NIB raises variable rate by 0.6%

S

Shawady

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My variable mortgage with NIB has been raised by 0.6%.
It now stands at 4.95. Has anyone else received this increase?

I am not in negative equity. Surely there must be better rates if I switch.
 
Hi there - yes letter arrived today. Problem is who will take on a negative equity mortgage and what are the costs with switching! Take a look at the website under mortgage pricing. Its a shocking increase to cover the cost of trackers who are paying a virtual nil rate. High rates, negative equity, property tax and water - I think this is a ploy to get people to move to get people off their loan book - however who will take the mortgage on....
 
For those not in negative equity, here is the post from the site:

Loan to Value (LTV) pricing for existing mortgage customers :

As an existing standard variable rate mortgage customer, you can avail of the new fixed rate mortgages from 4th June 2013:
  • If the Loan to Value on your property is less than 50%, LTV pricing will be at the standard rate less 0.50%
  • If the Loan to Value on your property is greater than 50% and less than 80%, LTV pricing will be at standard rate less 0.30%
 
Nib

With ECB rate at 0.5% - how can NIB justify increasing rates by 0.6% to 4.95% - do they have to get permission from Central Bank or can they charge what they like ? This is 10 times the ECB rate for a variable mortgage rate!!
Whats the best advice for NIB mortgage customers?
 
Calling all NIB Mortgage customers

I've just been looking at the table of rates and NIB are the most expensive in Ireland - are there any NIB customers on this site affected by this?

If so i was thinking we get together and sign a joint petition to force them to stop this increase - why should variable mortgage holders subsidise tracker customers?
I would be very happy to lobby the Central Bank about this as well - anyone interested in stopping this rip off?
 
mugga said:
All the banks are doing this, AIB and EBS have done it---The Government don't seem to care that variable rate customers are being screwed-------The banks seem to be calling all the shots. I'm beginning to think its them who run this country.
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What can the government do -- pour yet more money into the banks to subsidise variable rate customers (and NIB isn't even Irish)? Their stated aim is to return the banks to viability. We can't on the one hand complain about public money being given to the banks to keep them alive, and then complain when the banks do what they have to do to remain commercially viable.
 
Danske

Well maybe there are hundreds of thousands of variable rate mortgage customers who can do something about this - remember the retired people when they tried to take away their medical card??
- we could target all the personal finance journalists for starters and then the Labour Party (God Help Us!!) and the Central Bank - and all other forms of social media

its time to fight back against money lenders charging 10 times rate of money interest
I wonder what interest rate Danske Bank charge mortgage customers in Denmark??
 
danske bank

Thanks Brendan for the info
I've been a mortgage customer of NIB for 7 years -
I stupidly took out a mortgage with them because they had the cheapest fixed rates at the time.

They have no relationship with me other than receiveing my standing order every month - I have never missed a repayment - and yet they think its ok write me a letter and charge me money lending rates of ten times the ECB rate just to make up for all their commercial losses

I am going to fight this one all the way - and will share all the info here on the site.
 
kateball said:
why should variable mortgage holders subsidise tracker customers?
Click to expand...
Don't blame tracker mortgage holders. It was the banks that put these products on the market....tracker products it seems that were untenable but of course, taking in a massive intake of customers with these products at the time would have facilitated big bonuses...
NIB would have been more guilty than most in this regard - as I switched from one tracker which was pretty good (ulster bank) to nib's product - which was the lowest on the market at that time.
 
kateball said:
I am going to fight this one all the way - and will share all the info here on the site.
Click to expand...

I have sympathy for SVR customers, however you signed up to a contract that allowed the bank to adjust rates, and they are adjusting rates. I don't believe you have any legal ground for complaint.

You can of course agitate as a consumer/voter, however I think it is unlikely to succeed. The hierarchy of mortgage holders is well established. The tracker holders have solid contractual agreements, and the government has a well established preference to see even those who can't make their repayments stay in their properties at the banks cost (and retain their trackers to boot).

The SVR holders are the ones to be milked.
 
mugga said:
All the banks are doing this, AIB and EBS have done it---The Government don't seem to care that variable rate customers are being screwed-------The banks seem to be calling all the shots. I'm beginning to think its them who run this country.
Click to expand...
......................................................................................

You should have said , run this country into the ground !!

It does seem that Government still listens to them too much.

It does seem that Central Bank barks away at them and Banks continue to set the Real Agenda.

It does seem that the Financial Ombudsman finds for Banks.

It dos seem that the Consumer Codes are like the 10 Commandments ie more observed in the breech !!!

Rant over {for now}
 
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NIB / Danske probably have the cheapest and most expensive mortgages now...the "LTV Mortage" (can be ECB + 0.5%) and these standard variable products.
 
Nib

Bugler- i may have no legal grounds but the banks would not be alive today but for the taxpayer. Where was the legality in our bank guarantee when we should have let them go bust like any other business.


If we all accepted everything that was thrown at us then we would be a very weak nation.
I will let you know how i get on - I'm looking at their vision and mission statements in Denmark - all about trust and customers first!!
What a joke of a bank
 
kateball said:
Bugler- i may have no legal grounds but the banks would not be alive today but for the taxpayer. Where was the legality in our bank guarantee when we should have let them go bust like any other business.


If we all accepted everything that was thrown at us then we would be a very weak nation.
I will let you know how i get on - I'm looking at their vision and mission statements in Denmark - all about trust and customers first!!
What a joke of a bank
Click to expand...

Danske weren't bailed out by the Irish State. You signed a mortgage agreement which (I'm sure) contained something about your consent regarding possible rate increases. They've lost their shirt on their investment in Ireland plus they've a decent sized mortgage book paying ECB plus 0.5%. My view is that they're entitled to try and make a profit on their activities. Talk of petitions and protests is a waste of time in relation to Danske.
 
Here is their press release

Friday, 31st May, 2013

Danske Bank has today announced a number of changes to its mortgage pricing structure. The new pricing structure is based on the customer’s Loan to Value (LTV) ratio. Under the new structure, customers will be able to avail of variable and fixed rates from 4.45% (4.95% APR). Should a customer opt to open one of Danske Bank’s Prestige or Easy Plus account packages, however, that rate will decrease to 4.00% (4.85% APR) and 4.25% (4.91% APR) respectively. These rates remain among the most competitive mortgage rates in the market today.

The new fixed rate pricing structure comes into effect on the 4th June while the new variable rate options, which are available for new mortgage business only, come into effect on the 8th July.

Danske Bank is also increasing its existing Home Loan Variable Rate, Standard Variable Rate (SVR) and Investment Mortgage Rate from 4.35% (4.44% APR) to 4.95% (5.07% APR) with effect from the 8th July. Existing customers can choose to switch to one of our two, three or five year fixed rate options or they can reduce the rate increase by either 0.20% or 0.45% by moving to the Bank’s Easy Plus or Prestige packages. In addition to reduced mortgage rates, these packages offer competitive rates on overdrafts and credit cards, credit interest on credit balances and higher rates on savings products.

Danske Bank remains committed to providing customers with products and services that are competitively priced and reflect the cost of providing that product or service. The changes, which are the first the Bank has made to these rates since 2011, do not affect the Bank’s existing Fixed Rate and Tracker mortgage holders.

Danske Bank is writing directly to any affected customers to advise them of the changes. However, if a customer has any queries, they should contact the Bank at 1890 866 866, or directly via the eBanking service.
Click to expand...
So the rate can be reduced by 0.45% by opening a [broken link removed]

for €128 a year, this would be well worth doing.

Is there any reason a mortgage holder with a mortgage of at least €28,000 would not open a Presige Account?

It looks to me as if the nominal SVR is artificially high as it's so easy to get a discount.

It seems easier to open a Prestige Account than to try to get the government or Central Bank to take action.

  • Competitive interest rate paid on credit balances, with no limits
  • Preferential interest rate on your savings
  • ATM card with Laser, Maestro facilities
  • No transaction or referral fees
  • MasterCard Platinum credit card at same rate as your overdraft
  • Free Priority Pass, giving access to 600 VIP airport lounges around the world
  • Overdraft with no set-up fee
  • Free travel insurance benefits for you and your family
  • Access to Direct Banking services – eBanking, 24/7 Telephone Banking and Customer Support Team
  • May be eligible for a preferential home loan discount rate on your mortgage interest rate. Terms and Conditions apply, salary or equivalent regular income required to be mandated to the account. Loans subject to credit assessment.
Click to expand...
 
nib

Hi Sean -- I am a customer of NIB and deserve to be treated fairly.
If not I will lobby and petition and go as far as i can - i dont need your support.
Of course I know Danske were not bailed out by the Irish Government - why would they want to bail out a Danish bank??
Just because they lost their shirt on Irish property doesnt entitle them to rip off their Irish customers.
I am looking for people to support me on this - not shy away and let the banks do what they want which is what you are implying.
 
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