# Some banks have not adjusted rates yet after ECB rise. Why?



## Petal (13 Mar 2006)

Folks,

Just wondering. I thought that once the ECB increase had come into effect that all the tracker rates would automatically go up by 0.25%. However, it appears that some have not done that (yet). Whereas for example the ICS tracker has gone up to 3.6%, the PTSB still remains at 3.35% and when I rang all I was told is that no notice had reached them yet from head-office and the quoted rate was valid. Isn't that a bit odd? Or can the banks just decide whenever they want to adjust the rates. Of course they could decide to just decrease the ECB+ rate, but that seems extremely unlikely...
Any thoughts or observations on this?


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## DrMoriarty (13 Mar 2006)

Somewhere in your small print it must specify a time limit. With the NIB tracker, it's a month.


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## asdfg (13 Mar 2006)

With tracker rate it depends on the term and conditions. Some will apply the increase with immediate effect but not increase the repayment until the next payment or even the one after that depending on the timing. 

Others apply the increase wef the first of the following month.


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## GeneralZod (13 Mar 2006)

When the ECB increased to 2.25% on 6th Dec AIB didn't adjust their tracker rate until 13th Dec. 
The increase to 2.5% happened on 8th March so I'm expecting them to adjust the rate 
on Wednesday 15th March.


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## jpd (13 Mar 2006)

Of course, when the ECB rate goes down again (it will eventually) hopefully the rates will come down as quickly/slowly as they went up!


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## GeneralZod (13 Mar 2006)

jpd said:
			
		

> Of course, when the ECB rate goes down again (it will eventually) hopefully the rates will come down as quickly/slowly as they went up!



That's something AAM or even better the financial regulator should keep track of (if they're not already?)
Not for enforcement just for consumer information purposes.


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## ClubMan (13 Mar 2006)

jpd said:
			
		

> Of course, when the ECB rate goes down again (it will eventually) hopefully the rates will come down as quickly/slowly as they went up!


 As mentioned above the _Ts&Cs _of each tracker mortgage agreement will state the period of time within which _ECB _rate changes will be reflected in the tracker rate. I imagine that the same period applies to both rate increases and decreases. However the period may differ from one mortgage/lender to another. If somebody wants to volunteer to collate these details for all tracker mortgages on the market and post the summary details here (or in the _Financial Best Buys_ forum) then that would be great.


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## kirvos (13 Mar 2006)

Hi, AIB raised all rates, lending and deposit. by 0.25pc in a statement today. Announcement in business pages tomorrow. I expect different products have different applicable dates for new rates
K


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## GeneralZod (14 Mar 2006)

Taking effect from COB Tuesday 14th.

I see they're also raising their on-line savings rate to 3.5% which takes 
them above NR's 3.45% from March 31st.


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## ClubMan (14 Mar 2006)

But aren't there various terms & conditions that need to be met in order to qualify for the best rate on offer from _AIB_? See here.


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## Petal (14 Mar 2006)

Thanks guys for all the info. I just found it a bit unhelpful when I rang up PTSB to ask about this and they couldn't even tell me what it is going to be. I've got approval from a number of banks, but with the increase of interest rates all the offers I received will have changed by the time I finally found a house and draw down a mortgage. I think there should be more transparancy for the consumer in general, a great effort has to be made to collect all this information. But I guess, this is where the brokers come in handy...


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## ClubMan (14 Mar 2006)

When shopping around ask lenders for a copy of the terms & conditions governing the loan for which they are giving you provisional approval and that should make everything clear.


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