# ECB cuts interest rates by 0.5 points



## sandrat (15 Jan 2009)

http://www.rte.ie/news/2009/0115/ecb.html
The European Central Bank has cut its main lending rate to 2%, down from 2.5%


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## Ciaraella (15 Jan 2009)

Our Mortgage will have dropped by around 400 since september, fantastic!


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## sandrat (15 Jan 2009)

ours has dropped too but we are a payment holiday now due to unpaid maternity leave. Plan is to overpay up to the amount we used to pay and then use built up money towards a future unpaid maternity leave period!


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## mrsg09 (15 Jan 2009)

Great news!


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## KFB123 (15 Jan 2009)

Great News is right. It's time for us all to try and spread good news. There are too many people spreading bad news. I am personally sick of negativity and George Lee and all these negative posts etc. What about the positives??? Lower fuel prices, lower food prices. Everything has been reduced in price. Now interest rate cuts. 
OK it is bad in some cases but we have to cling onto what we can


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## D8Lady (15 Jan 2009)

Go trackers! yayyy!


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## Guest116 (15 Jan 2009)

Yes good news for tracker holders in particular. It will make it easier on those who have been unfortunate to have lost a job etc.

On the flip side I suppose we can expect to see reduced savings interest rates.


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## Pauliwalnuts (15 Jan 2009)

This is good news indeed in these severe times. With inflation dropping like a stone in the Euro region they should continue to go South for a while more as well. However there is a caveat, interest rates are this low for a reason & that is the huge recession that we have on our hands. You are seeing these huge cuts in a short period to try & inject money into the economy & avoid deflation. Typically in a boom interest rates will rise to avoid inflation.

So even though it seems like great news it is not necessarily so. I am sure that the many thousands losing their jobs everyday would prefer higher interest rates than being on the dole.

What one hand giveth the other taketh away !!


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## Liamos (15 Jan 2009)

Has anyone heard yet if the EBS are passing on the cut to their variable rate customers?


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## Yeager (15 Jan 2009)

Great news if they pass it on......PTSB said they wouldn't guarantee the next one (this one) after the last cut.


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## 23rdbuchan (15 Jan 2009)

KFB123 said:


> Great News is right. It's time for us all to try and spread good news. There are too many people spreading bad news. I am personally sick of negativity and George Lee and all these negative posts etc. What about the positives??? Lower fuel prices, lower food prices. Everything has been reduced in price. Now interest rate cuts.
> OK it is bad in some cases but we have to cling onto what we can



Doesn't matter how cheap stuff is if you don't have a job.  That is the reality for a lot of people.

Feel free to talk it up though, it has really benefited us for the last 10 years.


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## VOR (15 Jan 2009)

Ciaraella said:


> Our Mortgage will have dropped by around 400 since september, fantastic!


 
If you can afford to put even the latest rate cut against your mortgage you will see a dramatic decrease in the term. It could knock years off your mortgage. 

I for one am taking the positives from this cut. Lower mortgage rates, lower fuel costs and lower food costs. That's all good. 
I am sure the gov will come knocking soon to take it some way or another.


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## Mr DT (15 Jan 2009)

KFB123 said:


> Great News is right. It's time for us all to try and spread good news. There are too many people spreading bad news. I am personally sick of negativity and George Lee and all these negative posts etc. What about the positives??? Lower fuel prices, lower food prices. Everything has been reduced in price. Now interest rate cuts.
> OK it is bad in some cases but we have to cling onto what we can


 
Good News if your in debt, Bad news if your a saver.
Oh and ...er....why have they reduced the rate, cos they know the ****es thats around the corner.

People are losing their jobs left right and centre. They don't give two hoots about interest rates coming down when they have no job. Lets spread good news and forget what is really going on in the real world, great idea. 

Now is the time to refocus and move on i agree, BUT we should not forget what a mess we are currently in

If you don't want to hear what is going on then switch George off, your choice.


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## Mr DT (15 Jan 2009)

VOR said:


> I am sure the gov will come knocking soon to take it some way or another.


 
They already have, wake up!! 
Income levy, reduced tax benefits for medical and health insurance, airport tax etc


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## jhegarty (15 Jan 2009)

23rdbuchan said:


> Doesn't matter how cheap stuff is if you don't have a job.  That is the reality for a lot of people.
> 
> Feel free to talk it up though, it has really benefited us for the last 10 years.




You do know people on the dole have to keep paying their mortgage , so yes it does help people without a job.


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## KFB123 (15 Jan 2009)

Job or not, lower prices will help. Lower interest rates will help.
Feel free to talk it down though, that will really benefit us in the next 10 years!


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## irishlinks (15 Jan 2009)

The new rate is effective from Jan 21st - just for your  info .


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## glowinthedar (15 Jan 2009)

Yeager said:


> Great news if they pass it on......PTSB said they wouldn't guarantee the next one (this one) after the last cut.


 
Does anyone know if the government will force them to pass on this cut?


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## venice (15 Jan 2009)

Change the tune Mr DT. Why be so bitter about people paying less each month for there mortgage. Funny you menction George Lee. A hero of yours????


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## irishlinks (15 Jan 2009)

glowinthedar said:


> Does anyone know if the government will force them to pass on this cut?



They can't force them to do anything. They have to pass it on to tracker customers and that's all.


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## MikeLavelle (15 Jan 2009)

it is totally up to the banks what they do when it come to variable and fixed rates. the trackers are great for the next 6 months. but once the swing in the rates happens which won't be for 6 to 9 months then those mortgages are the first to get hit.  
Like what has been said before Enjoy it while we can. 
Mike


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## Jody (15 Jan 2009)

KBC ( IIB ) slow off the mark again, I just phoned them and they have no changes just yet


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## jhegarty (15 Jan 2009)

From RTE: Bank of Ireland and Permanent TSB are both passing on the interest rate cut in full on homeloans.


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## venice (15 Jan 2009)

Why? What the hell is happening in 6 to 9 months?????


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## Dinging (15 Jan 2009)

Ref KBC, if an mortgage holder with them has a tracker are they legally obliged to pass on the rate cut?


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## Yakuza (15 Jan 2009)

Presumably what is meant there is that, due to the cyclical nature of the interactions between inflation, interest rates etc, as interest rates bottom out, people / companies will start to borrow again to buy, thereby starting the cycle of demand-related inflation again, which will thus make the ECB look at raising rates again to limit inflation.  

It's like the mixer unit in a bath, they're constantly tweaking the hot and cold water supply as the temperature is never quite right!


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## Guest116 (15 Jan 2009)

MikeLavelle said:


> it is totally up to the banks what they do when it come to variable and fixed rates. the trackers are great for the next 6 months. but once the swing in the rates happens which won't be for 6 to 9 months then those mortgages are the first to get hit.
> Like what has been said before Enjoy it while we can.
> Mike


 
No one knows what will happen in 6 to 9 months.

And when\if rates go up you can be very certain that variable rates will also increase. I dont think any variable rates did not increase when the rates were increased from December 05 on.


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## venice (15 Jan 2009)

Agreed. Nobody has a clue about 6 - 9 or even 2 months ahead with the speed things are going at. Its purely a guessing game...


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## Seiko (15 Jan 2009)

Dinging said:


> Ref KBC, if an mortgage holder with them has a tracker are they legally obliged to pass on the rate cut?


 
Is this true regardless of whether the property is owner occupied or rented? ( The bank could tell the difference because of Tax Relief at Source)


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## MikeLavelle (15 Jan 2009)

It is expected that rates might increase by 0.25% before the end of the year to level off at 2%. like someone said before it is nearly free money at the moment and for the ECB/ commercial banks to make money they need to operate at  a 2% average. I do not have 30 years experience in the banking sector, i am only going on what i have been told at various conferences i have been to since the new year by "Economic Experts". 

Ref: aristotle25 
variable rates always go up first.  Like casinos  the house/bank always wins as they say.


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## Guest116 (15 Jan 2009)

MikeLavelle said:


> Ref: aristotle25
> variable rates always go up first.


 
But thats not what you said before...

"trackers are great for the next 6 months. but once the swing in the rates happens which won't be for 6 to 9 months then those mortgages are the first to get hit."


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## Guest116 (15 Jan 2009)

MikeLavelle said:


> It is expected that rates might increase by 0.25% before the end of the year to level off at 2%. .


 
That would leave rates at 2.25% not 2%.


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## Dreamerb (15 Jan 2009)

Seiko said:


> Is this true regardless of whether the property is owner occupied or rented? ( The bank could tell the difference because of Tax Relief at Source)


If it's on a tracker, then yes.


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## venice (15 Jan 2009)

Oh Mike, not the same "Economic Experts" that seen none of this coming??? I hope that these various conferences you have been attending gave you a nice free lunch so at least your time will not have been completely wasted.


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## MikeLavelle (15 Jan 2009)

aristotle25 said:


> But thats not what you said before...
> 
> "trackers are great for the next 6 months. but once the swing in the rates happens which won't be for 6 to 9 months then those mortgages are the first to get hit."



They are great for the next 6 to 9 months then once the rates start to increase then they will be the first to suffer. 
Apologies if i replied incorrectly.


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## MikeLavelle (15 Jan 2009)

venice said:


> Oh Mike, not the same "Economic Experts" that seen none of this coming??? I hope that these various conferences you have been attending gave you a nice free lunch so at least your time will not have been completely wasted.




honestly if people listened this was coming 3 years ago. I am an ex accountant turned Financial services company owner and in all honestly no one wanted to listen  to anyone saying this would happen 2 years ago.  we treated anyone who said that as if they had a bad smell and turned our back on them. 

I have to say hand on heart i thought i might but no where near as bad as it has been and will be.


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## Sunny (15 Jan 2009)

MikeLavelle said:


> It is expected that rates might increase by 0.25% before the end of the year to level off at 2%. like someone said before it is nearly free money at the moment and for the ECB/ commercial banks to make money they need to operate at a 2% average. I do not have 30 years experience in the banking sector, i am only going on what i have been told at various conferences i have been to since the new year by "Economic Experts".
> 
> Ref: aristotle25
> variable rates always go up first. Like casinos the house/bank always wins as they say.


 

Not one sane person is saying rates are going up this year. What conferences were you at?


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## MikeLavelle (15 Jan 2009)

aristotle25 said:


> That would leave rates at 2.25% not 2%.




not after the expected rate reduction in the second quarter of this year. which is expected to be 0.25% bringing the ECB rate to 1.75% come the summer.


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## demoivre (15 Jan 2009)

Another pay increase for me today - lovely stuff. It's not all doom and gloom folks - I'll bet there's many a happy couple like [broken link removed] who are delighted to see rates / house prices falling .


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## MikeLavelle (15 Jan 2009)

Sunny said:


> Not one sane person is saying rates are going up this year. What conferences were you at?



I'm not going to split hairs on that one Sunny.
The banking system can not operate  for a long period with rates under 2% without further government bailouts. that is why the reduction today brought the ECB to a record low. there comes a point where it does not become profitable for the ECB and banks to lend. we are extremely close to that at the moment.


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## efm (15 Jan 2009)

MikeLavelle said:


> not after the expected rate reduction in the second quarter of this year. which is expected to be 0.25% bringing the ECB rate to 1.75% come the summer.


 
Market analysts are suggesting the rate could drop to as little as 1% by June or September.


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## venice (15 Jan 2009)

Mike, Did you still sell mortgages to people over the last couple of years knowing what you know?
 0.25% reduction in the second quarter of this year followed by 0.25% increase after that.... sure you dont know that. nobody does, its just a wild guess


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## MikeLavelle (15 Jan 2009)

efm said:


> Market analysts are suggesting the rate could drop to as little as 1% by June or September.



They may well do efm. If they do then all the better as that means more money available in everyones wage packets. 
I hope they do.


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## demoivre (15 Jan 2009)

efm said:


> Market analysts are suggesting the rate could drop to as little as 1% by June or September.



+ 1. Anyone who thinks this global  economic downturn will have bottomed in 6 to 9 months a) doesn't know a whole lot about Economics and economic cycles or b) needs an MRI scan.


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## MikeLavelle (15 Jan 2009)

venice said:


> Mike, Did you still sell mortgages to people over the last couple of years knowing what you know?
> 0.25% reduction in the second quarter of this year followed by 0.25% increase after that.... sure you dont know that. nobody does, its just a wild guess



over the past year i have not sold one fixed rate to anyone apart from to myself would you believe, as that is what i wanted for me. Any Clients who have come off a fixed rate previous to that are on a 0.95% tracker. I know a small number of brokers have given the entire sector a shocking name and to be honest i thought that too when i was an accountant. I do a financial review that is totally free from start to finish. on the basis that if i do a good job that the client, they will recommend me to a friend. If a broker does not think of the long term for the client then they may as well not be a broker. 
High Moral ground and all that it may be but that is my opinion.


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## Sunny (15 Jan 2009)

MikeLavelle said:


> I'm not going to split hairs on that one Sunny.
> The banking system can not operate for a long period with rates under 2% without further government bailouts. that is why the reduction today brought the ECB to a record low. there comes a point where it does not become profitable for the ECB and banks to lend. we are extremely close to that at the moment.


 

 The banking system can work fine at rates under 2%. Its Central banks who don't want low rates as they are afraid they will get stuck in a liquidity trap. Trichet said that while rates were at the same level as the historical low after today, 2% is by no means a floor with regard to rates. 

You are right that rates will go up quickly when the cycle turns but it won't be this year.


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## MikeLavelle (15 Jan 2009)

Sunny said:


> The banking system can work fine at rates under 2%. Its Central banks who don't want low rates as they are afraid they will get stuck in a liquidity trap. Trichet said that while rates were at the same level as the historical low after today, 2% is by no means a floor with regard to rates.
> 
> You are right that rates will go up quickly when the cycle turns but it won't be this year.



thank you Sunny. I hope you are right we need low rates for 2009 and beyond.


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## venice (15 Jan 2009)

Mike, you say earlier that if people listened this was coming 3 years ago etc. and then say that over the past year you have not sold one fixed rate to anyone, so you must have fixed people in for the privous 2 years. I get the impresion that you are like the vast majority of us and did not see this coming, the same way knowbody knows what the future holds..


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## cgc5483 (15 Jan 2009)

VOR said:


> I am sure the gov will come knocking soon to take it some way or another.



Just thinking though is the rate cut not good news for the government as well. I mean prior to these cuts I was my annual qualifying for maximum relief on the interest. Now I'm only somewhere close to 60% (with partner as well) so the government is up about €1000 between the two of us in TRS.


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## MikeLavelle (15 Jan 2009)

I was an accountant this time two years ago Venice and only did 5 fixed cases in all of 2007 and none of them after July07 and none longer than 2 years, all with a tracker role over not variable. 
I agree with you not only the vast majority but 99% of us. If i had seen this coming I would have sold everything and rented.


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## pinkie123 (15 Jan 2009)

Mike, would be interested in your opinion. on a fixed rate 4.85% until june 2010. With rate cuts I would be over €200 a month better off if I went with variable/tracker. BOI quoted me 10K yesterday to change. am very peeved!


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## Sunny (15 Jan 2009)

pinkie123 said:


> Mike, would be interested in your opinion. on a fixed rate 4.85% until june 2010. With rate cuts I would be over €200 a month better off if I went with variable/tracker. BOI quoted me 10K yesterday to change. am very peeved!


 
Its never nice but you chose to fix the rate. It could have gone the other way and you would have been laughing. Its just better not to think about it!


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## MrMan (15 Jan 2009)

Who cares who saw what coming, predictions will never be 100% accurate and those making them will be wrong more often than right. If anyone takes massive gambles they need to be aware that the penny can drop either way. I agree with those saying we need to focus on what positives we have because people are fearing the worst at the moment on every front and that does not make for a healthy society or for one that can get back on its feets.


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## MikeLavelle (15 Jan 2009)

pinkie123 said:


> Mike, would be interested in your opinion. on a fixed rate 4.85% until june 2010. With rate cuts I would be over €200 a month better off if I went with variable/tracker. BOI quoted me 10K yesterday to change. am very peeved!




Look at it this way you have been on a winner for most of 2008 as that rate has not been around since late 07 early 08. That is the only thing i would say.  The banks will get you on the get out clause but that is the way they do business. 
Sorry to say but there is nothing you can do. but as i said above you did benefit for most of 2008. Look on the bright side over half the fixed rate products on the market at the moment are still at a higher than 4.85% (just checked there now).


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## venice (15 Jan 2009)

Fair enought, keep up the good work


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## polaris (15 Jan 2009)

MrMan said:


> Who cares who saw what coming, predictions will never be 100% accurate and those making them will be wrong more often than right. If anyone takes massive gambles they need to be aware that the penny can drop either way. I agree with those saying we need to focus on what positives we have because people are fearing the worst at the moment on every front and that does not make for a healthy society or for one that can get back on its feets.



Agree with you to an extent but we still need to examine where we went wrong so as not to make the same mistakes again.

Plus those responsible for getting us into this mess would like nothing better than for everyone to just focus on the "positives" now


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## Grace80 (15 Jan 2009)

MikeLavelle said:


> that is why the reduction today brought the ECB to a record low. there comes a point where it does not become profitable for the ECB and banks to lend. we are extremely close to that at the moment.


 
Not a record low - ECB was 2% in 2005.


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## MikeLavelle (15 Jan 2009)

Grace80 said:


> Not a record low - ECB was 2% in 2005.



joint record low if that makes you happy Grace80


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## MrMan (15 Jan 2009)

polaris said:


> Agree with you to an extent but we still need to examine where we went wrong so as not to make the same mistakes again.
> 
> Plus those responsible for getting us into this mess would like nothing better than for everyone to just focus on the "positives" now


 
We should also individually accept responsibility for any mistakes or gambles we took otherwise what lessons will we really learn? We can blame the usual suspects until the cows come home but it changes nothing and when they are all gone to the wall who will we have left to blame?


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## Mr DT (15 Jan 2009)

MrMan said:


> Who cares who saw what coming, predictions will never be 100% accurate and those making them will be wrong more often than right. If anyone takes massive gambles they need to be aware that the penny can drop either way. I agree with those saying we need to focus on what positives we have because people are fearing the worst at the moment on every front and that does not make for a healthy society or for one that can get back on its feets.


 

Currently in a position where my company has no option but to make 300 redunancies. I'll tell you how positive they will feel when its done should I?

These are "normal" people who's only gamble was not say NO to the 6X salary X 30 year mortgage because every one was doing it, they didn't want to miss the boat, property can only go up......

People need to fear for thier jobs and change thier lifestyles accordingly. We are one of the most indebted nations *in the world*. Goverment debt has been past on to individuals. We need to start to save and invest for the future, not blow it on the over valued property pryamid scheme.

BY Mr DT (friend of george)


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## rameire (15 Jan 2009)

Jody said:


> KBC ( IIB ) slow off the mark again, I just phoned them and they have no changes just yet


 
please tell me you are taking the p*ss.
they only announced the rate reduction today.


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## Jody (15 Jan 2009)

No I assure you I asked their customer service team and they said no decision to announce yet, I will be seriously unimpressed if it is not announced tomorrow


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## D8Lady (15 Jan 2009)

From RTE


*"Banks respond to the cut*
 AIB, Halifax, Ulster Bank, First Active, Permanent TSB, NIB, Irish Nationwide and EBS Building Society have confirmed that they are passing on the half a percentage point interest rate cut in full to their variable and tracker rate mortgage holders.


 Bank of Ireland says it is passing on the interest rate cut in full to owner occupiers with variable or tracker rate mortgages. It has not yet made a decision on other mortgage rates for investors.


 A Permanent TSB spokesman said the rate cut was being passed on in full as the real cost of bank borrowing on the interbank markets had come more into line with the ECB rate in recent weeks.


 NIB said it saw 'little scope' to pass on any future rate cuts to variable rate customers 'given the requirement to balance the level of interest rates paid to deposit customers and the cost of market funding'."


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## irishlinks (16 Jan 2009)

Jody said:


> No I assure you I asked their customer service team and they said no decision to announce yet, I will be seriously unimpressed if it is not announced tomorrow



You are taking the p...!  As mentioned earlier - cut is effective from Jan 21st. Give them a  chance.


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## Jody (16 Jan 2009)

I am not stupid ! But every other bank announced something yesterday and I would expect that they along with half the planet knew that the ECB was meeting and therefore they know exactly what they are doing. I don't want money I just want information surely that's not too much to ask... Have you a connection ?


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## KK1 (16 Jan 2009)

Jody,

You are right, they were slow the last time as well and it was predicted that it would happen so they should know what they want to do.  What really annoys me is that there's no mention of what they are doing in any of the papers, which implies that everyone is benefiting from this when it may not be the case.


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## PaddyW (16 Jan 2009)

How exactly is Jody taking the p*ss? Everyone else was quick to announce it, why not KBC? Not like it was a closely guarded secret.


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## myate (16 Jan 2009)

I'm on a fixed rate of 5.60 for next 2.5 years...I rang EBS this morning to enquire about moving to SVR....a penalty of 12,000 to change! Does this sound right to anybody?


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## PaddyW (16 Jan 2009)

How much is your mortgage? I rang to see how much it would be to get out of my fixed rate, 5.24, for the next 2 years. Outstanding amount is 95k, charge to break it was 1500 euro.


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## myate (16 Jan 2009)

284k for 30 years, pretty much all outstanding as we just got it in Oct! Oh well, live and learn!


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## PaddyW (16 Jan 2009)

12,000 would be about right so.


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## KK1 (16 Jan 2009)

KBC customer service just confirmed that they are only passing on 0.25.


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## cazmayo (16 Jan 2009)

A previous poster says that First Active is passing on the rate cut to variable and trackers customers, however my husband said he heard on the radio that they were not passing it on to the offset customers??

Anyone know anything?

Caz


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## DublinMo (16 Jan 2009)

KK1 said:


> KBC customer service just confirmed that they are only passing on 0.25.


 
we cant really complain too much in fairness...we've all done well out of it since Oct...ive saved circa 840€ per month (2 mortgages) goin forward with the previous 3 and yesterdays rate cut....


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## rameire (16 Jan 2009)

cazmayo said:


> A previous poster says that First Active is passing on the rate cut to variable and trackers customers, however my husband said he heard on the radio that they were not passing it on to the offset customers??
> 
> Anyone know anything?
> 
> Caz


 
i can assure you the rate will be passed onto all the offset customers as it has been previously and as it will do in the future, as it is a tracker mortgage, so you will see a drop in the interest rate in the near future.
whoever was on the radio your husband heards was incorrect and should be shot.


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## cazmayo (16 Jan 2009)

Oh rameire, your an angel!  You've made my day.  Didnt know it was classed as a tracker.  We are presently on 3.65 (not including this latest cut) so pretty happy with First Active.

Cheers
Caz


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## rameire (16 Jan 2009)

just remember to ring up to reduce your repayment, if thats what you want.

also know the rate reduction will be applicable to your offset mortgage from the 28th of jan.


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## Breaker (16 Jan 2009)

KK1 said:


> KBC customer service just confirmed that they are only passing on 0.25.



presume you are talking about variable mortage


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## KK1 (19 Jan 2009)

Yes, it was on variable


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## Soarer (19 Jan 2009)

DublinMo said:


> we cant really complain too much in fairness...we've all done well out of it since Oct...ive saved circa 840€ per month (2 mortgages) goin forward with the previous 3 and yesterdays rate cut....


 
Why not?
Pretty much every other bank is passing on the full 0.5%, so why not KBC?
Their Variable rate wasn't one of the cheapest before this cut, so it's pushed out even further now. Before the announcement the other day, I was on 3.74%. The best rate I could see was AIB @ 3.49, which is 0.25 points lower. That difference alone was costing me approx. €53 a month. Now that AIB have reduced their rate to 2.99% and KBC have only reduced theirs to 3.49%, it's gonna cost me an extra €105 a month to stay with them!

We're currently looking at maybe buying a new house, but now whether we do or don't, we're certainly moving from KBC.


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## Grace80 (20 Jan 2009)

Soarer said:


> The best rate I could see was AIB @ 3.49, which is 0.25 points lower. That difference alone was costing me approx. €53 a month. Now that AIB have reduced their rate to 2.99% and KBC have only reduced theirs to 3.49%, it's gonna cost me an extra €105 a month to stay with them!
> 
> We're currently looking at maybe buying a new house, but now whether we do or don't, we're certainly moving from KBC.


 
The AIB variable rate??? This is currently 3.75% and will reduce to 3.25% with the latest ECB cut...


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## Soarer (20 Jan 2009)

Apologies, got a bit mixed up yesterday....was working everything from memory!

After doing a bit of snooping, it turns out the KBC interest rate (before ECB cut) is 4.24%. This means with the latest cut, my new interest rate will be 3.99%.  This will save me €52.92 a month.....not to be sniffed at.

But if I move to AIB, I'll be dropping from 4.24% (current KBC rate) to 3.25% (new AIB rate), I'll be saving approx. €210 per month!
I suppose that's not really comparing apples with apples, so if we take the new KBC rate (3.99%) against the new AIB rate (3.25%), I'll be saving €156 per month!

Tis a no brainer really.

P.S. All the above figures are just interest repayments on a €254k mortgage, and I think they're correct. If they're wrong, I'd like to know what the correct figures are.


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## irishlinks (20 Jan 2009)

Soarer said:


> Apologies, got a bit mixed up yesterday....was working everything from memory!
> 
> After doing a bit of snooping, it turns out the KBC interest rate (before ECB cut) is 4.24%. This means with the latest cut, my new interest rate will be 3.99%.  This will save me €52.92 a month.....not to be sniffed at.
> 
> ...


 


But.... it will cost you at least a grand to switch to AIB.
Halifax might be worth looking at too - they have good rates and pay towards legal fees for switchers
Also - will the other banks accept you? How much is the value of the house?


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## PaddyW (20 Jan 2009)

At savings of 210 per month, wouldn't you break even on that after 5 months though? The 1000 euro switching fee that is.


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## Citygirl (21 Jan 2009)

Just to let you know that I have 2 friends who are switching their mortgages over to AIB and they are getting approx €1200.00 towards their legal fees.  So make sure you ask because then it is really worth your while.


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## Soarer (21 Jan 2009)

irishlinks said:


> Also - will the other banks accept you?


 
Why? What's wrong with me? 

Seriously though, we should be ok. The wife's job (with a German Engineering Company) is as safe as can be in the current climate. I have one of those semi-state "job for life" things . 
Our house is standing us €250k, and it's been valued at €320k...would probably only get €300k in this day and age .
I was onto our mortgage broker the other day, and after we sent in our salary certs and stuff, we got "pre-approved" for a mortgage amount over double our current mortgage.
And as a final cherry on the icing on the cake, our solicitor is a friend of ours, and they'll do the donkey work for <€500 .

So it's pretty much a no brainer for me. If KBC had reduced by the full 0.5%, I wouldn't be bothered. 

Actually, can banks be haggled with? I'm thinking that when I ring up to tell them I'm leaving because of the 0.25% reduction, is there a chance that they'll offer me the 0.5%? Maybe those who ask will get it, and those that don't, won't?

@ Citygirl : Did your friends go direct to AIB, or did they go through a broker?


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## Grace80 (21 Jan 2009)

Were the rate reductions to come into effect today?
I just checked the AIB website and the variable rate is still quoted as 3.75%....

My next mortgage repayment will be debited on the 25th of January - 
Can someone tell me if the new reduced rate 3.25% will be applied to this or will I have to wait till next month??


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## twofor1 (21 Jan 2009)

Fair play to NIB, the ECB rate comes into effect today, they must pass this on within 3 working days for trackers so they could have dragged it out until next Monday.

I can see online the rate applying to my tracker has reduced to 2.5% today.


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## Citygirl (21 Jan 2009)

My friends went directly to AIB in Swords.


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## Taxi Driver (21 Jan 2009)

PTSB will be passing on the latest 0.5% cut to Variable and Tracker rates on the 13th of February.  Repayments won't change until March.

I don't know about this 3 days requirement mentioned for NIB.  I thought it was 30.  Or can the banks set their own?


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## twofor1 (21 Jan 2009)

Taxi Driver said:


> I don't know about this 3 days requirement mentioned for NIB. I thought it was 30. Or can the banks set their own?


 
Don’t know about PTSB but my terms and conditions state the new rate will be applied within 3 working days.


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## moneygrower (21 Jan 2009)

Actually, can banks be haggled with? I'm thinking that when I ring up to tell them I'm leaving because of the 0.25% reduction, is there a chance that they'll offer me the 0.5%? Maybe those who ask will get it, and those that don't, won't?

We did this I think it was a year ago, ask to speak to retentions dept, we got lower rate than any advertised by the bank and saved hassle of moving.


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## Grace80 (26 Jan 2009)

AIB website and my online banking is still quoting 3.75% as the variable rate.....???


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## KatieC (26 Jan 2009)

Grace80 said:


> AIB website and my online banking is still quoting 3.75% as the variable rate.....???


 
Same here, tracker rate hasn't changed, come on AIB, sort it!


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## Luckycharm (26 Jan 2009)

moneygrower said:


> Actually, can banks be haggled with? I'm thinking that when I ring up to tell them I'm leaving because of the 0.25% reduction, is there a chance that they'll offer me the 0.5%? Maybe those who ask will get it, and those that don't, won't?
> 
> We did this I think it was a year ago, ask to speak to retentions dept, we got lower rate than any advertised by the bank and saved hassle of moving.


 

I guess it depends on whether you can switch mortgage as it is not was easy as it once was so they could call your bluff.


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