RSVP: Homeowners could save more than €1k a year as AIB cuts fixed mortgage rates

RSVP: Homeowners could save more than €1k a year as AIB cuts fixed mortgage rates

by MyMortgagesCategories News

“The numbers stack up – switching could save an average mortgage holder anywhere in the region of €275 monthly or €3,300 annually or €99,000 over the life of a fairly average sized €280,000 mortgage over 30 years, with a LTV of less than 50%, by reducing the variable interest rate from 4.5% to 2.75%,” explained Joey Sheahan, Head of Credit at MyMortgages.ie.

“We need to do more to broadcast to every mortgage holder in the country that they could be in line for savings, and to explain to them that the process need not be arduous, complicated or intimidating as they might expect.”

AIB is cutting its fixed mortgage rates in a move that could save homeowners a massive €1,152 a year, based on a mortgage of €270,000 over 25 years.

The bank is reducing its three-year and five-year fixed mortgage rates for the second time in a year from 2.5% to 2.45%, with immediate effect. AIB also reduced its ‘Green’ five-year fixed rate mortgage from 2.5% to 2.45%.

AIB customers, who are currently on their variable mortgage rate of 3.15%, could save €96 a month (€1,152 a year) if they switch to the Green five-year rate, based on a mortgage of €270,000 over 25 years.

Figures from the BPFI say that in the final quarter of 2018 there were 1,684 re-mortgage/switching loans, and experts say more needs to be done to let homeowners know that they could be eligible for savings and that it is not as “arduous, complicated or intimidating” process as they may expect.

“The numbers stack up – switching could save an average mortgage holder anywhere in the region of €275 monthly or €3,300 annually or €99,000 over the life of a fairly average sized €280,000 mortgage over 30 years, with a LTV of less than 50%, by reducing the variable interest rate from 4.5% to 2.75%,” explained Joey Sheahan, Head of Credit at MyMortgages.ie.

“We need to do more to broadcast to every mortgage holder in the country that they could be in line for savings, and to explain to them that the process need not be arduous, complicated or intimidating as they might expect.”

Read the full article on RSVP here –
https://www.rsvplive.ie/news/irish-news/homeowners-could-save-more-1k-21571842


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