Will AIB drop below 2.95% on 60% LTV mortgage?

D

DaveD

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I've suddenly realised that my house is below the 60% LTV ratio that banks use as a cutoff point for different mortgage rates. I've contacted my current lender AIB who are happy to offer their below 60% tracker rate of 2.95% (ECB + 0.95), all I have to do is ask in writing they say. However I'm told by NIB that they offer a tracker of 2.79% (ECB + 0.79) and will pay €600 towards switching costs, which should cover the legal costs I think.

The switch to NIB over AIB will save me about €28 per month, and I'd sooner have in my pocket than AIB's shareholders. AIB mortage dept say they are rigid about the 2.95 rate but will they stick to this if I say I'll move to NIB? Waiting for return phonecalls at the moment.

Mortgage outstanding is about €314,0000, so I think stamp duty of €314 will also apply.

Am I missing anything here or should I just ask NIB for the paperwork and get on with it?
 
Are all of the rates quoted above APRs or nominal rates? You should make sure to only compare APRs or comparable costs per thousand and not nominal rates. You should use Karl Jeacle's mortgage calculator to figure out the total cost over the full term of AIB's 2.95% versus NIB's 2.79% over the lifetime of the loan (assuming rates stay at that level for that period which will obviously not be the case but at least gives you some idea of the comparative costs).
 
Did AIB look for a new valuation or will they take your word? Are you dealing with your local branch or directly with head office?
 
I asked them about a formal valuation and they said they were happy to take my word for it, very unlike a bank! However I was dealing with my own "account manager" at my local branch. I just have to ask in writing and they'll change to the lower rate. They won't budge on the 2.95% rate though.

In response to Clubmans point about APR's, NIB's APR is 2.8% and AIB's APR is 2.99% so the difference is even more in favour of NIB. I'm no fan of NIB but I'd sooner have the money in my pocket.
 
DaveD,

I had recent experience with AIB where they advised me in writing that I was coming out of a fixed rate and proposed Std variable or fixing again. There was no mention of a tracker but, thanks in no small part to this BBoard, I called their mortgage centre and asked that they apply this 2.95% tracker on the basis of LTV <60%. They looked at my file and confirmed that they would proceed (the LTV from initiation of the mortgage was always <60%)....so, happy I was...for a short while...until I got a letter in a few weeks ago advising me that I would need to provide a formal valuation in order to take advantage of the 2.95% rate and I would be put on 3.65% in the meantime...tricky beggers! Do not take your branch contacts' word that you do not need a valuation, it is up to the mortgage centre and you should have your branch get them to confirm.
 
Marble, tell AIB to put you on their 3.3% tracker (3.14% if your mortgage is over €250,000) pending a valuation.

Thanks DaveD for the clarification, I'll let you know how I get on.
 
I am considering a similar move to the AIB tracker mortgage, however they are requesting a valuation in my case. If I avail of the free valuations offered by the estate agencies, should I tell them that I don't intend selling my house and that I just need it for the bank. Or will I have to play along with them & tell them I'm considering selling?
 
Thanks all for the comments and info, seems 2.95% is their limit (2.99% APR). I've written to my local branch requesting this rate for below 60% LTV and have asked for confirmation in writing as I never a take a banks word for anything. My own account manager says no formal valuation is required but as she had to check with the mortgage centre on rates she may come back with a valuation request also. I won't be impressed if she does.

They didn't seem at all interested when I said I'd be prepared to move to NIB and take all my other accounts with me, I could nearly hear the shrug of the shoulders! Said they'd be sorry to see me go though ;-)

I'm requesting an application from NIB today.
 
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