ECB cuts interest rates by 0.5 points

it is totally up to the banks what they do when it come to variable and fixed rates. the trackers are great for the next 6 months. but once the swing in the rates happens which won't be for 6 to 9 months then those mortgages are the first to get hit.
Like what has been said before Enjoy it while we can.
Mike
 
KBC ( IIB ) slow off the mark again, I just phoned them and they have no changes just yet
 
From RTE: Bank of Ireland and Permanent TSB are both passing on the interest rate cut in full on homeloans.
 
Ref KBC, if an mortgage holder with them has a tracker are they legally obliged to pass on the rate cut?
 
Presumably what is meant there is that, due to the cyclical nature of the interactions between inflation, interest rates etc, as interest rates bottom out, people / companies will start to borrow again to buy, thereby starting the cycle of demand-related inflation again, which will thus make the ECB look at raising rates again to limit inflation.

It's like the mixer unit in a bath, they're constantly tweaking the hot and cold water supply as the temperature is never quite right!
 
MikeLavelle said:
it is totally up to the banks what they do when it come to variable and fixed rates. the trackers are great for the next 6 months. but once the swing in the rates happens which won't be for 6 to 9 months then those mortgages are the first to get hit.
Like what has been said before Enjoy it while we can.
Mike
Click to expand...

No one knows what will happen in 6 to 9 months.

And when\if rates go up you can be very certain that variable rates will also increase. I dont think any variable rates did not increase when the rates were increased from December 05 on.
 
Agreed. Nobody has a clue about 6 - 9 or even 2 months ahead with the speed things are going at. Its purely a guessing game...
 
Dinging said:
Ref KBC, if an mortgage holder with them has a tracker are they legally obliged to pass on the rate cut?
Click to expand...

Is this true regardless of whether the property is owner occupied or rented? ( The bank could tell the difference because of Tax Relief at Source)
 
It is expected that rates might increase by 0.25% before the end of the year to level off at 2%. like someone said before it is nearly free money at the moment and for the ECB/ commercial banks to make money they need to operate at a 2% average. I do not have 30 years experience in the banking sector, i am only going on what i have been told at various conferences i have been to since the new year by "Economic Experts".

Ref: aristotle25
variable rates always go up first. Like casinos the house/bank always wins as they say.
 
MikeLavelle said:
Ref: aristotle25
variable rates always go up first.
Click to expand...

But thats not what you said before...

"trackers are great for the next 6 months. but once the swing in the rates happens which won't be for 6 to 9 months then those mortgages are the first to get hit."
 
Oh Mike, not the same "Economic Experts" that seen none of this coming??? I hope that these various conferences you have been attending gave you a nice free lunch so at least your time will not have been completely wasted.
 
aristotle25 said:
But thats not what you said before...

"trackers are great for the next 6 months. but once the swing in the rates happens which won't be for 6 to 9 months then those mortgages are the first to get hit."
Click to expand...

They are great for the next 6 to 9 months then once the rates start to increase then they will be the first to suffer.
Apologies if i replied incorrectly.
 
venice said:
Oh Mike, not the same "Economic Experts" that seen none of this coming??? I hope that these various conferences you have been attending gave you a nice free lunch so at least your time will not have been completely wasted.
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honestly if people listened this was coming 3 years ago. I am an ex accountant turned Financial services company owner and in all honestly no one wanted to listen to anyone saying this would happen 2 years ago. we treated anyone who said that as if they had a bad smell and turned our back on them.

I have to say hand on heart i thought i might but no where near as bad as it has been and will be.
 
MikeLavelle said:
It is expected that rates might increase by 0.25% before the end of the year to level off at 2%. like someone said before it is nearly free money at the moment and for the ECB/ commercial banks to make money they need to operate at a 2% average. I do not have 30 years experience in the banking sector, i am only going on what i have been told at various conferences i have been to since the new year by "Economic Experts".

Ref: aristotle25
variable rates always go up first. Like casinos the house/bank always wins as they say.
Click to expand...


Not one sane person is saying rates are going up this year. What conferences were you at?
 
Another pay increase for me today - lovely stuff. It's not all doom and gloom folks - I'll bet there's many a happy couple like [broken link removed] who are delighted to see rates / house prices falling :D.
 
Sunny said:
Not one sane person is saying rates are going up this year. What conferences were you at?
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I'm not going to split hairs on that one Sunny.
The banking system can not operate for a long period with rates under 2% without further government bailouts. that is why the reduction today brought the ECB to a record low. there comes a point where it does not become profitable for the ECB and banks to lend. we are extremely close to that at the moment.
 
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