What is the fairest rate to use for comparing lenders, both for the present time and for previous periods?
Announcement | SVR |
10 March 2003 | 3.68% |
29 January 2004 | 3.3% |
12 February 2007 | 4.6% |
16 June 2008 | 5.25% |
10 October 2008 | 5.5% |
26 April 2010 | 2.75% |
1/4/2013 | 4% |
186/2013 | 4.4% |
April 2014 | 4.4% |
1/5/2015 | 3.9% |
18 March 2016 | 3.67% |
15 March 2018 | 3.15% |
I only keep records since 2016 for BoI. Archive.org might help you get something going back longer.
- Does anybody have the dates and interest rates for BOI rate changes from before 2015?
From memory BoI were the first to start pricing fixed rates lower than variable around 2014 and the other lenders followed. But my memory on this is hazy enough.
- Does anybody have data on the increasing popularity of fixed rates (versus variable rates) over the last 15 years or so?
Whatever the lenders can achieve to stay profitable is the glib answer. Fundamentally the cost of retail deposits seems to be a big driver of mortgage rates. Irish banks haven't increased rates much yet as they are swimming in deposits and don't have to pay much interest to attract them.What is driving mortgage pricing in Ireland?
Thanks. I had a look but I couldn't find rates from before 2015.I only keep records since 2016 for BoI. Archive.org might help you get something going back longer.
What is driving mortgage pricing in Ireland?
Do you know if AIB are swimming in deposits to such an extent that their recent mortgage rate increases translate into pure extra profit? Or are they partially dependent on the markets to fund their lending?Whatever the lenders can achieve to stay profitable is the glib answer. Fundamentally the cost of retail deposits seems to be a big driver of mortgage rates. Irish banks haven't increased rates much yet as they are swimming in deposits and don't have to pay much interest to attract them.
Thanks Brendan. Is this a complete list of the rate changes or could there be some missing data points?Here is the AIB SVR
To give you an idea. AIBs balance sheet grew by about €17 billion between 2020 and 2021. €11 billion was from customers and a further €6 billion from other interbank deposits. That had to put the money somewhere. The corresponding increase in assets were in "cash and balances with central bank".Do you know if AIB are swimming in deposits to such an extent that their recent mortgage rate increases translate into pure extra profit? Or are they partially dependent on the markets to fund their lending?
I don't know a huge amount about liquidity and capital policy at large banks. I do know that banks generally keep a minimum share of long-term, market-based funding even if they are closing the doors on retail depositors due to excess funds.Or are they partially dependent on the markets to fund their lending?
Hi @unknowninsider The graph shows the 5-year swap rate. Are there other swap rates that you think are more important that I should add?Hi Paul, swap rates are the key variable missing from your chart. Swap rates are the reason we pay break fees, they are a critical component in the cost of funding a fixed-rate mortgage.
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