Is this actually a risk? In the form, you're explicitly selecting a particular rate by ticking next to a checkbox with that rate printed e.g. 2.1%, 2,35% and then emailing it on on the day that rate is valid on their website.
Is this actually a risk? In the form, you're explicitly selecting a particular rate by ticking next to a checkbox with that rate printed e.g. 2.1%, 2,35% and then emailing it on on the day that rate is valid on their website.@masterboy123 It seems that there are two separate actions that you are considering taking.
1) You are thinking about attempting to "restart the clock" on your 5-year green fixed rate. This comes with a risk (that AIB will increase their rates between the time you send the form and the time that they process it), so think twice about doing this.
The form has been updated to remove any mention of actual interest rates values, so I'm guessing if you don't use the most up to date form they'll either reject your application or use the rate currently in force at the time of processing.Is this actually a risk? In the form, you're explicitly selecting a particular rate by ticking next to a checkbox with that rate printed e.g. 2.1%, 2,35% and then emailing it on on the day that rate is valid on their website.
Ah, I see, and this has been added: "The interest rate you have selected may change between the time you complete this application form and the time we process it. The interest rate applicable at the time we process the application form will be applied to the loan."The form has been updated to remove any mention of actual interest rates values, so I'm guessing if you don't use the most up to date form they'll either reject your application or use the rate currently in force at the time of processing.
Silly question perhaps, but here goes....
If I was to submit a rate change application to restart my 5 year fixed rate with AIB today, what are the chances of AIB upping their fixed rates between now and say two weeks time when they get around to processing my application, causing me to end up fixing on a higher rate?
I don't know – it's been so long since any of the main banks have increased their rates.If AIB are to up their rates do they usually do so with immediate effect or would they give a date the new rates would be effective from?
If you wish to choose the Green 5 Year Fixed Interest Rate, you will be required to provide a copy of a valid and up to date Building Energy Rating (BER) Certificate evidencing that your property has a BER of A1, A2, A3, B1, B2 or B3.
I don't know – it's been so long since any of the main banks have increased their rates.
As per AIB's mortgage amendment form:
Did you provide a copy of the BER cert when submitting the mortgage amendment form?
Thank you for explaining this @Paul F@masterboy123 It seems that there are two separate actions that you are considering taking.
1) You are thinking about attempting to "restart the clock" on your 5-year green fixed rate. This comes with a risk (that AIB will increase their rates between the time you send the form and the time that they process it), so think twice about doing this.
2) You want to pay a lump sum off your mortgage. See here for how to do that. Note that you will not lose your 2.15% fixed rate if you do this. You should get a break fee quote from AIB before you make the lump sum overpayment (but in your case the break fee is very likely to be zero).
Keep in mind that overpaying your mortgage/reducing your balance may not be the best use of your money. Your priorities should usually be:
in approximately that order. Consider posting a thread about your situation in the Money Makeover forum.
- Paying off expensive debt (credit cards, personal loans, car loans, etc.)
- Building up an emergency fund in a savings/current account (3 to 6 months' living expenses)
- Saving money for any expenses you will have over the next few years (kids; buying a car; childcare; home renovations; adult children going to college, etc.)
- Maxing out your pension contributions (very large tax relief is given)
- Overpaying your mortgage
YesUpdate:
AIB told me on Friday that I should receive the break fee in the next 3-5 working days.
If it's zero, could I just transfer the lump sum from my AIB current account to AIB Mortgage account? Without the need to complete the "overpayment form" ?
Does anyone know if I could transfer more than €10k from the current AIB account to the AIB Mortgage account via online banking?
To add to this, transferring directly to the mortgage account through internet banking will Pay a lump sum and reduce your scheduled repayment amount, i.e. option a) on the mortgage overpayment form
Thanks for highlighting this.To add to this, transferring directly to the mortgage account through internet banking will Pay a lump sum and reduce your scheduled repayment amount, i.e. option a) on the mortgage overpayment form
How many working days did you wait to get the break fee letter?Thanks for highlighting the zero break fee! We got our zero break fee letter from AIB this week. Currently on 2.45 green mortgage (2 yrs in) but want to change to 2.1%. We got the house valued and everything sent back to AIB the next day. Fingers crossed it goes through soon. Will fill you in.
Update :
It's been 6 working days and no break fee letter received from AIB.
I requested a break fee about 6 weeks ago and never received letter from them.
I did ask the quote on the phone and agent told me they can't tell it over the phone.Call them and enquire/complain. Especially considering:
Ask them if they will tell you the break fee over the phone, since the quote has already been generated.
Is it possible that they have a different correspondence address on file for you?