AIB to increase rates, the official message

We have reviewed our Variable Home Mortgage interest rates which are currently the lowest in the market. Our current interest rates are unsustainable due to the fact the interest rates charged on mortgages do not cover the high cost of funding and the cost of servicing the accounts. Based on these considerations, AIB will increase the rate on all Variable Home Mortgage Interest rates by 0.50%, effective from the week of 3rd September 2012.

All impacted customers will be notified in writing week commencing 30th July 2012.  Letters will include the date from which the new rate will apply, details of the old and new rate and the revised repayment amount.

Summary of Variable Interest Rate Changes

Existing Residential Owner Occupier Standard Variable Rate will increase by 0.50 % from 3.00% to 3.50%

Loan to Value Variable Rates for Owner Occupiers will increase by 0.50%

Buy-to-Let Standard Variable Rate will increase by 0.50% from 3.95% to 4.45%

Tracker Mortgage Rates and Fixed Rate Mortgage interest rates remain unchanged

We will issue a revised rates matrix to reflect these changes prior to the 3rd September 2012

Comments

  1. Paul Newsome

    Hi Karl,
    Just found this blog for the first time.
    Scrolling through the page I am in awe
    at how much typing / broadcasting you
    must have done since the property crash.

    If I was to even begin trawling through it
    I’m sure my brain would be fried in no time,
    but as it is all the product of the so called
    ‘Mortgage Industry’, i.e. “one of the institutions
    responsible for driving worker’s home prices up
    by over four thousand per cent in a 15 year period”
    I know that all all your righteous prosletysing on
    behalf of the Property Speculation cabals is merely
    whitewash.

    A Victorian, red-brick, four bed terraced house with
    front and back garden in Bertie Aherne’s Drumcondra was
    sold for €20’000 (twenty thousand) circa 1989. This was
    the typical value for homes on that street at that time.
    In 2007 that same home was valued by an estate agent at
    €860’000 (eight sixty thousand)without one additional
    brick added to the house.

    So whilst worker’s home prices were driven up by over four thousandper cent by the greed of property speculators during
    the Celtic Tiger, that same speculation cabal now tries to tell
    us that that house in Drumcondra, now valued at circa €400’000
    (by speculative professionals) is …’half price’.

    They use the ABnormal 2007 peak-madness price as ‘the norm’ to sell us the ludicrous notion that houses are half price.
    COME ON DOWN – GRAB A BARGAIN-HALF PRICE HOUSES!

    But if they told us that house prices are;
    NOW ONLY 2000% ABOVE THEIR PRE CELTIC TIGER NORM -AND
    CONSEQUENTLY 2000% BELOW THEIR HYPER INFLATED 2007 PRICE!
    then we might be closer to the facts.

    I don’t know what Karl Dieter was doing in the late 1980’s
    because he seems to live in a nether World of statistics and
    jargon spawned by Bertie Aherne’s ‘New Republican Landlordism’
    ideology. Irish History is littered with the ravages of Landlordism and the insidious evil of one citizen owning another
    citizen’s home. In fact every single famine, rising, rebellion in Irish history had landlordism as the core cause.

    If you want to ‘do another survey’ Karl, drive your car the
    15 minutes from the G.P.O. to the M50 junction after Finglas and
    observe the millions of acres of flat, barren, empty, boring
    farmland spreading all the way to the West Coast of Ireland.
    The Property Cabals told us there was a shortage of available
    building land in Dublin/Ireland. Beyond the M50 boundary all
    around Dublin is vast plains of empty farmland, but Dubliners
    commute through this to their dog box semis in far flung Counties.

    Woody Guthrie would have written some good songs about this kind of stuff!
    Regards, Paul Newsome

  2. In the late 80’s I lived in the USA where I am from, and while you make many valid points about several aspects of property and the property industry you are doing so primarily using nominal rather than real comparisons. The average wage today is not the same as it was in the 1980’s, it would be the same as arguing against potatoes because they were cheap in the 80’s and are relatively more expensive now.

    Good locations are not being reinvented, so the land between Dublin and the Atlantic will probably only be good for cows as long as we live, but the property in Drumcondra will still sell for €400,000 – and regular workers will buy them, not ‘industrial average wage’ workers, but people just up from that, because it was never a cheap place to begin with. Sadly the times have changed, and up or down the market is unlikely to return to a house there for €20,000

  3. Hi Karl,
    Just found this blog for the first time.
    Scrolling through the page I am in awe
    at how much typing / broadcasting you
    must have done since the property crash.

    If I was to even begin trawling through it
    I’m sure my brain would be fried in no time,
    but as it is all the product of the so called
    ‘Mortgage Industry’, i.e. “one of the institutions
    responsible for driving worker’s home prices up
    by over four thousand per cent in a 15 year period”
    I know that all all your righteous prosletysing on
    behalf of the Property Speculation cabals is merely
    whitewash.

    A Victorian, red-brick, four bed terraced house with
    front and back garden in Bertie Aherne’s Drumcondra was
    sold for €20?000 (twenty thousand) circa 1989. This was
    the typical value for homes on that street at that time.
    In 2007 that same home was valued by an estate agent at
    €860?000 (eight sixty thousand)without one additional
    brick added to the house.

    So whilst worker’s home prices were driven up by over four thousandper cent by the greed of property speculators during
    the Celtic Tiger, that same speculation cabal now tries to tell
    us that that house in Drumcondra, now valued at circa €400?000
    (by speculative professionals) is …’half price’.

    They use the ABnormal 2007 peak-madness price as ‘the norm’ to sell us the ludicrous notion that houses are half price.
    COME ON DOWN – GRAB A BARGAIN-HALF PRICE HOUSES!

    But if they told us that house prices are;
    NOW ONLY 2000% ABOVE THEIR PRE CELTIC TIGER NORM -AND
    CONSEQUENTLY 2000% BELOW THEIR HYPER INFLATED 2007 PRICE!
    then we might be closer to the facts.

    I don’t know what Karl Dieter was doing in the late 1980’s
    because he seems to live in a nether World of statistics and
    jargon spawned by Bertie Aherne’s ‘New Republican Landlordism’
    ideology. Irish History is littered with the ravages of Landlordism and the insidious evil of one citizen owning another
    citizen’s home. In fact every single famine, rising, rebellion in Irish history had landlordism as the core cause.

    If you want to ‘do another survey’ Karl, drive your car the
    15 minutes from the G.P.O. to the M50 junction after Finglas and
    observe the millions of acres of flat, barren, empty, boring
    farmland spreading all the way to the West Coast of Ireland.
    The Property Cabals told us there was a shortage of available
    building land in Dublin/Ireland. Beyond the M50 boundary all
    around Dublin is vast plains of empty farmland, but Dubliners
    commute through this to their dog box semis in far flung Counties.

    Woody Guthrie would have written some good songs about this kind of stuff!
    Regards, Paul Newsome

  4. Hi Paul,

    thank you for copying and pasting your previous comment, I really enjoyed reading it a second time, please drop by again soon.
    karl

Leave a Comment

Awesome! You've decided to leave a comment. Please keep in mind that comments are moderated.