AIB advertised their mortgages extensively. Therefore, the first thing you notice when you visit their website is a section on mortgages. They have an appealing and good structured website where you can find a calculator, make an appointment, and learn some information about your situation. A video about a couple who obtains a mortgage from AIB is also available. In this video, the clients explain how that works. They claimed to be extremely glad to accept the mortgage from this bank because everyone there is polite and helpful. AIB has professionals that can explain everything to you about mortgages and your options. They also have an App that gives clients a good overview. Additionally, the fact that clients can upload their documents from home makes everything simpler for them. You may find a wealth of general and situation-specific information on mortgages on their website.
AIB has a community spotlight on their website where you can watch a video about the important work being done for the local community and the advancement of the transition to a sustainable living. They support their partners and the wider community with 10M€ in 2021. Therefore, if you take out a mortgage from AIB and you intend to rent out the property, your standard variable rate is 4.85%. The cost is higher if you wish to fix the rate; the highest rate is 6.85% for a 5-year fixed. Rates are less expensive if you own your property. If you choose the variable rate and the loan is for 50% to 80% of the total cost, your rate will be 2.95%. The terms are the same whether you fixed your rates for three or five years. You receive 3.70% even if you have the highest rate for a 10-year fixed loan. The green loan offers the lowest interest rate, which is fixed for 5 years. To qualify, you must have a Building Energy Rating (BER) certificate that is no more than 10 years old and falls between A1 and B3. It does not matter if you are a first-time buyer or a switcher or if you want to continue your loan after your fixed term is expired.
ECB raise their rates very fast and with big jumps so everyone with a mortgage is unsettled because they do not know what that means for them. ECB hiked the rates by 1.25%, which means the three and five-year fixed rates will rise to 2% for new customers. If you fix your rates for a longer period of time, say 10 to 25 years, the increase is not as significant. Customers can breathe for the first time, because AIB, Bank of Ireland and Permanent TSB did not raise their rates in response to the ECB rate hikes. But they cannot keep it up for long, therefore they may quickly raise their prices as well.
This post was written by Jo Marie Fuchs who was a research intern at Irish Mortgage Brokers in October of 2022.