ECB Cuts by 0.75% But Irish Banks Keep Mortgage Rates Largely Unchanged

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ButteredUp

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The ECB have cut their main rate by 0.75% thus far.

And the ECB is expected to go much further. Just today Legard said that future cuts could be even larger.

But yet the rates that I can see available for my pending mortgage renewal are unchanged.

Why are Irish banks not responding (apart from tracker rates and a small number of changes)?

Is the cause lack of competition?

Where is the media pressure on Irish banks to cut?
 
The long drawn out and tortuous repossession process when delinquent borrowers default is one reason that Irish mortgage rates are higher than in other Eurozone jurisdictions. E.g.:

Man continues living in home despite no payment since 2009

https://www.breakingnews.ie/ireland/dublin-man-continues-to-live-in-ballsbridge-home-despite-e2-3-million-debt-court-hears-1684224.html Mr O’Connell, [the bank's barrister], told the court that since having obtained a repossession order against the couple in 2011, Mr Farrington had made...
www.askaboutmoney.com
 
ButteredUp said:
But yet the rates that I can see available for my pending mortgage renewal are unchanged.
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Who is the lender, what type of mortgage is it (e.g. PPR, buy to let, holiday home, etc.), and what type of rate (e.g. variable, fixed, LTV, "green" BER based etc.)?

Perhaps the rate on the offer/approval in principle is subject to review based on rates prevailing at that time?
 
ClubMan said:
BTW the ECB main refinancing rate has been cut three times this year, by a total of 1.1%.
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In the past, the Refinancing Rate was regarded as the "main rate".

These days, the Deposit Rate is regarded as the "main rate".

The Deposit Rate has been cut by 0.75%.

ClubMan said:
Who is the lender, what type of mortgage is it (e.g. PPR, buy to let, holiday home, etc.), and what type of rate (e.g. variable, fixed, LTV, "green" BER based etc.)?

Perhaps the rate on the offer/approval in principle is subject to review based on rates prevailing at that time?
Click to expand...

PPR
Fixed until early next year
Poor BER rating
LTV under 30%.
3.6% with Avant is the best rate I can see for a while now.
 
ButteredUp said:
In the past, the Refinancing Rate was regarded as the "main rate".

These days, the Deposit Rate is regarded as the "main rate".

The Deposit Rate has been cut by 0.75%.
Click to expand...
The main refinancing rate is still the rate that is relevant for consumers such as borrowers and depositors.
ButteredUp said:
Fixed until early next year
Click to expand...
Isn't that your answer so?
You have been offered a fixed rate so it's not going to change because of ECB rate changes?
Unless you ask them to review the offer?
 
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