# EBS are not reducing rates for buy-to-let!!



## Privinv (5 Dec 2008)

Hi 
EBS informed me last week they are not passing on the two reductions in interest rate to buy-to-let customers. I do not know what the position with yesterdays cut is.Their rate is 5.88% variable. This is some cheek!!  It is time for me to move my business elsewhere. Has one else had the same information from EBS?


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## Jamella (5 Dec 2008)

hi,
I am having the same problem with the EBS. I have a Buy to Let mortgage which is now being classed as a 'commerical loan'. This wording was never used before to describe my mortgage. I wrote a complaint to them regarding the fact that they werent passing on any of the 2 interest rate decreases. Their subsidiary 'Haven Mortgages' has passed on one of these rates decreases of 0.5% to their Buy to let mortgages and advertised this in the Irish Independent on the 25th Nov. 

Their wording is 'Loans at an investor variable interest rate drawn down before 24/06/08 will be subject to a rate decrease of 0.50%'.

EBS is clearly discriminating between their direct customers who went dealt directly with a branch or agent as opposed to those who went through a broker. I have now decided to move my mortgage to a lender who will pass on the rate decreases as I feel the EBS wouldn't have any issues passing on any rate increases if they were announced.


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## MentalNote (5 Dec 2008)

You might want to look here:


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## Jane1 (5 Dec 2008)

Hi Privinv, 
            I got a similar reply from EBS last week that they are not passing on the last two rate cuts. I am expecting a cut after this 0.75% cut and if not I am moving on. EBS has 500 million exposed in the commercial business side of things and so keeping the RIP loans rates high is protecting their profits.
As I stated in a previous post every EBS member I come across is on a different rate... I'm not on 5.88% but 5.53%.
Thats very interesting about Haven Mortgages.


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## laila (11 Dec 2008)

EBS not passing on rate cuts to buy to let mortgages. Am annoyed and would leave them if I would not be biting off my nose to spite my face - as it costs to move mortgage provider. In these credit crunch days have any of you posters found an alterntive mortgage provider who would pay costs to move my mortgage to them? Thanks. Meanwhile I am lobbying the EBS.


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## VOR (12 Dec 2008)

laila said:


> In these credit crunch days have any of you posters found an alterntive mortgage provider who would pay costs to move my mortgage to them? Thanks. Meanwhile I am lobbying the EBS.


 

It's a buy to let. Therefore it's a business. Why should any bank pay your costs?


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## caraine (22 Dec 2008)

all talk by banks building societies about euribor not being close to the ecb rate is their usual lies and spin 19/12/08 3mth euribor =3.1 per cent  1 month =2.8 per cent and the rate the banks building societies in ireland do business at is2.23 per cent so the banks pr people are right there is a discrepency euribor is cheaper  ecb =2.5 v1day euribor =2.237.Also if they play with euribor why not offer mortgages like every other eu country eg 90 day euribor +.5  or +.85  or+1.0   or any other margin they think they can get away with 90 day +.85 is the general margin on the continent at the moment  which would make the banks rate on 19/12/08 3.95 per cent.They at the moment are doing what is second nature to them ripping off the ordinary joes who are bailing them out  and charging us for the silly money they gave out to silly people for silly projects.ps why dont rte jounos challenge these bank people when they say this euribor rubbish have rte not got access to google [tip for their financial journos type in CURRENT EURIBOR RATES and be able to take the bankers to task for their quarter truths.


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## timmyotoole (23 Dec 2008)

the reality is that none of the banks can borrow at 1 day euribor, any of them who can borrow on a 3 month basis are doing well


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## marksa (24 Dec 2008)

timmyotoole said:


> the reality is that none of the banks can borrow at 1 day euribor, any of them who can borrow on a 3 month basis are doing well


 
of course banks can borrow at 1 day (overnight) but it would be extremely risky and imprudent to have any sort of portion of funding based on it. What happens if you can't get an offer from another bank to meet your requirements? Your liquidity is ****-d up. In fact, I believe the Irish regulatory liquidity regime will mean that a very small portion of the funding can be done at overnight. 

Also, on original thread, I am surprised no-one has mentioned the reason why EBS and others are not passing the reduced funding rates on to buy-to-let or RIPs. Most logical reason is that the market value of the property has gone through the floor and a vast chunk of this particular loan category are non-performing or under pressure from lower vacancy, rental yield etc. In other words, far riskier than for example a residential mortgage. It's much more likely for a RIP to default so they need a bigger income cushion to cover losses through defaults.


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