Investment mortgage rates-will further cuts be passed on?

[dinneenp]

Hi,
Was thinking of changing to AIB variable for investment property (currently just finished discount rate with First Active, now variable offer from them is 5.1%!or 2 year fixed of 4.5%). AIB variable rate is 4.7%- they didn't pass on the recent .75% cut.

However if rates are going to come down further will any of these (for investment mortgages) be passed on?
In general are cuts passed on for inv. mortgages as well or do they stop passing on when it gets to a certain 'low' rate.

Thanks,
Pa.

 

[c00lcarl]

Re: Inventment mortgage rates-will further cuts be passed on?

In general are cuts passed on for inv. mortgages as well or do they stop passing on when it gets to a certain 'low' rate.

Thanks,
Pa.

Apart from in the case of tracker mortgages, it is at the discretion of the banks whether or not they pass on rate cuts and to which mortgage products and how much of the rate cut is passed on. It seems a unfair system because you will generally find that very soon after the ECB rate goes up the full rise is added to a mortgage