EBS customers - you are not getting the 0.25% rate cut announced by AIB today

I asked AIB on Boards to explain why they didn't pass on the rate cut to EBS customers and this is what they said.
We will be introducing more new features across our other brands over the coming months to further benefit customers. We appreciate your feedback and we will certainly pass your feedback on to the relevant area.
Click to expand...

When I suggested that a rate cut is not a "feature" or product they had this to say.
Unfortunately, we are unable to provide further information at this time. We will inform our customer's of any changes.
Click to expand...
 
Boilerplate response from EBS about the SVR not being reduced that I received today.

Code: 
Dear Sir

In reply to your recent enquiry regarding the announcement by AIB of a
reduction in rates, please see below.

  EBS is a wholly owned subsidiary of AIB but a separate entity to AIB. I
  can assure you that EBS interest rates are constantly under review, and
  while we have been in a position to pass on 3 rate reductions over the
  past 18 months, unfortunately we are not in a position to reduce our
  variable rates at this point. EBS’s mortgage pricing reflects our
  operational running costs, the cost of risk attached to a mortgage loan
  and the cost of funding the EBS mortgage portfolio. EBS continues to
  actively review its pricing and mortgage offer in line with any changes
  to funding costs and other market developments.

  Should you remain dissatisfied and wish to refer this matter to the
  office of the Financial Services Ombudsman for independent adjudication.

Should you wish for me to keep you informed of any future reductions or
incentives available to existing EBS customers, would you be able to
forward me any of the following in order for me to trace your records
1. Account number
2. Customer number
3. Address

Once received I will ensure that you are kept informed of any future
pricing or incentive offers immediately

Yours Faithfully


XXXXXXXXXXXX QFA
EBS and Intermediary Mortgage Business
Block L4
Bankcentre
Ballsbridge
Dublin 4
 
Does anyone know the size of the EBS SVR loanbook. I would like to work out how much they are making by not passing on the 0.25% rate cut.
 
Hi Páid

They publish separate accounts from AIB here: [broken link removed]

They had €12 billion of owner occupied mortgages at 31 December 2015.
They had a lower percentage of tracker mortgages than the other banks, so I would guess that they had around €4 billion in trackers.
Let's assume it's around €2 billion of fixed rate loans.

That would leave around €6 billion of variable rate , non-tracker owner occupied mortgages.

So around €15m a year.

Brendan
 
Hi Paid,

I got pretty much the same response from EBS. Called them twice asking why they would not pass on the rate cut when previous cuts announced by AIB were passed on. I said I would be moving my savings away from them in the future not that it makes any difference to them! They said they would lodge it as a complaint and sent me a letter with the same response you got!
Richard Bruton called in the last month or so I mentioned the issue to him. I also contacted Finian McGrath on this issue.

I don't know what more I can do!!!...
 
Unfortunately, negative equity prevents me from switching. Sickening to read of the millions they get from not passing on these cuts..... And more sickening to watch an inept, disinterested government do anything about it.
 
Their lack of communication is a problem. Even for Haven, they left it month+ to release this positive news.

As for EBS, I am guessing they are not going to reduce any time soon, based on the fact they have adjusted their offerings with the 2% cash back.
 
I just called EBS there. What a waste of time.

Basically I said I was disgusted that they are still unwilling to negotiate a rate cut after AIB and then Haven announcing rate cuts.
Thanks Brendan I gave the guy on the phone all that info - 12billion in owner occupied mortgages and an estimate of what they have on their books for standard variable rates. The guy actually went silent on the phone...."We have not heard we will reduce the rates" is all he could say to me.

So frustrating....where to next? I can't switch as I'm in negative equity.
 
EBS has the lowest tracker amount of trackers on their books, 15% I believe. So should be the most profitable (presuming don't have an unproportionately large amount of bad loans). There they have 0.2% higher rates so am guessing they believe a large proportion of their customers are unable to move due to possible negative equity. Will gain a few customers through the carrot of 2% cashback so they probably are not going to adjust their rates any time soon unless others drop further. It appears 3.1% for a variable rate is the lowest that will be offered by any of the cartels
 
I am also stuck with EBS and can'tmove - I've been on to them, in to them and have written to them but they have no interest in their customers. For me they certainy are what can only be called a 'greedy bank' when all others can cut rates. The only offer I got where I could move bank was if I paid a substantial lump sum off my mortgage but I didn't have it. I findthe whole situation very frustrating. I switch insurance on car, house every year to get the best deal with no bother and can't understand why I can't switch mortgage when I have record of never missing a payment and have a good salary. Shame on EBS
 
What makes it even more sickening is that their parent company, AIB, recently posted profits of €1 billion for the first 6 months of this year. It's absolutely disgusting that they won't pass on the small reduction to EBS SVR mortgage holders. A local TD of mine said he'll be contacting Noonan and Dept of Finance regarding this....... I won't hold my breath waiting for a reply from them. But I'd advise all EBS SVR customers who are affected by this to contact their local TD's and do likewise. We have to apply more pressure on these crooks.
 
Spot on

I thought Michael Mc Grath was introducing a bill to cap interest rates.

At least to give the Central Bank power to cap rates.

Maybe it's in the pipeline, just the TDs are on their holidays.
 
mister32 said:
Spot on

I thought Michael Mc Grath was introducing a bill to cap interest rates.

At least to give the Central Bank power to cap rates.

Maybe it's in the pipeline, just the TDs are on their holidays.
Click to expand...


The Central Bank has made it very clear that they don't want those powers and by extension, won't be likely to use them even if the Government grants them the power to cap interest rates ... it's not a regulatory function and not what the ECB see's as the Irish Central Bank's function, as I understand it.

Michael McGrath played a blinder by proposing that Bill, he got plenty of good press for himself and FF, but knew fine well all he was doing was kicking the can down the road because the Central Bank won't use the power if given it and yet, the politcans can claim they tried to do something to help the public.

There is absolutely no reason why the Government, as majority shareholder, (not as the Government) cannot immediately instruct the Board of it's two Banks (AIB & PTSB, who together must have circa 50% of the Homeloan market) to cut their rates if they wanted to. Very simple, very effective.. but never going to happen because this is a big game of cat & mouse with the public. The ultimate goal of the State is to sell these two Banks back into private ownership and to do that, they need to show them to be making signifcant profits .. thats where their customers come in !
 
I am about to switch to EBS on an 80% loan to value at 3.5% with 2% cashback on 185K mortgage. A great improvement on the 4.5% I am being charged by PTSB currently. I hope I am making the right choice?
 
mouse1 said:
I am about to switch to EBS on an 80% loan to value at 3.5% with 2% cashback on 185K mortgage. A great improvement on the 4.5% I am being charged by PTSB currently. I hope I am making the right choice?
Click to expand...
you can't loose - there is no lockin so get your cashback and move onto the bank with a cheaper rate when you can :)
 
You must log in or register to reply here.
Back
Top