AIB charges interest on the reducing mortgage balance. It is calculated on a daily basis and charged quarterly in arrears. This means that you gain the full benefit from your repayments immediately when they are made.
With a Fixed Rate, the rate and repayment remains the same for the period chosen (typically over 1 - 10 years), even when market rates fluctuate. Once the term chosen for the Fixed Rate has ended, you can opt for another Fixed Rate or choose an appropriate Variable Rate.
While Fixed Rates offer certainty of repayments and protect you from interest rate increases they also mean you will not benefit from any rate cuts that occur during the fixed period chosen. Neither will you have the flexibility to break out of the Fixed Rate without potentially incurring a breakage cost. For further information please click Home Mortgage Regulatory Information.
If you avail of a Fixed rate option, at the end of the Fixed rate period, you will have the option of moving to a Variable rate or choosing a new Fixed rate term. If we do not receive an instruction specifying your preferred interest rate option, the rate will revert to the banks prevailing Standard Variable rate.
Note: If you chose to convert a loan from a Tracker rate to a Fixed interest rate, at the end of the Fixed rate period, you will only have the option of moving to a Variable rate or choosing a new Fixed rate term. The original Tracker rate will not be available.
Green 5 Year Fixed Rate
If you are buying or building a high energy rated home, we are offering a new, lower rate of interest.
Our new Green 5 Year Fixed Rate is available to you if:
- You are a new customer building or buying your home (Private Dwelling Home mortgage) with a BER rating between A1 and B3.
- You already have a mortgage loan with us, your home has a BER rating between A1 and B3 and you’ve more than five years left on the loan.
- You already have a mortgage loan with us and you want to top it up to get your home to a BER rating between A1 and B3.
For more information on Green 5 Year Fixed mortgage interest rate click here
Standard Variable Rate
With a Standard Variable rate, your monthly repayments may rise and fall over the life of your mortgage. A Standard Variable rate gives you the flexibility to make early repayments or lump sum repayments and so reduce the overall cost of your mortgage. There is also the option of changing to a Fixed rate.
For Owner Occupiers the Standard Variable rate is only available upon maturity of a Fixed Rate. However all Buy to Let customers can avail of the Standard Variable rate.
LTV (Loan to Value) Variable Rate
Our suite of LTV Variable rate bands are available for all new Owner Occupier Mortgages.
Loan to Value, what does this mean?
Loan to Value or LTV is the amount that you are borrowing relative to the value of the property you are buying. To calculate your LTV, simply divide your mortgage amount by the value of the property and multiply by 100. For example, if you are buying a property valued at €400,000 and you are borrowing €200,000, your LTV is 50%.
An LTV Variable rate is a type of variable interest rate. We have a range of LTV Variable rates bands you can choose from, depending on the amount you are borrowing relative to the value of your home. With an LTV Variable rate, your monthly repayments may rise and fall over the life of your mortgage.
An LTV Variable rate offers you the flexibility to make early repayments or lump sum repayments during the life time of your mortgage. The advantage of making early or lump sum repayments means that the overall cost of your mortgage reduces. There is also the option of changing to a Fixed rate at any time.
For information on the AIB Variable Rate Policy Statement please click HERE
Important Information for Existing Customers
Change the Loan to Value (LTV) on my current Mortgage
You may have the option to move to a lower LTV band as the loan to value on your current PDH mortgage reduces.
Before you can move to a lower LTV band, you may need to provide us with an updated full valuation report. There are a couple of points you should be aware of:
you are responsible for arranging the valuation report and for the cost.
the valuation report must be dated within the past 6 months.
the valuation report must be completed by an approved valuer from the AIB Residential Mortgage Valuer's Panel.
Prior to ordering a valuation report we recommend that you check the Property Price Register(www.propertypriceregister.ie) and or DAFT to help you understand what similar houses in your area have been sold for recently. This will help you estimate your current Loan to Value position.
To calculate your Loan to Value: Divide your mortgage loan balance(s) by the value of your property and multiply by 100 e.g. €280,000.00 ÷ €350,000.00 x 100 = 80% LTV
You won’t need to provide a valuation report if any of the below scenarios are relevant to you:
If you choose an LTV rate for the first time on your mortgage account and the LTV rate band is the same as the original loan to value ratio of your mortgage account at the time of drawdown; or
If you choose the same LTV band that was previously applied to your mortgage account; or
If you choose a >80% LTV band
To request movement to a lower LTV band you will need to complete the Mortgage Amendment Form, ensuring it is signed by all parties to the mortgage. Your request and valuation report, where required, should be sent to us at AIB Home Mortgage Operations, Accounts Section, 1 Adelaide Road, Dublin 2.
Split Rate - Available for New Mortgage Customers Only
A 'Split Rate' gives you the option of dividing your borrowings between Fixed and Variable rates. This enables you to benefit from the advantages of each rate in whatever proportions you choose.