This hasn't really got anything to do with funding. More that the interest rate rises in EBS far above the ECB rises break pre election promises and contradict the govt reassurance that they are concerned about struggling mortgage holders. Instead they have steadily increased the burden on variable rate mortgage holders.
ECB cuts interest rate to 1.25%
- Thread starter TheJackal
- Start date
LOL they have no choice but to pass it on to those with tracker mortgages, why do they even mention it ? LOL
The EBS is to reduce its standard variable interest rate by 0.25% from 4.93% to 4.68%, the bank announced today.
In other news National Irish Bank are to increase theirs by 1%.
I've always wondered that too, it's not like they have any other option but to pass it on.
In other news National Irish Bank are to increase theirs by 1%.
It will be interesting to see how things develop with this announcement as Enda Kenny has indicated he was prepared to consider introducing legislation to compel banks to adjust their rates accordingly. Michael Noonan also said last week banks must pass on the interest rate reduction to customers.
Brendan Burgess
Founder
- Messages
- 54,223
I have posted a table of the SVRs here.
AIB seems to be charging less on its mortgages than it is paying for some of its deposits. This makes no sense.
Although PTSB has passed on this rate cut and NIB has increased its rates by 1%, PTSB is still 1.5% dearer.
I just can't see that the government or the Central Bank has any role in telling banks to pass on rate cuts.
Brendan
AIB seems to be charging less on its mortgages than it is paying for some of its deposits. This makes no sense.
Although PTSB has passed on this rate cut and NIB has increased its rates by 1%, PTSB is still 1.5% dearer.
I just can't see that the government or the Central Bank has any role in telling banks to pass on rate cuts.
Brendan
I agree that in respect of Banks/institutions that have not availed of Gov support this type of action could be viewed as interference in the market. However where institutions have been given Gov support I would think that the Gov are entitled to exert some leverage in this & other areas.
To some extent it may be seen as unwarranted but dependency on public support whilst at the same time charging heavy margins on a sector of the same public could be seen as somewhat conflicting.
Anybody heard from Halifax/BOS yet in relation to the latest cut?
I have one of their price promise mortgages where the rate they charge will never be more than 1.5% above the ECB rate, so its due to come down in line with the last cut. Havent received any correspondance from them yet.
I have one of their price promise mortgages where the rate they charge will never be more than 1.5% above the ECB rate, so its due to come down in line with the last cut. Havent received any correspondance from them yet.
My Ulster Bank tracker changed but it wasn't until late November so the change in the mortgage payment was minimal.
Im with Ulster Bank tracker also.. still havent received the cut.. my last mortgage payment came out of bank 27th November but still the same amount and no correspondence from them either.. must phone and see whats happening, did you get a letter Sunny?
Got one earlier this week. Can't remember the date that they said the cut was effective from though. I will check this evening.
I have not got an interest rate change letter yet from PTSB either and my monthly payment is 5th of each month. When rates increase PTSB always increase the monthly repayment asap. I wouldn't mind waiting a month if they were consistent and took the same time with applying increases and decreases.
Just an update. Still no letter received from bos. Rang a number in Scotland today to enquire what was going on? (call centre). The guy told me a letter was posted to me on the 30th November to inform me of rate reduction. As yet I haven't received it.
Mortgage was takenout today and there was no reduction. Its due on the 3rd of every month, but bing a Saturday this month,only left my account today.
Now by my reckoning, the ECB announced their rate cut and so BOS probably had 30 days maximum to pass it on, which would bring it up to November 3rd!
Hopefully the letter will arrive at some stage this week so I csn see what exactly it has to say.