AIB Mortgages (Allied Irish Banks)

AIB Profile

Allied Irish Banks (AIB) provide a number of mortgage options to cover the needs of most people seeking mortgages. AIB offer more financial services than just mortgages, of course, and were originally formed to combine the different strengths of three banks to produce an amalgamation significantly stronger than the sum of their parts.

At that time, the Irish banking system was disunited, and the amalgamation was considered a means of meeting the needs of an Ireland that was undergoing dramatic change. Of the three, the Munster and Leinster possessed the widest network of branches, and the Provincial Bank was the bank that provided the very first branches in Ireland in 1825.

The third member of the alliance, The Royal Bank, was useful for its commercial and mercantile activities, and together, the three were able to meet the needs of a modern banking presence in a global market. Known as AIB, rather than its full name, the alliance offers a wide range of corporate and personal banking services, and is the largest commercial bank in Ireland operating from Dublin’s International Financial Services Centre and from its offices at Bankcentre.

By means of a 24.3% interest in the M&T Bank in the USA, and also its Polish operations, AIB has a much larger international presence than any of its Irish competitors, and also possesses note issuing powers in Northern Ireland and has a subsidiary in the Channels Islands and in the Isle of Man.

The TSB in Northern Ireland was acquired in 1991, and seven years later the AIB Group (UK) plc was created, trading as Allied Irish Bank (GB) in Great Britain, and as First Trust Bank in Northern Ireland. The AIB were the primary sponsors of the Ryder Cup at the K Club in County Kildare in 2006.

However, because the AIB depends to a great extent on the stability of the international financial markets for its liquidity, the 2008 drop in share prices led to a massive drop and by the beginning of 2009, its capital value had dropped dramatically. The Irish government stepped in with a $7 billion rescue package for AIB and its main competitor, the Bank of Ireland which, together with a guarantee by the government on its debts, renders AIB in a much more secure financial state than many of its competitors.

AIB Mortgage Offer

First Time Buyers & Young Professionals Mortgage Packages

The range of mortgage products offered by the AIB include a First Time Buyers package, that offers various options including an interest only option and a 3-month deferred start with an interest rate of 2.4%. They also offer a special package for young professionals purchasing their first home at the same interest rate, but with some attractive offers such as 100% finance, interest only for up to 5 years, and a number of interest rate options.

A deferred start is available, whereby no payments are made for the first three months, the interest due for the period being added to the mortgage. This allows first time buyers the opportunity to purchase furniture and equip and decorate their new home without the added expense of paying the mortgage. AIB understand the stresses young people are under at this time in their lives, and do their best to help. This option is not available if you are paying under an interest only deal, because that in itself saves you money.

Owner Occupier Mortgage

AIB also offer special mortgage packages for owner occupiers and those who are buying to let. There is again a range of repayment options available with a number of interest rate options. Owner occupiers are offered up to 92% mortgages and ‘buy to let’ 85%.

Currently the standard rates of interest vary from 2.25% - 2.65% depending on the size of your deposit, and also a number of fixed rates ranging from 2.85% for one year to 4.65% to 10 years fixed. Whether these are good deals or not only time will tell, and whether or not you go for a fixed rate depends upon your personal projection of how interest rates will change in the future.

Residential Buy-to-Let Mortgage

All in all, however, AIB offer a good range of mortgage packages and interest rate options, and even offer an option for parents to either sign as guarantor or become a co-partner in paying the loan. This is popular where young couples are not yet earning enough to afford the home of their choice, and their parents either want to help with the payments or guarantee a package such as an interest only deal.

Interest Rates in AIB

Mortgage Type	Rate	APR	Cost per €1000
LTV VARIABLE <=50%	2.50 %	2.53 %	5.300
LTV VARIABLE >50% <=80%	2.70 %	2.73 %	5.390
LTV VARIABLE >80%	2.90 %	2.94 %	5.490
1YR FIX EX	2.85 %	2.57 %	5.470
1YR FIX FTB NEW	2.40 %	2.52 %	5.250
2YR FIX NEW & EX	2.80 %	2.59 %	5.440
3YR FIX NEW & EX	3.10 %	2.71 %	5.590
4YR FIX NEW & EX	3.45 %	2.90 %	5.770
5YR FIX NEW & EX	3.69 %	3.10 %	5.890
10YR FIX NEW & EX	4.41 %	4.07 %	6.270