Delay in getting ECB rate cut on tracker mortgage (Ulster Bank/AIB)

[landlord]

Anyone previously with Ulster Bank for their mortgage like myself would have recently changed to AIB.

I have a ECB tracker mortgage….

Previously with Ulster Bank I received a letter saying
The European central bank announced the decrease of 0.25% in its rate effective on 11th of June 2024. Current interest rate 5.25% your new interest rate is 5%. You will see this change of repayment on the 27th of June 2024.

Now with AIB and the next 0.25% cut (and 0.35%technicsl cut)
The European central bank announced the decrease of 0.6% in its rate effective on 1st October 2024. Current interest rate 5 % your new interest rate is 4.4%%. You will see this change of repayment on the 27th of November 2024.

With Ulster Bank, the reduction was reflected in my repayment approximately two weeks after it became effective. With AIB almost 2 months!!!!

Does that seem correct? Thanks

 

[FinCork]

my wife got her letter from AIB yesterday informing her of the reduction on her tracker, should be in the post hopefully!

 

[MartinFMCI]

No it doesn't sound correct.
10 interest rate raises and they all were effective from your next payment date. But interest rate reductions take 2 months to become effective !!
I'm in the exact same boat, it stinks of typical AIB scam another couple of extra months of extra interest out of us. I'm sure they will come up with some plausible excuse, but it's plain to see what they are doing, and it's not the first time. I forsee another "tracker mortgage compensation scandal" coming in the next few years when it gets looked at after being brought to light by enough complaints. AIB sold me a useless scam loan protection insurance many years ago (nearly 30 years ago) that was ment to cover me in case of unemployment on a car loan, that wasn't worth the paper it was written on, and when I needed to avail of it, it didn't cover exactly the purpose it was sold to me for. I ended up with a bad credit rating because of it and I wasn't able to get a loan for I think 10 years because of it. An ex employee of the bank informed me of the scam many years later, after many years of not knowing why I was being turned down for any loan I applied for.
Hence the reason I did not give AIB my business when it came to getting a mortgage, but due to Ulster bank selling out, I have ended up now with my mortgage with AIB.
ECB rate reductions as I understand it, are ment to take effect immediately, as did the rate increases. But once again the banks are doing what benefits them and not their customers. Why, because they get away with it, always did and always will. They probably will have to compensate us in the long run, after the scam is brought to light. But by then half, or more of the customers will have left and they will have made more out of us than they would have done if they did the right thing in the first place. Even their own website says that the reductions will take place in September or October, NOT November. The rate reductions came before my September payment, and long before my October payment, but, like yourself, I won't see a reduction until November, more than 2 full months after the rate reductions.
As you can tell, I'm am quite frustrated with this situation, and it's more about the principal than the money.
AIB, ripping off customers since 1966. What's new.....