# EBS -Mortgage variable rate



## mick23 (11 Jun 2012)

i have come out of my 5 yr fixed rate with ebs this month .ebs have written to me today to say that the mortgage is changing over to their variable rate of 4.33% from this month.
i thought the rate would be lower than this,can anyone clarify if this is the correct rate they are quoting me 


any help much appreciated thanks


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## LDFerguson (11 Jun 2012)

EBS don't publish their standard variable rate for existing customers on their website, but their new business variable rates range from 4.0% to 4.6% APR so your 4.33% sounds about right.  

Why did you think it would be lower?


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## switcher1234 (12 Jun 2012)

one reason it should be lower is because AIB have a much lower rate and they might as well be the same bank.  Soon EBS may well end up being the most expensive bank in the market for mortgages


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## LDFerguson (12 Jun 2012)

switcher1234 said:


> one reason it should be lower is because AIB have a much lower rate and they might as well be the same bank. Soon EBS may well end up being the most expensive bank in the market for mortgages


 
The same situation applies to Permanent TSB - AIB and PTSB have the same owner, but PTSB 's rates are far higher than AIB's.  Government says it cannot interfere with rate policy...(except when they can, like when they put pressure on AIB to pass on the ECB rate cut).


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## neddynasty (20 Jun 2012)

mick23, I came out of a 5 year fixed with EBS about 2 months ago. We were put on a variable of 4.33% also.


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## Techhead (26 Jun 2012)

disappointing its not highlighted as much as ptsb. Ptsb said they will cut their rates again which will prob bring them under EBS.  EBS will soon have the highest rate.  It seems if you don't get on their case about t they are happy to leave it like that


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## greenoverred (24 Jul 2012)

So are EBS now the dearest SVR on the market for current customers even though AIB who have been amalgamated with EBS are the cheapest.

No sign of EBS passing on the last rate cut and our wonderful politicians who demanded AIB to cut the last time dont seem to bothered.

What kicks people into action on these things. Why is it that when AIB who are the cheapest provider on the market dont pass on a cut we have uproar but PTSB or EBS seem to be allowed charge what they want or pass on what ever cuts they want


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## leonmahon (24 Jul 2012)

Very little seems to be able to kick the vast majority of Irish people into action on any issue. My only guess is a learned collective consciousness of submission after 800 years of colonialism. Don't let it stop you from trying though.. everything has to start somewhere. Letter writing to your TD, protest at the bank, social media campaigns.. all of these and more are within your grasp.


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## Techhead (24 Jul 2012)

There doesnt seem to be any real motivation to push EBS on this point. AIB and EBS are the same bank when it suits them. You are never going to get them to change anything if you dont apply pressure. Look at PTSB. Do you think they would have done anything on their own. The real fear here is if 4.33 is the lowest they will go then god help us when the ECB rate starts going up again.


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## kmce (25 Jul 2012)

hi all
I contacted my TD about the  high SVRs being charged by the banks  and inparticular my bank EBS. While sympathetic he explained that the government would be criticised if they were seen to be interfering in the banking system! He explained we need the banking system to recover so the tax payer might get some return in the future. I explained I was a tax payer  and needed help now!  I am paying 4.33 to EBS for my mortgage while  AIB customers or  paying 3% for the same product - not to mention  400,000 customers on Trackers who are paying much less.
I am meeting my bank manager in 2weeks time to voice my concerns about this. When I get a chance I will post my details in the money make over section.
We  are struggling every month to make our repayments  and the EBS did not even pass on the last reduction of .25% . I feel like such a mug .
If anyone has any advice  on how to approach this meeting I would love to hear  from them . I am sure we might be offered  interest only but thats only more profit for the bank and a bigger bill  for us in the long term.
We need to move to a bigger house but have negative equity so I dont think they will do anything for us ( dont even have  a tracker to bargain with) 
Just want to see some light at the end of the tunnel
thanks 
k


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## pscannell04 (25 Jul 2012)

EBS are a disgrace if the .25% was added on by the ECB you could be sure they'd up it straight away. AIB and EBS are the same bank when it suits them ..... banking system is a joke, 4.33 % is ridicules


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## peteb (25 Jul 2012)

Not wishing to drag the post off topic, kmce.  But how can you say in one line that you can barely afford your current mortgage and then say in the next line, we need to move to a bigger house? Regardless of your negative equity how did you intend to pay the next mortgage?


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## Techhead (25 Jul 2012)

The only way it's going to get better is if we keep talking about it and creating awareness. Pressing the banks. Pity EBS rate doesn't get much attention in the media. I have a feeling if it reached the airways a little more then something would be done. They didn't pass on the cut and there was barely a mention of it in the media.


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## miriammary (26 Jul 2012)

They should have passed on the rate change, I have complained in person about this to my bank manager to no avail and with a very poor response. It's simple they don't care about their customers and their financial situation.  I would advise anyone going for a mortgage 'don't go there'  All of us with mortgages with them should make an appointment and complain in person. Complain to politicians in writing or in person. Make it a topic which won't die down. 

As a matter of interest which banks passed on the rate change and which didn't????????????   the 'good' banks to deal with?????????


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## JackMerridew (26 Jul 2012)

I don't think they are giving out any new mortgages so i don't think they are too worried about being uncompetitive.  If you're not in a position to switch, then you just got to grin and bear it.  The only way to make your point in my ipinion is to mount a campaing to encourage people not to save money with them and boycott their products. I'm also going to switch from the ESB just to make me feel better.


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## Leaky1 (26 Jul 2012)

I have complained to EBS about the discrepancy between the EBS and AIB SVR's but to no avail. I complained by phone and heard nothing positive back from them. I emailed them quite a while ago and got no reply at all! I have emailed them again since but I don't hold out much hope.


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## Techhead (26 Jul 2012)

Anyone know anybody in rte or tv3?. Bet they would answer then


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## airgead07 (26 Jul 2012)

*EBS - Mortgage variable rate*

any other ideas on how to kick start the campaign to put pressure on EBS? Joe Duffy?


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## Leaky1 (26 Jul 2012)

oh dear, I'm not sure I could live with myself if I became someone who "talked to Joe" 
Desperate times though....


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## Techhead (26 Jul 2012)

The consumer show on rte with Eddie Hobbs ?


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## Brendan Burgess (27 Jul 2012)

AIB increased their SVR today by 0.5% and have announced that 

EBS mortgage rates remain unchanged


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## kmce (27 Jul 2012)

thanks Brendan

So as  predicted all SVRs  will start increasing and the gap between those on Trackers and SVRs will widen.
Great news for those on Trackers but is there anything  those of us on SVRs can do to decrease our repayments or get a better deal?

rgds
k


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## Techhead (27 Jul 2012)

Well I don't know if they will start increasing as AIB have signalled many times they will need to up there rates. At the end of the day all the banks are in big trouble and they know they have customers by the balls. Of course they are going to try to capitalise on that. Is it right.... Do the government care....who knows what they think anymore.


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## Litecube (29 Jul 2012)

Reply from EBS below received this week when asked to explain why rates are higher than AIB and why they have not passed on the ECB rate cut. I currently pay €200 more now a month than I did when the rate was at 1.0%. Will their costs increase even further as more people default?
There is a whole generation trapped in negative equity and unsuitable homes, that are being held to ranson by the EBS and other banks.................when is the regulator going to stand in with regard to SVR paying for loss making trackers?

Thank you for taking the time to contact EBS.

As your query is so specific I would like to respond on behalf of EBS.

Following the announcement from the European Central Bank, EBS is currently
reviewing rates on all mortgage accounts.

EBS, like all other financial institutions, is in a situation at the moment
where the cost of accessing finance is higher than the cost being charged
to borrow funds. This is clearly not a sustainable position, so we are
reviewing rates in this market context.

While EBS is part of the AIB Group, it is a seperate brand with it's own
branch network and pricing policy. The EBS Standard Variable Rate reflects
the increased cost of funding to EBS, and it is in line with the Irish
market average and below relevant international comparisons.


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## Techhead (29 Jul 2012)

Confusing statement. After the ecb cut we have decided to review rates but we are reviewing with a view to increasing rather than decreasing?.  Are they mad enough to think they can increase rates above 4.33 in this climate.


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## LDFerguson (30 Jul 2012)

Techhead said:


> Confusing statement. After the ecb cut we have decided to review rates but we are reviewing with a view to increasing rather than decreasing?. Are they mad enough to think they can increase rates above 4.33 in this climate.


 
Only speculating, but my interpretation of the EBS wording would be "We're holding out to see if we can get away with not passing on the most recent ECB rate cut.  But we don't want to come out and categorically say we're not passing it on in case that generates negative publicity for us.  So we're sticking to the official line about _rates under review_ for the time being."


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## Techhead (30 Jul 2012)

Just read in the star this morning that the EBS boss has come out and hinted at a rate reduction to bring it more inline with AIB. Hopefully some good news on the way so.


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## Litecube (30 Jul 2012)

Anyone with an SVR EBS mortgage should keep the pressure on...paying bonuses and playing the poor mouth really do not tally well anymore.


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## kmce (31 Jul 2012)

hi all
I am meeting with the EBS next week to voice my concerns - what tact do you think I should take?
We  need to move for family reasons but have about 50k in negative equity and dont think they will do anything for us but need to ask.
Also very very annoyed that  we are paying 4.33% on a SVR when over 400,000 other mortgage holders ( across all the state owned banks ) are on  much much lower tracker rates ( best of luck to them).
How long should SVR mortgate holders be expected to subsidize loss making trackers - how is that right or fair?

Would love some advice on how to approach this meeting next week!
thanks
k


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## Techhead (31 Jul 2012)

Well the tracker argument is interesting as EBS have a very small amount of trackers on its books . Many are on variable and of that amount there is probably a high proportion of people with older mortgages. The newer variable customers over last 5 years or so are really feeling the heat as they have more capital to pay off. EBS have said it is the cost of funding that is pushing up their variable. Trackers are not the primary cause so I would not really push this point too much .

4.33 rate is however a punishing rate in this climate and people will remember these things in the distant future when they have a choice of lender. Are they shooting themselves in the foot?... Long term I think so


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## Litecube (31 Jul 2012)

For one action, I closed my savings account with them this month and will never open another account with the EBS again. Distant future can be now when it comes to current / savings account - vote with your feet.

There are many in the same boat with negative equity and paying this high SVR....When will the government step in?


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## Techhead (31 Jul 2012)

They won't . They simply don't have the spine for it!. As already stated , the banks are holding their customers captive hence there is no motivation to do anything about it.


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## SCA911 (1 Aug 2012)

Wrote to local TD re this recently and received responses from EBS and Central bank through him.  Any idea how I can copy and paste a scanned doc to here or is it even possible?


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## LDFerguson (1 Aug 2012)

wab0607 said:


> Wrote to local TD re this recently and received responses from EBS and Central bank through him. Any idea how I can copy and paste a scanned doc to here or is it even possible?


 
Does your scanner have Optical Character Recognition (OCR)?  If so, you should be able to use it to cut and paste the text of the letters. 

Alternatively, you could save the documents into a free cloud storage service like Dropbox or similar and post a link.  

Failing that, if you want to e-mail the documents to me liam@ferga.com I'll publish them and will e-mail you back a link that you can use to post them here.  Suggest you block out any personal information.


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## Techhead (2 Aug 2012)

Just out of curiosity does the response from EBS
Have anything of note?


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## shoegal (3 Aug 2012)

I met with EBS yesterday in Cork. I have recently come off a fixed rate. I wanted to increase my payments and/or put a lump sum towards the mortgage. My first question was regarding the rate and LTV. I was told there is absolutely no question of a different rate (I'm on the 4.33%), and EBS have dispensed with the whole LTV concept, it is now 4.33% for all  no matter how much equity one has. This is non negotiable. I was informed that EBS (and every other bank) are losing money on every single mortgage they have and will have to increase rates in the future if they want to survive as banks.


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## ryaner (3 Aug 2012)

shoegal said:


> I was informed that EBS (and every other bank) are losing money on every single mortgage they have and will have to increase rates in the future if they want to survive as banks.



This is far from true. Even if they were just to use deposit based funding, and took only the highest rate deposits (currently 4%), they'd still be able to make a small *gross* profit on the mortgages. The reality is that their blended funding costs are somewhere around 2-3% so they only really lose money on the trackers.


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## shoegal (3 Aug 2012)

ryaner said:


> This is far from true. Even if they were just to use deposit based funding, and took only the highest rate deposits (currently 4%), they'd still be able to make a small *gross* profit on the mortgages. The reality is that their blended funding costs are somewhere around 2-3% so they only really lose money on the trackers.


 
Totally, I think they guy might just have been on a bit of a rant as I suggested I might move elsewhere.


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## Techhead (3 Aug 2012)

And they don't have many trackers so his argument doesn't hold water at all


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## ryaner (3 Aug 2012)

shoegal said:


> Totally, I think they guy might just have been on a bit of a rant as I suggested I might move elsewhere.



They already know there is virtually no competition in the Irish mortgage market for movers. Most banks don't want to know unless you have an LTV of sub 50% usually.


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## Litecube (3 Aug 2012)

Guys...besides individual complaints to ebs, local td and the ombudsman,is there anything else that can be done in an attempt to get ebs to take a fair approach to their svr mortgage holders?...using the word member very loosely.


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## switcher1234 (3 Aug 2012)

We could organise a protest with posters etc. outside their banks in certain places????????????????????? 
  And do all the things mentioned already remove savings, write and meet bank managers in protest, write to politicians----tell everyone you know not to bank with EBS


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## Techhead (3 Aug 2012)

There are nearly 2500 hits on this forum. That's a decent response to any post!!


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## CJL (19 Aug 2012)

I too closed my savings account with EBS. I emailed them twice in July to complain about their disregard for their variable rate mortgage holders by refusing to reduce the ECB rate of 0.25%. They responded via email with the usual spin about reviewing rates over a non defined time period. I used my savings which were held in an EBS savings account to reduce the term of my loan and quite honestly will never open a savings account with them again. I also told them that their mortgage account holders have great memories in regard to their refusal to pass on rate reductions.


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## Techhead (20 Aug 2012)

The rates being charged are a joke. I'm surprised there is not more of a campaign. My fear for us all on variable with EBS is that if 4.33 is as low as they go then we are in big big trouble when the ECB stars raising its rates. 5% and beyond = massive number of defaults!!... Short sighted of them IMO


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## garbanzo (21 Aug 2012)

Just confirming I'm also on the 4.33% rate with EBS as well. Have made similar noises to EBS about passing on the most recent ECB rate cut but to no avail !


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## CJL (22 Aug 2012)

*ebs refusal to pass on ecb reduction*

Those of you fortunate enough to have savings in EBS should do as I did and remove said savings in protest and pay it off against your mortgage or invest it elsewhere. This will send a very clear message of your unhappiness to EBS. Alternatively email info@mail.ebs.ie to vent your anger.


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