# ECB Rate Cut



## NorfBank

1/2 percent cut


----------



## theoneill

Have they?

Can you post a link?


----------



## Sunny

http://www.bloomberg.com/apps/news?pid=20601087&sid=aXSJ6B94iw3M&refer=home

But is it 50bps by the ECB. Not clear.


----------



## Brownie10

Yep it's on Bloomberg, 50bps.  Co-ordinated effort.  What will happen deposit rates now?  Will they cut to maintain margin or keep them high to attract cash and improve liquidity?  Very interesting

Fed, ECB, Central Banks Lower Rates in Coordinated Reduction 

By Scott Lanman
Oct. 8 (Bloomberg) -- The Federal Reserve, European Central Bank and four otheFed, ECB, Central Banks Lower Rates in Coordinated Reduction 

By Scott Lanman
Oct. 8 (Bloomberg) -- The Federal Reserve, European Central Bank and four other central banks lowered interest rates in an unprecedented, emergency coordinated bid to ease the economic effects of the financial crisis. 
The Fed cut its benchmark rate by a half point to 1.5 percent, the central bank in a statement. The ECB and central banks of the U.K., Canada, Sweden and Switzerland are also reducing rates, the Fed said in a statement. 
``The recent intensification of the financial crisis has augmented the downside risks to growth and thus has diminished further the upside risks to price stability,'' according to a joint statement by the central banks. ``Some easing of global monetary conditions is therefore warranted.'' 
r central banks lowered interest rates in an unprecedented, emergency coordinated bid to ease the economic effects of the financial crisis. 
The Fed cut its benchmark rate by a half point to 1.5 percent, the central bank in a statement. The ECB and central banks of the U.K., Canada, Sweden and Switzerland are also reducing rates, the Fed said in a statement. 
``The recent intensification of the financial crisis has augmented the downside risks to growth and thus has diminished further the upside risks to price stability,'' according to a joint statement by the central banks. ``Some easing of global monetary conditions is therefore warranted.''


----------



## z105

I see the Bank of England have cut rates by 0.5% to 4.5% but on that Bloomberg link it doesn't state by what amount the ECB have dropped rates ??


----------



## FutureProof

http://news.bbc.co.uk/1/hi/business/7658958.stm


----------



## LennyBriscoe

Havealaugh said:


> I see the Bank of England have cut rates by 0.5% to 4.5% but on that Bloomberg link it doesn't state by what amount the ECB have dropped rates ??


 
RTE.ie reporting the ECB rate cut of .5%

[broken link removed]


----------



## Celtwytch

Havealaugh said:


> I see the Bank of England have cut rates by 0.5% to 4.5% but on that Bloomberg link it doesn't state by what amount the ECB have dropped rates ??


 
It says it on the ticker-tape style thingy at the top right of the page.  (It actually says half a point, so I presume that means 0.5%)


----------



## z105

> It says it on the ticker-tape style thingy at the top right of the page. (It actually says half a point, so I presume that means 0.5%)



Still can't see it however, it has been confirmed, it's on Sky news too.

Bit of a shock, can they throw anything else at this crisis ?


----------



## The_Banker

It seems the Worlds Central Banks have acted in unison. The Fed, ECB, BOE, Canadian Central Bank, Swedish CB and other all cut at the same time!


----------



## corkfella

big suprise from the ecb considering they all agreed only last thursday and left it alone, it must show how worried they are but at least they are all working together.


----------



## jhegarty

got to love tracker mortgages


----------



## dieter1

Will the banks pass on the cut to homeowners though?


----------



## NorfBank

If on a tracker you will see the 0.5% passed on.
If on a variable rate, it is up to the bank.


----------



## Towger

jhegarty said:


> got to love tracker mortgages


 
As long as the banks don't start pulling tricks, trying to get us off them. 
The only down side is that unless the EURIBOR drops by the same amount the Banks _may_ be losing even more money on us.

On standard mortages I dont think people will see much of a cut, if any. The banks still need the cash.


----------



## VOR

3M EURIBOR is now 164 bps above ECB rate. 
Will the last person on a variable rate, please turn off the lights.


----------



## NorfBank

Wow. That much.
NIB must be loving their ECB + 0.5% tracker customers.


----------



## Luckycharm

Well that good news!!


----------



## Guest116

Nice one, good for tracker mortgage holders. Hopefully we might see another .25 cut by year end...?


----------



## Sunny

Anyone reckon the Government will be having a word in their ears telling them to pass on the full decrease?


----------



## CreNaCille

I pay my mortgage (tracker) at the start of the month.  Will I see the 0.5% cut in my Nov payment or will I have to wait till Dec?


----------



## Guest116

CreNaCille said:


> I pay my mortgage (tracker) at the start of the month. Will I see the 0.5% cut in my Nov payment or will I have to wait till Dec?


 
You will see it in the Nov payment.


----------



## rustbucket

Would be nice. Anyone AIB will reduce their fixed rate on this news? Have currently been quoted 5.2% fixed but have not drawn down yet.


----------



## Mr DT

Good news......for those in debt. 

You never know some people might breakeven after the budget next week now!!!


----------



## aishling99

aristotle25 said:


> You will see it in the Nov payment.



I think it depends on the bank.  When the interest rates went up in the summer it took us about two months before we got increased payments, they said it would be the same if rates went down.  Whereas with my old mortgage they used to be applied at the next payment.


----------



## Guest116

aishling99 said:


> I think it depends on the bank. When the interest rates went up in the summer it took us about two months before we got increased payments, they said it would be the same if rates went down. Whereas with my old mortgage they used to be applied at the next payment.


 
Were you on a variable mortgage perhaps?

If you are on a tracker it should take effect now.


----------



## CreNaCille

aishling99 said:


> I think it depends on the bank.  When the interest rates went up in the summer it took us about two months before we got increased payments, they said it would be the same if rates went down.  Whereas with my old mortgage they used to be applied at the next payment.



As long as they are consistent.  I wouldn't put it past the banks to pass on raises straight away but delay the cuts


----------



## aishling99

aristotle25 said:


> Were you on a variable mortgage perhaps?
> 
> If you are on a tracker it should take effect now.




nope both times they were tracker mortgages, just different banks.  The change in interest might have taken effect immediately, but the direct debit amount didn't change for two months.


----------



## MikeySligo

Towger said:


> As long as the banks don't start pulling tricks, trying to get us off them.


 
What's your thinking?


----------



## Guest116

aishling99 said:


> nope both times they were tracker mortgages, just different banks. The change in interest might have taken effect immediately, but the direct debit amount didn't change for two months.


 
Bizarre, maybe depends on the terms of your mortgage but at least with NIB the changes take effect straight away.


----------



## MikeySligo

aristotle25 said:


> Bizarre, maybe depends on the terms of your mortgage but at least with NIB the changes take effect straight away.


 
I think shes saying it does take effect straight away but it may take them that long to amend the direct debit.


----------



## aishling99

aristotle25 said:


> Bizarre, maybe depends on the terms of your mortgage but at least with NIB the changes take effect straight away.



yep is a bit strange and slighly annoying but as long as they are consistent with rates going up and down then its not too bad.  I won't be moving from them anyway


----------



## Guest116

MikeySligo said:


> I think shes saying it does take effect straight away but it may take them that long to amend the direct debit.


 
But that means the bank owe her money back?


----------



## z105

> I pay my mortgage (tracker) at the start of the month. Will I see the 0.5% cut in my Nov payment or will I have to wait till Dec?



I pay mine around the 10th of each month, I'll hardly see the reduction this month ?? Is the reduction effective immediately ?


----------



## MugsGame

ECB rate cut takes effect on 15th Oct (for the rate we are interested in.).
http://www.ecb.int/home/html/index.en.html


----------



## aishling99

its bank of scotland and its all in their terms.

In the event of an increase or decrease in the published European Base  Rate (European Central Bank Main Refinancing Operations Minimum Bid Rate) we  will require up to one month from the date of such increase or decrease to  fully implement any amendment to our rates. 

and then
We will give you notice of any change in the rate at which        interest is to be charged. The interest rate applied to the Loan will be        altered with effect from the date specified in our notice. A new        interest payment/repayment instalment will be requested with effect from        the next monthly payment date after the end of the month in which the        alteration in the interest rate occurs. 

not as nice as the immediate effect one, but once its consistent it should hopefully even out.

So I guess most people will see the effect in their next payment, but not everyone.


----------



## MikeySligo

aristotle25 said:


> But that means the bank owe her money back?


 
Yeah, they'll reduce it off her final instalment in June 2035.

Ah no, to be serious though, my 14th of each month repayments didn't increase until 14th August following the increase on July 3rd, so maybe hers is just a more extreme example of that if you know what I mean.


----------



## MichaelDes

FTSE & DOW futures both falling

Well that co-ordinated rate cut hit the spot.

Try another another .5% percent tomorrow?


----------



## MikeySligo

MichaelDes said:


> FTSE & DOW futures both falling
> 
> Well that co-ordinated rate cut hit the spot.
> 
> Try another another .5% percent tomorrow?


 

and ISEQ tumbling again too......


----------



## MichaelDes

MikeySligo said:


> and ISEQ tumbling again too......


 
A Lenihan lurch following the Bertie Bubble.



MugsGame said:


> ECB rate cut takes effect on 15th Oct (for the rate we are interested in.).
> http://www.ecb.int/home/html/index.en.html


 
Another blow to saving rates, now well below inflation. That's just great. There is as much chance of resuscitating Elvis as there is of resuscitating the credit derivatives market or the housing market.


----------



## Joe Nonety

Is there anywhere that has historical charts of ECB rates over last 5 years?


----------



## MugsGame

MichaelDes said:


> Another blow to saving rates, now well below inflation. That's just great.



Just wait for the cost of the deposit guarantee to be priced in to savings rates too. And the budget tax changes next week may further reduce the effective return. Not happy!


----------



## Buddyboy

NorfBank said:


> Wow. That much.
> NIB must be loving their ECB + 0.5% tracker customers.


 

Hmmmm....That would be ME!  

I wonder if they will try and re-value the house?


----------



## Dreamerb

Joe Nonety said:


> Is there anywhere that has historical charts of ECB rates over last 5 years?


 http://www.ecb.int/stats/monetary/rates/html/index.en.html

Main refinancing operations rates are what you're probably looking for.


----------



## Guest116

Buddyboy said:


> Hmmmm....That would be ME!
> 
> I wonder if they will try and re-value the house?


 
Interesting, what does the terms and conditions of the mortage state with regards to this?


----------



## MikeySligo

Buddyboy said:


> Hmmmm....That would be ME!
> 
> I wonder if they will try and re-value the house?


 

No, they could never do that, could they?


----------



## MikeySligo

It'd be some job to revalue all the properties mortgaged on trackers anyway. I'm still ok as we built on land we owned, but you'd wonder for how much longer if prices keep falling.


----------



## Towger

MichaelDes said:


> Another blow to saving rates, now well below inflation.


 
It has crossed my mind that they might be trying to introduce a period of high inflation. This would have the net effect _in real terms_ of reducing loan repayments, as happened in the 70s.


----------



## DoctorEvil

aristotle25 said:


> Interesting, what does the terms and conditions of the mortage state with regards to this?



I think the Terms and conditions mentioned a possibility of revalue after 3 years or every 3 years. Must recheck them.


----------



## Celtwytch

Joe Nonety said:


> Is there anywhere that has historical charts of ECB rates over last 5 years?


 
Have a look here: http://www.ecb.int/stats/monetary/rates/html/index.en.html


Looks like someone beat me to this by the time I'd posted mine!


----------



## bond-007

Some banks may even increase their rates.


----------



## Guest116

DoctorEvil said:


> I think the Terms and conditions mentioned a possibility of revalue after 3 years or every 3 years. Must recheck them.


 
Yeah I remember something on that, but I thought it actually said the mortgage holder (i.e. you) have the option to get your house revalued. Didnt think it said NIB can force a re-value or that they can re-value it themselves.


----------



## QED

Could this be the fastest growing Thread ever on AAM?
50 Replies and over 1,500 views in 2.5 hours - not bad.

There is an air of panic in the past few days with another Master Plan or two being unleashed every day but with little or no effect. 

If only we could get all the Bankers & Traders & Regulators & Governments in the world to take a week off to go to the Naughty Step and think about what they've done!!


----------



## PaddyW

delete please, wrong page


----------



## MichaelDes

Towger said:


> It has crossed my mind that they might be trying to introduce a period of high inflation. This would have the net effect _in real terms_ of reducing loan repayments, as happened in the 70s.


 
This is my primary concern and think high inflation will occur. Inflation is a disease and wipes out the earnings and savings of the middle classes.


----------



## demoivre

towger said:


> it Has Crossed My Mind That They Might Be Trying To Introduce A Period Of High Inflation. This Would Have The Net Effect _in Real Terms_ Of Reducing Loan Repayments, As Happened In The 70s.



+1.


----------



## Voda

To those wondering when the rate cut will kick in - I've a tracker with EBS and I just rang to ask them and they said it will be in November's payment and they're sending out letters stating your new payment in the next week or two...


----------



## contractor

QED said:


> Could this be the fastest growing Thread ever on AAM?
> 50 Replies and over 1,500 views in 2.5 hours - not bad.
> 
> There is an air of panic in the past few days with another Master Plan or two being unleashed every day but with little or no effect.
> 
> If only we could get all the Bankers & Traders & Regulators & Governments in the world to take a week off to go to the Naughty Step and think about what they've done!!


A week off yes, but this is no naughty step!


----------



## TwoWheels

So if I am on 5.99% with IIB on a Variable mortgage, would I be too optimistic to hope that it will drop to 5.49 next month ?


----------



## bond-007

The banks may not bother passing on this saving. Don't get too excited.


----------



## contractor

MichaelDes said:


> This is my primary concern and think high inflation will occur. Inflation is a disease and wipes out the earnings and savings of the middle classes.


But when everyone is riddled with debt it can be good in the long run as it has the effect of making your debt cheaper.  My parents struggled with their mortgage to start with which can now be described as peanuts.  The prospect of being stuck with a high mortgage till the end is far more scary than having to deal with increasing shopping bills imo.


----------



## z105

> A week off yes, but this is no naughty step!



Bit like FAS eh! Except that was Mount Juliet !



> So if I am on 5.99% with IIB on a Variable mortgage, would I be too optimistic to hope that it will drop to 5.49 next month ?



Only at the discretion of the bank


----------



## MichaelDes

contractor said:


> But when everyone is riddled with debt it can be good in the long run as it has the effect of making your debt cheaper. My parents struggled with their mortgage to start with which can now be described as peanuts. The prospect of being stuck with a high mortgage till the end is far more scary than having to deal with increasing shopping bills imo.


 
The way money is being printed by all money exchanges the likelyhood of an other Weimar [1920's] is possible. Anyone seeing a positive in this or high inflation is delusional.

[broken link removed]. 

High inflation might be good short term to control all these excesses but wage inflation never matches real inflation. CPI is horlicks, RPI is a better measure. Do you really believe true inflation in the economy is sub 5%?


----------



## Mr DT

QED said:


> Could this be the fastest growing Thread ever on AAM?
> 50 Replies and over 1,500 views in 2.5 hours - not bad.


 

The speed of this thread shows how desperate people are to get thier hands on any reduction in the cost of debt!! 

Guys, don't get too carried away it will be taken from your pockets again in the budget next week. 

BUT it should make the budget easier to swallow.


----------



## MichaelDes

Mr DT said:


> Guys, don't get too carried away it will be taken from your pockets again in the budget next week. BUT it should make the budget easier to swallow.


 
What maddens me on the rate cut is that most people are maxed out on cheap credit. This was okay when there was more money available and more job security. But these have changed. Although the level of debt hasn't changed.

All this rate cut will achieve is to delay the inevitable and change biflation to stagflation. Rate cuts of this nature will be ineffective as Libor remains disconnected from base rates. Interventionalism in free market in my opinion exacerbates problems and occurred previously following the 1930’s.

The gold rocket got more turbo juice today and my weighting will be increased. If this cut is so good why are the markets reacting so much, FTSE down 4% and the financial system now at Defcon 1?


----------



## rory22

> The speed of this thread shows how desperate people are to get their hands on any reduction in the cost of debt!!


 
Why shouldn't people enjoy a glimmer of hope? If passed on this decrease will help a lot of people in real terms when it comes to cash in there pocket at the end of each month.


----------



## contractor

MichaelDes said:


> If this cut is so good why are the markets reacting so much, FTSE down 4% and the financial system now at Defcon 1?


Because inflation is bad for investors and banks.  It eats at their profits.


----------



## Mixednuts

Seems to me like another shot of defibulator into the dying heart of the current financial world , enjoy the last few breaths as there is a funeral coming that we will all need to attend !


----------



## MichaelDes

contractor said:


> Because inflation is bad for investors and banks. It eats at their profits.


 
Thanks contractor it was a rhetorical question. Same as

Is the pope Catholic? 
Is the sky blue? 
Is the ocean salty? 
Is the sun hot?


----------



## terrestrial

I know its a silly thing to ask but, if the current ECB rate cut didn't have the desired effect, or enough of the desired effect, would ECB/EU cut the rates further? Is it an option for them, or will it cause other short/longterm issues?


----------



## Sunny

Halifax were quick off the mark!

http://www.rte.ie/business/2008/1008/mortgage.html


----------



## Sunny

terrestrial said:


> I know its a silly thing to ask but, if the current ECB rate cut didn't have the desired effect, or enough of the desired effect, would ECB/EU cut the rates further? Is it an option for them, or will it cause other short/longterm issues?


 
This question and alot of the other posts probably belong in the Great Financial Debate section where there is already a thread on ECB rates. People here probably just want to know the effects on their monthly mortgage repayments not have an economic discussion on inflation, stagflation or any other type of flation!


----------



## daymoh

MichaelDes said:


> The gold rocket got more turbo juice today[/quote]
> 
> By any chance, are you on the greenenergyinvestor board too?
> 
> I for one, am very happy with the rate drop  My mortgage(tracker) comes out of my a/c at the end of this month. Will the update take effect then or will I have to wait until the end of Nov?


----------



## PaddyW

From what I can see, Halifax and AIB are passing this on almost straightaway.. Is that correct?


----------



## AndyDub

Its great news.... well a little bittersweet as Rea who arranged my tasty tracker rate have gone to the wall, they were great. Hopefully it gets passed to all on SVRs too.


----------



## minion

I hear from friends in banks that little beavers in the banks are currently working on ways of getting out of their tracker mortgage agreements.


----------



## theoneill

I don’t see how they can, isn’t the whole point of a tracker to get a margin over the ECB for the life of the mortgage?


However if you have a LTV that’s borderline they may insist on a revaluation of your home and change the rate if your LTV has changed.


----------



## contractor

theoneill said:


> I don’t see how they can, isn’t the whole point of a tracker to get a margin over the ECB for the life of the mortgage?
> 
> 
> However if you have a LTV that’s borderline they may insist on a revaluation of your home and change the rate if your LTV has changed.


If they reevaluate and the LTV has changed then it means you need to renegotiate the mortgage.  For banks which no longer offer tracker mortgages surely that means moving onto a standard variable?


----------



## Guest116

contractor said:


> If they reevaluate and the LTV has changed then it means you need to renegotiate the mortgage. For banks which no longer offer tracker mortgages surely that means moving onto a standard variable?


 
I dont think so. The mortgage offer is a legal agreement and surely can't be renegotiated without both parties agreeing to it?


----------



## Sunflower123

We drew down our mortgage earlier on this week with IIB, does anyone know if we will be able to get the .5% cut on our mortgage.  Or has anyone heard of IIB passing it onto their customers like the other banks.


----------



## z105

> We drew down our mortgage earlier on this week with IIB, does anyone know if we will be able to get the .5% cut on our mortgage. Or has anyone heard of IIB passing it onto their customers like the other banks.



Is it Fixed, Variable or Tracker ?

It it's Fixed then NO you won't get the reduction

If it's Variable it's at the discretion of the financial institution

If it's Tracker then you will get the reduction from Oct 15th ff


----------



## Sunflower123

Havealaugh said:


> Is it Fixed, Variable or Tracker ?
> 
> It it's Fixed then NO you won't get the reduction
> 
> If it's Variable it's at the discretion of the financial institution
> 
> If it's Tracker then you will get the reduction from Oct 15th ff


 

Its Variable, unfortunatly its not a tracker.


----------



## z105

> Its Variable, unfortunatly its not a tracker.



Give IIB Bank a quick call so....


----------



## Sunflower123

Rang IIB no decision has been made in relation to them cutting their rates as yet.


----------



## Elainee40

we have a sub prime mortgage with GE money and they are not reducing rates apparently, thats what partner was told when he phoned


----------



## Kemo_Sabe

I thought that there was 'no sub-prime in Ireland'

that's what all those bank economists had been saying on RTE anyway 

surely they could not have been mistaken?


----------



## NorfBank

PaddyW said:


> From what I can see, Halifax and AIB are passing this on almost straightaway.. Is that correct?


 
This is correct. BOI will also pass on the rate cut on a variable rate.


----------



## Elainee40

yeap 8.44% is our rate "specilist mortgage" its called


----------



## z105

> 8.44%


----------



## demoivre

Kemo_Sabe said:


> I thought that there was 'no sub-prime in Ireland'
> 
> that's what all those bank economists had been saying on RTE anyway
> 
> surely they could not have been mistaken?



Start here to check if you're not mistaken.


----------



## Elainee40

Yeah so we were hoping they'd pass on the cut but no.

paying that for a year, we were going to re-mortgage about 2 months ago but the market went mad


----------



## PaddyW

8.44%.. my god


----------



## koby

jeepers 8.44% is crazy!

I just rang Irish Nationwide there (we have a variable rate mortgage with them) and they said the rate cuts will be coming into effect in two weeks time and that they would be sending letters out to their customers as soon as that happens. Good news I think. I wasn't expecting that.


----------



## behrajan

Does anybody know if EBS are cutting their rates inline with Halifax and AIB?


----------



## koby

Why not give them a ring or email them to find out


----------



## ubiquitous

Kemo_Sabe said:


> I thought that there was 'no sub-prime in Ireland'
> 
> that's what all those bank economists had been saying on RTE anyway
> 
> surely they could not have been mistaken?



The dogs in the street know that Ireland is riddled with sub-prime.


----------



## z105

Woof woof


----------



## Mixednuts

Hi,
I have just been onto PERMTSB ...

I am on a standard variable rate and asked if they are planning to reduce my Interest rate by the ECB .5% , the answer I got went on the lines of this ....

PTSB.... Well any reduction will be given in the 1st week of November 
ME ..... And what will the reduction be ?
PTSB ...It will be a percentage of the .5%
ME .....How much of a percentage ?
PTSB.. Not confirmed yet.

Seemed like It was the 1000 time that the question had been asked , it seems they are planning to give some sort of a reduction to Variable rate customers but how much only those panic stricken "bangers" know .(mix between bankers & w%*nkers) ...GO TO THE BOLD STEP NOW !


----------



## QED

Elainee40 said:


> yeap 8.44% is our rate "specilist mortgage" its called


 
Elainee40 - Can you say why you can only get this type of mortgage? - If you don't want to say here I understand and sorry for asking.


----------



## Elainee40

we could only get it at the time (september 2007) as my partner had bad credit over Visa bills, which have all been cleared and cancelled before drawdown of the mortgage


----------



## QED

Elainee40 said:


> we could only get it at the time (september 2007) as my partner had bad credit over Visa bills, which have all been cleared and cancelled before drawdown of the mortgage


 
This is a major problem. Not commenting on Elaine40's case but I don't think people (particularly younger people) are educated enough about the serious long-term impact of running behind on debts.


----------



## Mixednuts

Elaine,
Even in the present climate and if you have been paying a mortgage since Sep 2007 you should be able to get a better rate than 8.44% ....get shopping girl , may not be the easiest thing but should be possible .


----------



## z105

> Does anybody know if EBS are cutting their rates inline with Halifax and AIB?


From breakingnews.ie - 

EBS building society today confirmed that following the announcement of the planned reduction in ECB rates that the Society is decreasing its Standard Variable Rate by .5%.

This will bring the standard variable rate to 5.38%. 

EBS tracker products will also reduce by .5%.

These changes will be reflected in existing members’ November mortgage repayments.


> EBS tracker products will also reduce by .5%.



That's nice of them isn't it !


----------



## behrajan

Havealaugh said:


> From breakingnews.ie -
> 
> EBS building society today confirmed that following the announcement of the planned reduction in ECB rates that the Society is decreasing its Standard Variable Rate by .5%.
> 
> This will bring the standard variable rate to 5.38%.
> 
> EBS tracker products will also reduce by .5%.
> 
> These changes will be reflected in existing members’ November mortgage repayments.
> 
> 
> That's nice of them isn't it !


 

Thanks for the update Havealaugh, ah sure they are lovely people!


----------



## Mixednuts

Seems breakingnews.ie knows more than PERMTSB own customer services..
[broken link removed]

09/10/2008 - 16:44:06
National Irish Bank and permanent tsb today confirm that they intends to pass on the full 0.5% interest rate cut announced yesterday by the ECB to its standard variable rate and tracker mortgage customers. 

NIB’s rate cut will be effective from the Wednesday, October 15 for tracker mortgages and from Monday, October 17 for standard variable rate mortgages. 

This will mean that the NIB standard variable mortgage rate will fall from 5.90% to 5.40%. 

Permanent tsb bank’s headline standard variable rate will fall to 5.44%.

The reduction will save customers on a €300,000 mortgage approximately €95 a month. 




Seems NIB & PTSB have joined the "We will give you what YOU are owed" Club ! ..such nice people


----------



## PaddyW

Any news on what First Active are doing?


----------



## PaddyW

Ignore my last post, just found out!


----------



## z105

> Ignore my last post, just found out!



And you won't share it ! Bah !


----------



## PaddyW

Oops, sorry. They're passing on the rate cut apparently!


----------



## bond-007

> we have a sub prime mortgage with GE money and they are not reducing rates apparently, thats what partner was told when he phoned


Knowing them they will put them up. They don't need a ECB increase to jack up the rates.


----------



## Elainee40

yeah they do put rates up willy nilly, reason "internal intrest increases"


----------



## Celtwytch

For any Bank of Ireland customers, the following appeared on their website yesterday:

_Bank of Ireland today, Thursday 9th October 2008, confirms that it will pass on the full ECB rate decrease of 0.5% to our existing Standard Variable Rate (SVR) and Tracker Rate Mortgage customers. The new Standard Variable Rate will be effective on Monday 3rd November 2008 and the new tracker rates effective from Wednesday 15th October 2008._


That's just in time for my mortgage payment this month.  Woo hoo!


----------



## simon333

Any idea if/when AIB will drop their rate for new fixed-rate mortgage customers?


----------



## Celtwytch

simon333 said:


> Any idea if/when AIB will drop their rate for new fixed-rate mortgage customers?


 
Sorry, but I doubt very much that fixed-rate mortgages will see a drop.  The whole point of a fixed rate is that it stays the same for a set period of time.  Tracker and variable rate mortgages are the only ones affected by the fluctuating ECB rate.


----------



## simon333

Ok, but I thought the fixed rate offered to new potential (not yet sign up) mortgage customers might drop along with the variable and tracker rates.


----------



## Celtwytch

simon333 said:


> Ok, but I thought the fixed rate offered to new potential (not yet sign up) mortgage customers might drop along with the variable and tracker rates.


 
Apologies - I thought you meant a fixed-rate mortgage that you had just signed up to.  Dunno about new mortgages.  It's a possibility, I suppose.


----------



## Cheeus

I wonder is it worth holding off signing mortgage agreement? Might a fixed rate come down? If I sign agreement now for a fixed rate, if their fixed rate changes before I draw down, which would I get?


----------



## NorfBank

You will get the rate that is available on drawdown. Fixed rates might come down or they might not. It's that open. Nobody knows.


----------



## Cheeus

Thanks. Just calculated that the variable part of my mortgage will reduce by €40 a month. If the fixed bit fell before drawdown that would be great


----------



## Booter

Celtwytch said:


> For any Bank of Ireland customers, the following appeared on their website yesterday:
> 
> _Bank of Ireland today, Thursday 9th October 2008, confirms that it will pass on the full ECB rate decrease of 0.5% to our existing Standard Variable Rate (SVR) and Tracker Rate Mortgage customers. The new Standard Variable Rate will be effective on Monday 3rd November 2008 and the new tracker rates effective from Wednesday 15th October 2008._
> 
> 
> That's just in time for my mortgage payment this month.  Woo hoo!



Celtwytch, 

Can you post a link? I'm with BOI too and it seems to me that they have increased, slightly, some of their rates as and from 10th October (last week). [broken link removed]


----------



## Celtwytch

Indiansign, here ya go:

[broken link removed]


----------



## bubbasmama

Any news on what First Active are doing?


​                          PaddyW
                  [broken link removed]
                                 [broken link removed]


​                                                                                   #*109* 






                              09-10-2008, 05:30 PM                                                
                                                                                                                             [broken link removed]                     
	

	
	
		
		

		
		
	


	



                  Frequent Poster
                                                                                                                                                                                                          Posts: 171                     





*Re: ECB Rate Cut* 
                                                      Oops, sorry. They're passing on the rate cut apparently!



Sorry, can I just check where you heard the rate cut would be passed on by First Active ? I cannot see anything on their website ? Nor have we received a letter.


----------



## RMCF

Did AIB ever pass on the cut?

I would normally receive a letter from them any time the rate changes on my mortgage, but have got nothing so far.


----------



## Cashstrapped

> Sorry, can I just check where you heard the rate cut would be passed on by First Active ? I cannot see anything on their website ? Nor have we received a letter.



Was in with them today and queried it, the rate cut will be in effect from 1st November for Variable Rate mortgages.


----------



## bubbasmama

many thanks for that .


----------



## LBT

any sign of Ulster bank cutting their rate haven't received any letter....


----------



## sulo

PTSB hope to apply this change to all variable and tracker rates by early November.


Just a query - does that mean they backdate i.e from the date it came in?!


----------



## Leroy42

Think AIB are trying to pull a fast one here.

I have a tracker rate mortgage and the monthly payment came out today.  I fully expected that I would therefor some benefit from this months rate cut, with the full effect being received next month.

The payment was the same as last month.  Contacted AIB who stated that rate had changed from close of Business on 21st, since ECB did not action rate cut until 15th and they had 5 days to action it.  They agreed that given that I was due one day interest charge back, but since payments were already processed I was "unfortunate" it that it had been taken into account.

I have been reviewing this thread and it is clear that other banks have passed on the rate cut form the 15th.  I will be following AIB up on this, but just to let others know.  I guess AIB are hoping that for everyone that notices, only a handful will bother to follow up, and thats free money from them!!!!!


----------



## geld

Someone I know who worked in banking for many years maintains that a bank's biggest asset is the apathy of the borrowers...accepting everything and questioning/pushing for nothing.  Certainly true.  I know in my case I question EVERYTHING to do with my mortgage and I know I cause them headaches...it took me 2 MONTHS of asking for them to send me out a letter outlining how they calculate my mortgage payments.  Simple enough request, I would  think, but it was only when I threatened the financial ombudsman that the letter was produced....


----------



## geld

Meant to say that I did not threaten the financial ombudsman himself, but threatened to take my request to him, citing refusal of the bank to disclose to me how they calculated the money that I owed them.


----------



## minion

Im hearing there is a strong possibility of another significant rate cut too.  Wait for the spin from the banks so they can wiggle out of passing it on.


----------



## dougiehowlet

Leroy42 said:


> Think AIB are trying to pull a fast one here.
> 
> I have a tracker rate mortgage and the monthly payment came out today. I fully expected that I would therefor some benefit from this months rate cut, with the full effect being received next month.
> 
> The payment was the same as last month. Contacted AIB who stated that rate had changed from close of Business on 21st, since ECB did not action rate cut until 15th and they had 5 days to action it. They agreed that given that I was due one day interest charge back, but since payments were already processed I was "unfortunate" it that it had been taken into account.
> 
> I have been reviewing this thread and it is clear that other banks have passed on the rate cut form the 15th. I will be following AIB up on this, but just to let others know. I guess AIB are hoping that for everyone that notices, only a handful will bother to follow up, and thats free money from them!!!!!


 
I am in the same boat.  I got an immediate letter in July when there was an increase.  Mortgage has just gone out, and the rate change was not passed on.  Not impressed.  Presume they will then pass on in November, as well as the expected further decrease


----------



## sandrat

was on to ptsb the other day about payment holiday for unpaid maternity leave and was told they have 30 days to implement the interest rate change. When/how much is the next rate cut expected to be?


----------



## minion

sandrat said:


> When/how much is the next rate cut expected to be?




Nothing is for sure, but i've heard figures of at least a 0.5% reduction in at the next round.


----------

