Why Do EBS NOT pass on new variable rates to new customers - When AIB Do

T

Toshsmith

Registered User
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Hi All,


My question is really what the title says.


I am an EBS customer


6 months ago I was locked into a fixed mortgage for 5 years at a rate of 5% - I since bought myself out of the fixed mortgage and moved to their variable rate of 3.7% - overall im saving in excess of €750 by doing this.


My question is if EBS are controlled by AIB why don’t EBS have the same rates for new and existing customers the same?


The difference here is as follows


For Existing EBS customers – the variable rate is 3.7% - with new customers with an LTV of less than 50% the rate is 3.30% - this rate falls in line with AIB rates


My LTV is now below 50% however when I contacted EBS asking them to consider this they said that the would only consider LTV for new customers


Can they do this?
 
(right now) yes they can, and the way they are doing it is by saying you are on their SVR, not an LTV rate, and LTV rates are only available to new customers
 
I thought AIB Managed EBS and merged as a pillar bank?

If that is the case should they not have the same rates/rules?
 
AIB doesn't give you they <50% LTV rate when your LTV drops belove 50%. They only give you the LTV rate you sign up to initially.. its one of the reasons I'm looking to change bank... so I can get a better LTV rate somewhere else...
 
Many companies own other companies and brand, package and price their goods differently. Even though the article is the same. I am sure that the staff in the EBS are on different pay scales and terms of employment as the AIB.

The EBS spent many years touting themselves as The Mutual, when behind closed doors they were anything but.
 
As Bduke explained, AIB and EBS have the same policy in this regard.

A borrower whose LTV reduces does not get a lower rate. They get the rate of their original LTV.

Ulster Bank is the only bank which allows borrowers who reduce their LTV to avail of the lower LTV band rate.

There is a small anomaly but I don't think it's relevant to you Tosh. AIB customers on SVR, as distinct from LTV rates, can move to the current LTV rate. EBS customers stay on the SVR rate. I have been told that by AIB guys, but could not find it written down anywhere.
 
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