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We’re pleased to have signed up to the commitments in the Mortgage Charter: www.gov.uk/government/publications/mortgage-charter/mortgage-charter

As part of the Mortgage Charter there are a number of options available to you which may make paying for your mortgage easier.  Changing to one of these options won’t affect your credit score and you won’t have to complete an affordability assessment.

Get peace of mind by securing a new rate up to 6 months before your current one ends.

✔ We will write to you when your deal is coming to an end.  

✔ Call us on 0345 600 5925 to talk to our expert Mortgage Advisers who will take you through the deals that are available to you.   

✔ Once you’ve accepted your new deal, you can change to a new one on a like for like basis, up to 2 weeks before your current deal ends.  

Call me back to discuss options available

You can apply to make interest only payments for 6 months to reduce your monthly payments and help get you back on track with no impact on your credit score.

✔  For six months you will only pay the interest on your mortgage.

✔  When the temporary interest-only period finishes, your payment will cover both the interest and the capital again, but your payments are likely to be higher.

✔  By switching to interest only payments for a 6-month period, you will pay more interest over the term of your mortgage .

✔  If something changes and you would like to return to repaying both capital and interest during this 6-month period, you can contact us to arrange this.

For an illustrative example of how this option works please see below

Apply now

You can apply to extend your mortgage term to lower your repayments with no impact on your credit score.

✔ By increasing the length of your mortgage, you will lower your monthly payments.

✔ This will give you more flexibility by reducing your payments, but you will pay more interest overall.

✔ You will be able to extend your term up to AIB’s maximum permitted term of 35 years for the mortgage on the property that you live in and 25 years for a second home or holiday home. Your new extended term must not take you (or any one of you, if you have a joint mortgage) past your expected retirement age or your 71st Birthday (whichever is lower).”

✔ You can contact us within 6 months and revert to your original mortgage term with no affordability checks

For an illustrative example of how this option works please see below

Apply now

If you are a customer considering either Interest Only or seeking to extend your term, please see the below representative examples. The below is for illustration purposes only.

Should you decide to proceed with any of these options, we will write to you with illustrations based on your circumstances to allow you to make an informed decision.

Representative Examples:

Scenario A – Cost of mortgage for a mortgage with no amendments made.
(The figures in this scenario are also used for scenario’s B &C)

  • Loan value: £203,413
  • Loan term: 28 years
  • Loan Type: Fixed rate for 2 years, reverting to standard variable rate for the remaining term
  • Initial monthly repayments: £1,395.29, followed by a repayment of £1,494.58 for the remaining term
  • Fixed rate: 6.99% for 2 years
  • Standard variable rate: currently 7.75%
  • APRC (annual percentage rate of charge): 8.08%
  • Number of monthly instalments: 336
  • Fees: The following fees are included in the calculation for this example:
    • Valuation fee £200
    • Funds transfer fee, £30;
    • Mortgage exit fee, £55;

If the rates do not vary during the term of the mortgage, the total cost of credit (the total amount repayable less the amount of the mortgage) would be £296,667.92. This means that the borrower would have to pay a total amount of £500,080.92.

Scenario B – Cost of mortgage if opting for interest only for 6 months, what changes
In this example the 6-month interest only period is during the 2 year fixed rate period.

  • The monthly repayments: £1,184.89 during the 6-month interest only period, reverting to £1,403.71 for the remaining 18 months of the fixed rate period and £1,503.60 for the remaining term.

If the rates do not vary during the term of the mortgage, the total cost of credit (the total amount repayable less the amount of the mortgage) would be £ 298,371.32. This means that the borrower would have to pay a total amount of £501,784.32.

Scenario C – Cost of mortgage if opting for a term extension. what changes?
In this scenario the term is amended from 28 years to 35 years

  • The monthly repayments: £1,307.78 for the 2 year fixed term, followed by a repayment of £1,414.45 for the remaining term.

If the rates do not vary during the term of the mortgage, the total cost of credit (the total amount repayable less the amount of the mortgage) would be £388,821.92. This means that the borrower would have to pay a total amount of £591,793.92. 

These options may be available to you if:

  • You’re up to date with your mortgage payments
  • You have a personal residential mortgage (not buy to let)
  • Your mortgage is not already interest-only – you can’t extend the term of an interest-only mortgage
  • You haven’t previously extended your term or switched to interest-only on this mortgage account under the Mortgage Charter

Here’s the information you need to know

If you’ve got a joint mortgage, you’ll need permission from any other account holders to apply.

You can only choose one of interest only or a term extension under the Mortgage Charter, not both.

Once we receive your request form, we will provide you with a personalised illustration. You will need to sign and return this at least 15  days before your next payment is due. If we receive it after this date, your changes will take effect from the next months payment.

If you choose any of the Charter options and miss a payment, your credit score may be affected.   If you are worried about missing a payment,  the sooner you get in touch with us, the sooner we can help Worried about payments? - AIB (NI) Personal Banking (aibni.co.uk)

We’re here to help

It’s important to make sure that any changes you make to your mortgage are right for you and your circumstances.  Talk to us by calling
0345 600 5925 and one of our dedicated team will talk to you about your options. We’re open 09:00 – 17:00, Monday – Friday, excluding Bank Holidays.

If you are worried about the rising cost of living and making repayments, there is a wide range of support available. The most important thing to do is talk to someone who can help. We’ve supported many customers in the same position.

Visit aibni.co.uk/help-for-when-it-matters-most

 In addition to our dedicated teams, independent information is also available through a number of free and confidential services. You’ll find a few of these on aibni.co.uk/worried-about-payments

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