Mortgage Interest Rates? Whats the difference?

When you’re thinking of getting a mortgage, the choice of interest rates available can seem confusing. But it doesn’t have to be. At AIB, we aim to offer our customers a range of interest rates that gives you the flexibility to suit your lifestyle and budget. Read on to find out what mortgage interest rate options may be available to you.

What is a Fixed Rate?

Fixed Rate means that the rate and repayment remain the same over an agreed period (usually between one to ten years), even when market rates change. This means that you will be protected from any rate changes that could increase your repayments but you also won’t be able to benefit from any favourable rate changes. It’s important to remember that you may incur a breakage cost if you want to switch out of a Fixed Rate before the agreed time has ended. And don’t forget, once the time period agreed for the Fixed Rate has ended, you’ll be able to choose a new Fixed Rate or change to a Variable Rate.

What is an LTV Variable Rate?

An LTV (Loan to Value) rate is a kind of variable interest rate. The LTV rate is determined by the amount you are borrowing in relation to the value of your property. To figure out your LTV, you simply divide your mortgage amount by the value of your property and multiply by 100. For example, if you are buying a property valued at €300,000 and you are borrowing €150,000, your LTV is 50%.

What is a Split Rate?

A Split Rate allows you to split the difference between a Fixed and Variable rate by dividing your mortgage between the two types of rate in a proportion of your choice. This lets you benefit from the advantages of each rate, without committing totally to either.

What if I’m buying my house to let out?

If you’re buying a residence for investment purposes and don’t intend to live in it, you can avail of our Buy to Let Standard Variable Rate or our Fixed Rate BTL Mortgage for up to 5 years, these are available to new and existing BTL mortgage customers.

Can I get a different type of interest rate?

It’s always a good idea to review your mortgage on a regular basis and explore alternative interest rate options that may be available to you. For example, you may be able to choose a fixed interest rate for all or a portion of your mortgage for an agreed period of time. To make things easier for you, we let all our mortgage customers know if there are lower interest rates available on an annual basis.

Want to Find Out More About AIB Mortgages?

Ready to apply? Use our online mortgage calculator to find out how much you could borrow right now. You can find out more about the different types of mortgages we offer on our website.

Some of the links above bring you to external websites. Your use of an external website is subject to the terms of that site. Allied Irish Banks, p.l.c. is an authorised agent and servicer of AIB Mortgage Bank in relation to origination and servicing of mortgage loans and mortgages. AIB Mortgage Bank is regulated by the Central Bank of Ireland.

Allied Irish Banks, p.l.c. is regulated by the Central Bank of Ireland. Copyright Allied Irish Banks, p.l.c. 1995.