AIB cut a deal on moving your tracker mortgages
AIB have announced they will be allowing homeowners to move their existing tracker mortgage without having to apply and negotiate a completely new deal.
Previously, many homeowners were putting off moving home, in some cases where they desperately need to, because they didn’t want to lose a lucrative tracker rate set before the boom. Many homeowners had rates of less than 1% over the ECB rate, now sitting at a rock-bottom 0.15%. Giving these up has meant often thousands more in mortgage repayments per year. This has been a significant factor putting homeowners off moving and creating the supply problems that is causing the recent price rises in Dublin.
A New Tracker Deal
From this summer, AIB and EBS customers that are interested in moving will be able to keep their tracker on the same rate, plus an additional 1%. This is still very attractive and will apply to the full remaining period left on the mortgage.
However, if a homeowner was looking to increase their loan, for example if they were trading up, they would have to reapply for a new rate.
Michael Quirke, head of mortgage business development for AIB, said:
“These enhancements to our mortgage offerings further underline our commitment to supporting the residential property market and our customers who are considering moving home.
This is not only a relief for many homeowners who have been delaying their move, but it also is a good sign that the banks understand it is in their power to get this market moving again. They want to write new loans to first time buyers, however there will be no houses for them to buy unless the existing mortgage-holders are able to move.
This brings AIB in line with KBC and Permanent TSB, although KBC will add 1.25% to your tracker rate.