# IIB ECB rate drop



## Newbie! (28 Oct 2008)

Hi,

Has any homeloan customer of IIB heard anything from them regarding the recent ECB interest rate drop? We are variable rate customers and havent heard anything and cant get through on the phone. Does anyone know when it will be applied?

thanks.


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## tml (28 Oct 2008)

It will be passed on in your December repayment - variable rate is reduced by 0.5%


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## sukiesue (30 Oct 2008)

hmmm... I have a tracker mortgage with them and have also heard absolutely nothing.

If it's december then I'm going to be very p%$# off with them!

Anytime the rate has gone up in the past 2 years, even if the rate went up after my mortgage payment had gone out, I've gotten a letter from them the following month saying they were taking a back payment from me for last month's missing amount (????)

If you do that, then you really have to do it in the other direction as well or else you're not an upstanding & reputable business IMO 

Absolutely disgraceful what they're allowed to do to us!


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## tml (30 Oct 2008)

Not sure about tracker rates, the email we got just specified the 0.5% reduction in the Standard Variable rate - effective as of 1st November but wont be seen in repayments until 1st December


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## bamboozle (30 Oct 2008)

Very disappointed with IIB/KCB, if it was a rise there would be no delay in passing on the extra cost to mortgage holders.


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## sukiesue (31 Oct 2008)

It's gotten on my wick enough to make me want to move mortgage to other bank! I'm going to wait and see how they behave with the next rate drop...


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## demoivre (31 Oct 2008)

sukiesue said:


> It's gotten on my wick enough to make me want to move mortgage to other bank! I'm going to wait and see how they behave with the next rate drop...



The problem with moving is that the tracker that you have is rapidly becoming a thing of the past so you might not be able to get another one. There is no guarantee that future likely rate reductions will  be passed on ( at all or in full ) to standard variable rate products whereas they will be passed on to trackers even though there might be a time delay.


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## PaddyW (3 Nov 2008)

I'm on a 5.24% fixed rate with IIB. Would it be worth breaking this now to catch the rate cut? Rang last week and at that time they said it would cost nothing to break the fixed rate agreement, but may next time I enquired.


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## Harry.Ginder (3 Nov 2008)

Hi,  anybody who has a tracker mortgage will see the ECB rate reduction in their next monthly repayment, automatically, because the tracker is linked to the ECB rate.
If you have  tracker mortgage, keep it as they are almost extinct!
Harry


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## brian.mobile (10 Nov 2008)

Indeed, IIB darken my letterbox days after interest rate hikes. ..not so quick on the reductions.

I was hoping our government would wave their 'big stick' on this one....didnt they?

BM


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## stuart (11 Nov 2008)

Spoke to them today and they eventually have an exact answer

Rate cuts from October started from 1 November and will be reflected in 1 Decmeber payment, as mortgage payment is in arrears

Will not be backdated to the actual rate cut announcement, unlike increases which are, as per a "managment decision"

Once off is €1.37 per day per €100k borrowed for a 0.50% rate cut

That's 22 days (from 9th October to 31st October) at €1.37 which €30.14 per €100k borrowed

And then repated for the current month, roughly same date

And with almost every economist predicting at least 2 more similar cuts of a similar size, it is starting to look like the banks are saving a lot more than they are pretending

A typical €300k mortgagee will lose out on roughly €360 if the further two cuts are passed on the samw way

Stuart


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## Breaker (11 Nov 2008)

i still have not got the letter stating what was going on. So I called them up today. As previous post says, the .5% cut is effective from 1st Nov & not 9th Oct. Letters will be sent out this week. 

Apparently they have 30 days grace before they have to pass on the rate. I think i will check my contact anyway to make sure.

Its disappointing becasue all other banks gave the cut from the 9th oct on their tracker mortgages, i think anyway.


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## Kagy (11 Nov 2008)

Breaker said:


> i still have not got the letter stating what was going on. So I called them up today. As previous post says, the .5% cut is effective from 1st Nov & not 9th Oct. Letters will be sent out this week.
> 
> Apparently they have 30 days grace before they have to pass on the rate. I think i will check my contact anyway to make sure.
> 
> Its disappointing becasue all other banks gave the cut from the 9th oct on their tracker mortgages, i think anyway.



just checked my statement, have a tracker with UB. they are not passing on the cut until 1st dec. all the increases were passed on the same day they occured. there's nothing in my contract about when they have to pass on the cut >:-/


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## NorthDrum (11 Nov 2008)

Anybody hear about First Active on radio today?

Apparantly they were only offering the rate cuts to customers who sent in a letter requesting that they get the cut! 

Technically they were correct by saying that they are passing on the rate cut to their customers but they neglected to tell their customers that they wouldnt receive the rate unless they received a written request from them!

How can that be right ? ?


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## Dave Vanian (12 Nov 2008)

NorthDrum said:


> Anybody hear about First Active on radio today?
> 
> Apparantly they were only offering the rate cuts to customers who sent in a letter requesting that they get the cut!
> 
> ...


 
Didn't hear that but would be fascinated to hear more. 

I wonder did it refer to the First Active Offset Mortgage and get misunderstood. Offset customers are on a tracker interest rate, so they do get the benefit of rate cuts. But their monthly repayment doesn't get automatically reduced unless they specifically request it, so with every rate cut, Offset customers are overpaying.


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## PaddyW (12 Nov 2008)

My brother and his wife are on a variable rate with FA and they got the rate cut. Don't think they sent in a letter to get it though. I'll check that out though.


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## NorthDrum (12 Nov 2008)

In all fairness, that information about F.A. was just the last call or so on a radio show about the Interest rate cut. There was no chance for F.A. to reply so I could not confirm if it was the case for all their customers.

Just wondering if anybody else had heard about this (the show was lunchtime on newstalk as a reference!).


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## fobs (12 Nov 2008)

We are with First Active on a tracker and received notice in the post of our rate cut (applying from 1st November) and we didn't have to request in writing. Think this need to request applies to offset mortgage only.


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## NorthDrum (12 Nov 2008)

fobs said:


> We are with First Active on a tracker and received notice in the post of our rate cut (applying from 1st November) and we didn't have to request in writing. Think this need to request applies to offset mortgage only.


 
That probobley explains that then, thanks for that.


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## larbo (13 Nov 2008)

Good news for some i'm stuck on fixed for another 18 months.


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## rameire (14 Nov 2008)

regarding the offset mortgage, the person on the talkshow is incorrect, 
the rate for the offset is reduced inline with the ecb rate which was announced on the 9th of oct, but the ecb did not implement until the 15th of oct, the peoples repayments will stay the same unless the mortgage holders request the repayment to be reduced.

also to the rest of you the banks can reduce the rates on their mortgages inline with what their terms and conditions say, 
honestly you have nothing to complain about as you signed the loan offers which means you signed up to the t's & c's.


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## Newbie! (14 Nov 2008)

Hi, we were away last week when the ECB rate was cut once more and we missed all the discussion around it. I've just read this article ([broken link removed]) from the Times which says that all banks were passing it on but IIB/KCB still hadnt confirmed. 

Does anyone know if a decision was made yet?

thanks.


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## Newbie! (17 Nov 2008)

Just in case it's any use to anyone else here, I got this email from IIB today:

I can confirm that the interest rate on your account was reduced on the 2nd November and will therefore be in place for your 1st December repayment. Please note that your November payment is collected on the 1st December as payments on your account are collected in arrears. 
The interest rate cut of the 6th November will be effective on your account as of the 2nd December and will be reflected in your 1st January 2009 repayment.


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## brian.mobile (19 Nov 2008)

We got our letter today from our friends in IIB (now KBC). Drop in effect from Dec 1.

The second drop will come in a 'second letter' most probably a month down the road....

BM


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## Gondola (20 Nov 2008)

We got a letter as well, it contains detail of the first rate cut (KBC reference the announcement in the press dtd 29th Oct) which came into effect on Nov 1st. 

The letter then goes on to say that a further cut - announced by ECB in November - of .5% will be passed on in full with effect from 1st Dec.

It all seems very smooth!


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## cookie (20 Nov 2008)

Has anyone got a link to a graph of interest rate movements in the last year or 2 ?

It would be interesting, Ill try google it now.......


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