know but congrats on getting approval - no mean feat these days!

If you are worried about rate increases you could fix but strong signals today that the ECB are looking at interest rate cuts - which you would not benefit from if you fix. Would AIB 'pass on' any future rate cuts in their SVR is another story.......
 
AIB are looking to rebuild what they describe as a "broken brand".

The classic strategy to do is build up a customer base by offering sweet deals.

If you want to get a feel for what their longer term strategy is ask them what their fixed rate is.

Perhaps its best not to look a gift horse in the mouth.

Equally - beware of banks bearing gifts. :)
 
Hi jonnyjb, this is unrelated to your original query but I'm curious. Did it take you long to get approval from AIB? was it an onerous process? that seems to be the general consensus with AIB at present....
 
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