EBS -Mortgage variable rate

thanks Brendan

So as predicted all SVRs will start increasing and the gap between those on Trackers and SVRs will widen.
Great news for those on Trackers but is there anything those of us on SVRs can do to decrease our repayments or get a better deal?

rgds
k
 
Well I don't know if they will start increasing as AIB have signalled many times they will need to up there rates. At the end of the day all the banks are in big trouble and they know they have customers by the balls. Of course they are going to try to capitalise on that. Is it right.... Do the government care....who knows what they think anymore.
 
Reply from EBS below received this week when asked to explain why rates are higher than AIB and why they have not passed on the ECB rate cut. I currently pay €200 more now a month than I did when the rate was at 1.0%. Will their costs increase even further as more people default?
There is a whole generation trapped in negative equity and unsuitable homes, that are being held to ranson by the EBS and other banks.................when is the regulator going to stand in with regard to SVR paying for loss making trackers?

Thank you for taking the time to contact EBS.

As your query is so specific I would like to respond on behalf of EBS.

Following the announcement from the European Central Bank, EBS is currently
reviewing rates on all mortgage accounts.

EBS, like all other financial institutions, is in a situation at the moment
where the cost of accessing finance is higher than the cost being charged
to borrow funds. This is clearly not a sustainable position, so we are
reviewing rates in this market context.

While EBS is part of the AIB Group, it is a seperate brand with it's own
branch network and pricing policy. The EBS Standard Variable Rate reflects
the increased cost of funding to EBS, and it is in line with the Irish
market average and below relevant international comparisons.
 
Confusing statement. After the ecb cut we have decided to review rates but we are reviewing with a view to increasing rather than decreasing?. Are they mad enough to think they can increase rates above 4.33 in this climate.
 
Techhead said:
Confusing statement. After the ecb cut we have decided to review rates but we are reviewing with a view to increasing rather than decreasing?. Are they mad enough to think they can increase rates above 4.33 in this climate.
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Only speculating, but my interpretation of the EBS wording would be "We're holding out to see if we can get away with not passing on the most recent ECB rate cut. But we don't want to come out and categorically say we're not passing it on in case that generates negative publicity for us. So we're sticking to the official line about rates under review for the time being."
 
Just read in the star this morning that the EBS boss has come out and hinted at a rate reduction to bring it more inline with AIB. Hopefully some good news on the way so.
 
Anyone with an SVR EBS mortgage should keep the pressure on...paying bonuses and playing the poor mouth really do not tally well anymore.
 
hi all
I am meeting with the EBS next week to voice my concerns - what tact do you think I should take?
We need to move for family reasons but have about 50k in negative equity and dont think they will do anything for us but need to ask.
Also very very annoyed that we are paying 4.33% on a SVR when over 400,000 other mortgage holders ( across all the state owned banks ) are on much much lower tracker rates ( best of luck to them).
How long should SVR mortgate holders be expected to subsidize loss making trackers - how is that right or fair?

Would love some advice on how to approach this meeting next week!
thanks
k
 
Well the tracker argument is interesting as EBS have a very small amount of trackers on its books . Many are on variable and of that amount there is probably a high proportion of people with older mortgages. The newer variable customers over last 5 years or so are really feeling the heat as they have more capital to pay off. EBS have said it is the cost of funding that is pushing up their variable. Trackers are not the primary cause so I would not really push this point too much .

4.33 rate is however a punishing rate in this climate and people will remember these things in the distant future when they have a choice of lender. Are they shooting themselves in the foot?... Long term I think so
 
For one action, I closed my savings account with them this month and will never open another account with the EBS again. Distant future can be now when it comes to current / savings account - vote with your feet.

There are many in the same boat with negative equity and paying this high SVR....When will the government step in?
 
They won't . They simply don't have the spine for it!. As already stated , the banks are holding their customers captive hence there is no motivation to do anything about it.
 
Wrote to local TD re this recently and received responses from EBS and Central bank through him. Any idea how I can copy and paste a scanned doc to here or is it even possible?
 
wab0607 said:
Wrote to local TD re this recently and received responses from EBS and Central bank through him. Any idea how I can copy and paste a scanned doc to here or is it even possible?
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Does your scanner have Optical Character Recognition (OCR)? If so, you should be able to use it to cut and paste the text of the letters.

Alternatively, you could save the documents into a free cloud storage service like Dropbox or similar and post a link.

Failing that, if you want to e-mail the documents to me liam@ferga.com I'll publish them and will e-mail you back a link that you can use to post them here. Suggest you block out any personal information.
 
I met with EBS yesterday in Cork. I have recently come off a fixed rate. I wanted to increase my payments and/or put a lump sum towards the mortgage. My first question was regarding the rate and LTV. I was told there is absolutely no question of a different rate (I'm on the 4.33%), and EBS have dispensed with the whole LTV concept, it is now 4.33% for all no matter how much equity one has. This is non negotiable. I was informed that EBS (and every other bank) are losing money on every single mortgage they have and will have to increase rates in the future if they want to survive as banks.
 
shoegal said:
I was informed that EBS (and every other bank) are losing money on every single mortgage they have and will have to increase rates in the future if they want to survive as banks.
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This is far from true. Even if they were just to use deposit based funding, and took only the highest rate deposits (currently 4%), they'd still be able to make a small gross profit on the mortgages. The reality is that their blended funding costs are somewhere around 2-3% so they only really lose money on the trackers.
 
ryaner said:
This is far from true. Even if they were just to use deposit based funding, and took only the highest rate deposits (currently 4%), they'd still be able to make a small gross profit on the mortgages. The reality is that their blended funding costs are somewhere around 2-3% so they only really lose money on the trackers.
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Totally, I think they guy might just have been on a bit of a rant as I suggested I might move elsewhere.
 
shoegal said:
Totally, I think they guy might just have been on a bit of a rant as I suggested I might move elsewhere.
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They already know there is virtually no competition in the Irish mortgage market for movers. Most banks don't want to know unless you have an LTV of sub 50% usually.
 
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