Its a start to more equitable rates-wonder if the rest will follow-suppose they will have to given the CB imminent starvation of potential new business-they will be cutting each other up to get the competitions existing bidness.
Not to be underestimated, this will put more money than any of the budget measures in plenty of people’s pockets compared to the year before (including my own). Could really help domestic demand.
When I first saw this I thought it was an effort by aib to prop up the market by softening the blow of the cbi moves to take some heat out of the market. Maybe I am just wearing my tin hat for too long.
Between the budget, a cut in property tax for our area, and this interest rate cut, we’ll have 2k more discretionary income in 2014 than we thought we would.
These small bumps always have a big effect. 100/month doesn’t sound like a big raise, for example, but if you’re entertainment/discretionary budget is currently 400/month after mortgage, savings, bills etc, then it’s a big bump.
We’ve worked hard on our budget over the last 7 years and absorbed cuts by cutting expenditure to maintain our savings rate. The 2k we didn’t budget for next year, we will certainly spend or at least save towards big ticket expenditure.
If the other banks now follow suit it’s very good for momentum in the domestic economy
In the very short term, sure. But if you start from the position that AIB is f*cked, then any discount they pass on to their customers will probably result in higher taxes down the line.
Have you not reviewed your starting position in light of the ECB stress tests
Posted similar here viewtopic.php?f=19&t=11968&p=798082#p798082 actually.
Looking for some help on this topic. Do I have a leg to stand on in any way here. If anyone has any information on this it really would be great.
I have signed and started a 3 year fixed with Haven at 4.2% as of the 7th October it seems. This is the draw down date by my solicitor. The sale did not actually complete until the 17th October. Of course I have not had any payments as of yet. Since 30th October they have now launched 3.8% rate which of course I WANT !!!
Is there any way I can avail of this rate considering I have not even paid my first mortgage payment yet ? e.g. cooling off period or ANYTHING else…
Thanks for the help
I don’t fancy your chances to be honest. If you already signed a fixed rate arrangement on top of your mortgage schedule, I can’t see why they’d release you from that obligation to avail of the cheaper rate. The fact that you haven’t made your first payment is neither here nor there, as interest will be calculated from the time you draw down, and is already accruing in your case.
Any cool down period would presumably be on the loan itself, i.e. if the sale didn’t close you could return the funds without penalty and not go ahead with the purchase.
I know it’s a bit shit, 0.4% can add up to a fair whack each month, but you wouldn’t like it if the bank came along and said “Oh sorry, our fixed rates went up and since you haven’t made a payment we’re availing of a cooling off period and sticking you in at 4.6%”. You’d rightly point to your contract.
I’ve drawn down with AIB recently and they did mention their “great fixed rates” to me but we decided to skip the 1 year new business rate (now as low as 3.5%) for a 4.49 variable interest rate (LTV > 80%) which is now 4.25, and play it by ear until our (deferred 3 months) payments begin. I’m giving consideration to the 3.8% now, even though it might go lower, because it will give stability.
Don’t beat yourself up about it. You presumably signed up for the fixed rate so you’d have a stable mortgage payment for a few years. You have this stability now, and the rate could have just as easily swung in the other direction after the stress tests.
Can I ask why you skipped the 3.5% 1 year fixed?? Surely a no brainer…
Good bloody question. It was a long enough process (buying, that is) and I wasn’t offered 3.5% at the time I was being quoted rates, or I’d have taken it, it was in the region of 3.9 and I wasn’t willing to fix at that; I neglected to keep up to speed on the offered rate, with all that was going on, which is very wasteful on my part.
Anyone else think this is quite a huge move? They’re offering some very tempting rates to fix for 3 and 5 years. Do you think we can expect new players with much lower offering rates to enter the market in the next 3 years?
No idea but looking at from an amateur prospectve why would someone lend into the Irish market at these rates when mortgage lending is, in effect, non recourse
It’s voluntarily non-recourse.
New entrant can easily do recourse if they can stand the heat.
The heat may have burned itself out…
…and perhaps the most righteously indignant in society have moved on (with the media spotlight) to water meter campaigning.
Remember septic tanks and property tax?
The can’t pays/won’t pays have been in a symbiotic relationship with the banks whilst negative equity persists, but eventually it’ll all shake itself out.
Does it say anything re cooling period in your contract?