how long does it take the ecb rate cut be passed on from ptsb

corinthion

Registered User
Messages
6
hi there. this may seem like a stupid question but maybe somebody can answer it .
when the ecb cut the rate at the start of the month how long does it take ptsb to pass this cut on. because i am on a tracker and the payment is due around the 20th of every month but i always pay the full amount on the 20th after a rate cut and then the cut is the following month a full 6-7 weeks after. is this right or should the cut be passed on from the day it is announced?
 

rameire

Frequent Poster
Messages
395
the rate is usually announced on the first thursday of the month and does not take effect in the ecb until the next wednesday.
the banks then have as much as the contracts say to amend the rates on the mortgages.
most will say they have 30 days.
this is 30 days from the actual rate change and not the announcement.
 

Gondola

Frequent Poster
Messages
130
Hello Corinthion - I have a tracker with PTSB, but I always pay on first of the month. I received a letter from PTSB during the week saying that next payment will be subject to latest ECB interest cut. I expect you have received it too.
 

STEINER

Frequent Poster
Messages
1,137
I was pleasantly surprised to get a rate change notification letter from PTSB on Thursday regarding my mortgage repayment of 2nd August. It seems my new rate is effective July 30th. With previous decreases they have tended to take much longer to pass them on and been very quick to pass on rate increases.
 

Galwaygirl

Frequent Poster
Messages
107
I got the same letter as Steiner but my mortgage amount didn't decrease and when I asked was told I won't see the decrease until my Sept payment! Does that mean the bank get extra interest from me for a month?
 

STEINER

Frequent Poster
Messages
1,137
I was pleasantly surprised to get a rate change notification letter from PTSB on Thursday regarding my mortgage repayment of 2nd August. It seems my new rate is effective July 30th. With previous decreases they have tended to take much longer to pass them on and been very quick to pass on rate increases.
well, my repayment was still the old amount after all. The .75% ECB rate will be reflected in the 2nd Sept. Old rate until 30th July and Aug 2nd repayment is for month up to 31st July. It is very good though that my monthly repayment is €400 less than a few years back.
 
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Galwaygirl

Frequent Poster
Messages
107
It comes out on 2nd of the month so same scenario as Steiner. The lad in the bank also confirmed that the TRS 30% is now in efffect as well (I had a letter with a reduction due to change in TRS but it never said waht the TRS rate was).
 

allie12

Frequent Poster
Messages
88
Anyone else have the % go down to correct (4.34%) online but the amount in monetary terms stay the same?
 

kaza

Frequent Poster
Messages
175
Yes for some reason they normally update the % first and then the amount stays the same for about another week! This always happens with my online account. I have received a letter from PTSB stating my new repayment amount from Sep at the 4.34% and my online account shows the 4.34% but it is still showing the old amount. I'd say it will update over the next week.
 

Joe Nonety

Frequent Poster
Messages
414
the rate is usually announced on the first thursday of the month and does not take effect in the ecb until the next wednesday.
the banks then have as much as the contracts say to amend the rates on the mortgages.
most will say they have 30 days.
this is 30 days from the actual rate change and not the announcement.
I never knew that it take another week to go through after the announcement. That means you should have your direct debit on the 15th of the month to guarantee that you only have to wait to the following month for it to be passed on e.g. August in this case rather than Sept. which is the case for most of us.
Mine comes out the 10th so it's more than 30 days for the ECB announcement, but not for when it takes effect, so it always feels like an extra long wait.
Of course when it's a rate increase, the increase goes through immediately well before the 30 days.
 
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