Are bank passing on ECB interest rate cut

S

SteveW9

Registered User
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This may seem like a stupid question but currenly the ECB interest rate is 3.25%, however when I look at the variable mortgages on offer with TSB the interested rate is 5.5%, this is a big difference .
Is any of the reduction from the ecb being passed onto the customer here?
 
Banks' variable rates are up to their own discretion. They may or may not reduce the rate.
 
I suppose.
anybody know a site where you can independently compare variable mortgages rates on offer in Ireland
 
demoivre said:
mortgages.ie.
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No mention of Halifax or EBS variable rates on that site and the NIB variable rate shown is incorrect.
AIB has the lowest variable rate at 4.5%
ECb rates due to fall again in about 45 minutes time. I wonder if the lenders will drop variable rates any lower?
 
irishlinks said:
No mention of Halifax or EBS variable rates on that site and the NIB variable rate shown is incorrect.
AIB has the lowest variable rate at 4.5%
ECb rates due to fall again in about 45 minutes time. I wonder if the lenders will drop variable rates any lower?
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fingers crossed they do

with the economy in the mess its in, with 4k a week more signing on and people spending money up north i think they will have to....the more money in peoples pockets the less chance of the bank incurring bad debts on unaffordable mortgages, though people im sure will still head for Bandit country regardless & rightly so
 
SteveW9 said:
cowboys........ 2% over the ecb rate for a variable rate seems very high
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Not exactly an expert myself, but it was explained to me that banks don't borrow from the ECB, they borrow from each other on the open market. There's not much money floating around at the moment, and banks are very unsure of each others liquidity positions, so they are borrowing at a higher rate which in turn they are passing on to customers.
 
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