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.

 

Fixed Rate

With a Fixed Rate, the rate and repayment remains the same for the period chosen (typically over 1 - 7 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.

View our Mortgage Interest Rates

 

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.

View our Mortgage Interest Rates

 

For information on the AIB Variable Rate Policy Statement please click HERE

 

Important Information for Existing Customers

 

Availability of LTV Rate Bands

  • If you wish to choose one of our LTV rate bands and have never availed of one before, you will need to provide us with an up to date valuation report* to support your request.

  • A new valuation report is not required if you are currently on a Standard Variable Rate (SVR) and:

    • you would like to avail of the applicable LTV rate band that is based on the original valuation provided at the time you first drew down your mortgage or;

    • you wish to choose the >80% LTV rate band.

 

LTV Rate Band Exclusions:

  • It is important to note that once an LTV rate band is applied to a mortgage account, then movement between different LTV rate bands is not permitted.

  • Also, if you had an LTV variable rate band at any time on your mortgage previously then that particular LTV variable rate band is the only one available to you during the life time of the mortgage.

 

*We need a valuation to ensure you qualify for the relevant LTV Variable Rate.  Please note that you are responsible for the cost of the valuation report.  The valuation report must be supplied from one of AIB’s Residential panel of valuers.

 

Split Rate

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.

View our Mortgage Interest Rates

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