# 7th July - ECB increases rates by 0.25%



## NorfBank (7 Jul 2011)

As expected the European Central Bank has increased its rates again,  this time by 0.25% to  1.5%

This will mean an increase of 0.25% for those on tracker  mortgages. We must wait and see how much the banks now raise their variable  rates on the back of this.

A 0.25% increase will result in a rise  of around €15 per  €100,000 borrowed so a €300,000 mortgage holder will  have to come up with around €45 per month extra for their mortgage  repayment.

[broken link removed]


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## mcaul (9 Jul 2011)

Remember, for those who are still getting mortgage tax relief and not maxing it, this will increase too and offset a small amount of the increase. The media never mention this as they hate to have a positive angle on anything these days


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## potnoodler (10 Jul 2011)

mcaul said:


> Remember, for those who are still getting mortgage tax relief and not maxing it, this will increase too and offset a small amount of the increase. The media never mention this as they hate to have a positive angle on anything these days


 

Doesnt that just mean that more desparately needed taxpayers money is wasted. That tax relief never should have been there.


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## oldnick (10 Jul 2011)

The "desperately needed taxpayers money" is  largely being used to pay off reckless foreign banks - whereas any tax relief and/or tax incentives for property purchases  helps stave off the increasing number of repossessions and reduce the increasing worry of tens of thousands,often young,  Irish property owners - a worry that increases with every rise in interest rates - rises that this country do not need.

Anything that reduces the suffering caused by interest rate increases is to be welcomed.


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## mcaul (11 Jul 2011)

But the banks were also reckless to their shareholders by offering tracker rates - a reason rarely or never heard for the dismissal of the directors even though it was reckless.


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## Manuel (12 Jul 2011)

Any word on what rate hike BoI will apply to their SVR?


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## potnoodler (29 Jul 2011)

oldnick said:


> The "desperately needed taxpayers money" is largely being used to pay off reckless foreign banks - whereas any tax relief and/or tax incentives for property purchases helps stave off the increasing number of repossessions and reduce the increasing worry of tens of thousands,often young, Irish property owners - a worry that increases with every rise in interest rates - rises that this country do not need.
> 
> Anything that reduces the suffering caused by interest rate increases is to be welcomed.


 
I'm not saying to deprive people of it as I can understand its like child benefit to a lot of people,
I remember when applying for my mortgage the advisor automatically added the TRS into our application along with everything else, and did it while barely mentioning.
How ironic that this was tax rebate was added to earnings to generally up the loans we all borrowed from the same foreign banks, and now we're paying the price amongst others


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## megazoinks (2 Aug 2011)

its 6.1 % in some banks here, now that's nuts at this moment on time


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## paperclip (9 Aug 2011)

megazoinks said:


> its 6.1 % in some banks here, now that's nuts at this moment on time




Because of all the negative equity, most people are stuck and cant switch.

How can some of these banks get away with rates this high? I think PTSB and EBS are the worst?

Can they just keep raising their rates as much as they like?

I'm with BOI, but who's to say they wont pull this.


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## ivannomonet (9 Aug 2011)

6.1% isnt high...10 years ago rates were at 13 or 14%


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## OkeyDokey (9 Aug 2011)

ivannomonet said:


> 6.1% isnt high...10 years ago rates were at 13 or 14%



I've been paying a mortgage for 13 years. It has not gone over 4%.


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## newirishman (9 Aug 2011)

OkeyDokey said:


> I've been paying a mortgage for 13 years. It has not gone over 4%.



Interest rates have been (significantly) above 10% until 1993 and have only come down since then. Rates were only significantly below the 6% mark after 2002. 

http://www.*****************.com/history-of-mortgage-rates-in-ireland.html


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## Guns N Roses (10 Aug 2011)

I read an article in the Irish Indepedent recently that suggested that the ECB may not increase their rates for the next year due the the economic crisis in Italy & Spain. 

Sounds like good news for Tracker Mortgages.


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## PaddyW (10 Aug 2011)

Guns N Roses said:


> I read an article in the Irish Indepedent recently that suggested that the ECB may not increase their rates for the next year due the the economic crisis in Italy & Spain.
> 
> Sounds like good news for Tracker Mortgages.


 
That would be great news if true


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## Paulk (10 Aug 2011)

Some of the economists are now saying that the ECB will regret its latest .25% interest hike due to the crisis on the bond markets spiralling out of control. 
Wouldn't it be great if they even reversed the last ECB interest hike?!


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## Shawady (12 Aug 2011)

A reversal of the recent rate increase may be a possibility.

http://www.independent.ie/business/...rs-as-interest-rate-cut-on-cards-2846477.html


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## Manuel (12 Aug 2011)

Manuel said:


> Any word on what rate hike BoI will apply to their SVR?


 
In light of Boucher's announcement the other day, which was no big shock, anyone care to predict to what extent BoI will up their rates?


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## misterchuck (12 Aug 2011)

They will not raise it. They cannot risk more people getting into arrears. They will leave it as is, for the foreseeable future. They intimated an increase to gauge public reaction.


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## Sunny (12 Aug 2011)

misterchuck said:


> They will not raise it. They cannot risk more people getting into arrears. They will leave it as is, for the foreseeable future. They intimated an increase to gauge public reaction.



50bps next month. Guess the public reaction was positive. All the other banks will follow. Days of cheap credit are over. Doesn't matter about the ECB now.


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## Protocol (12 Aug 2011)

misterchuck said:


> They will not raise it. They cannot risk more people getting into arrears. They will leave it as is, for the foreseeable future. They intimated an increase to gauge public reaction.


 
Announced increase of 0.5% in the SVR today.

Will be 3.99% from 22nd Sep.


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## misterchuck (12 Aug 2011)

Well I got that one right!


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