AIB currently have four lending channels, there is AIB direct (their branches), AIB Broker (via the Ballsbridge HQ), EBS (done through branches and administered via the AIB direct system) and finally Haven Mortgages (another broker channel currently still located in the old EBS offices on Burlington Road).
There are four channels all operating off of the same credit pricing and all with different rates! Meaning where you choose to apply will make a big difference, even though under the hood you are getting an identical product. This is a classic example of having a brand name product sold at one price then the ‘own brand’ which is made by the same people as the first one, put into a different package and sold at a different price.
At the moment Haven only lend up to 80% meaning you need a 20% deposit, EBS have gone up to 92% which matches them with AIB (direct and brokerage), so the next rational step is for Haven to go to 92% which we are tipped off will be happening in Q1 of 2013, for now the combination of rate offering and LTV has them effectively out of the market.
In terms of pricing AIB direct/Broker sells money at 4.24%, while EBS existing SVR is 4.33% and their higher LTV rate (Tiered Variables or TVR’s) is at 4.45% showing a difference in pricing.
The other thing we are hearing is that PTsb plan to return to the market in 2013 and some lenders will be upping their LTV in cities (where at present they are doing the 80% loan ‘we’re open for business we swear‘ jig and dance).
That AIB are ahead of their lending targets makes me wonder if they took in any EBS/Haven figures for their grand total (I don’t currently know), but the ramping up of all channels means that perhaps, at long last, we’ll see credit expansion again in 2013, and we’ll probably need it because otherwise we might make a market trend lower that doesn’t need to (due to low credit availability), at the same time as watching the government try to double whammy of removing TRS while introducing property tax.
On the latter, we are waiting to see what the concession is, because there is bound to be one!