Tip for those thinking of fixing with AIB ...

[dam099]

So when the ECB rate hits 2%, you will be on 2.75%

You can fix for 2.35% so you save .4% for the first 5 years.

After 5 years, the balance will fall to €60,000

View attachment 6629
So even if the rates are higher then than they would be if you stayed on your tracker, you will be paying the difference on a much lower mortgage.

Fixing for 5 years seems right.

Brendan

Just to update on this I did end up fixing this at then end of last month.

I was still on the fence as while I was happy to do so at 2.35% I was concerned about their fixed rates rising in between sending in the form (which was going to take a little while as I needed a valuation too to support the LTV) and them processing it. I felt that if the rate went to 2.85% before they processed it I wouldn't be as comfortable with the cost/benefit of giving up my tracker.

The downloadable form on their website for rate changes suggest that they will apply the rate that applies when they process it and when I rang them the agent said there was no way to lock in the rate, therefore I was concerned by the risk of a rate increase which I felt was imminent coming between me submitting and them processing.

The agent did offer to send out a comparison of the fixed rate and my tracker though so I could compare the costs. When I received the letter with this schedule however it actually did guarantee I could avail of the 2.35% rate once I returned it by a specified date one month from the date of the letter.

I therefore went ahead and returned the form which did in fact cross with their recent increase in fixed rates however they have processed it at the old rate.

So the lesson is that by getting that comparison document it was actually possible to lock in the rate for a month, contrary to their response on the phone.

 

[Paul F]

@dam099 Good tip!

I wonder if there is any equivalent comparison document that they would send out on request to non-tracker customers?

 

[dam099]

@dam099 Good tip!

I wonder if there is any equivalent comparison document that they would send out on request to non-tracker customers?

Not sure, while there were elements in there that were specific to trackers i.e. warnings about not being contractually entitled to go back on a tracker after the fixed rate (I guess they learned that lesson) there was also generic information on what a tracker, fixed and variable rate are so I imagine its possible its a dynamic template and they have a version for other types of rate switch.