"New hope for borrowers in variable rate nightmare"

Well, the head of FG was saying in the Dail yesterday that the Banks are going to be hauled in because there's too much talk of repossessions of the tens of thousands of mortgages in arrears....so if you join the dots, you'll see 1 of the main reasons why SVR's are so high!

And yes, we do need to see movement from the Banks. They can start with the mortgages 4+ years in arrears and work there way back to those gone 6 months over!
 
With regard to the Minister's response to poster KMC. The Ministers answers with due respect to his statutory duties smacks of no regulation. The Central Bank controls the Banks, the Minister controls the Central Bank unless we are facing into another P. Neary scenario where eyes were off the ball and Aherne voodoo economics were all the rage.

Regulatory control is essential I would have though post the Celtic Tiger and the broader scope of economics would normally address its market i.e. in this case the drowning mortgage holder. Business is not a one way street for the banks, the Irish public have bailed them out. Now its time for equalized levels or their will be no sustainable market for home ownership into the future.

The other very interesting observation is that in no way should home ownership be the subject of mortgage profiteering by the lenders but that's another story.

Do we want a society were the banks aided by the Minister actually financially rape the citizens or do we want a society constructed whereby the financial institutions serve the community for society's overall benefit?

Where have all the University Professors gone that were evident in the crash who might contribute to a reconstruction of society based on a more balanced outcome for all?
 
Last edited:
Hi All, am new to this thread, am paying SVR of 5.8% with P Tsb so it would be great if something came of this, scandalous the way people are being screwed with such high interest rates you would wonder what will the SVR be if the ECB starts to go up if it's 5.8% when the ECB I/r is so low.
 
I have just e-mailed all my local TD's, Shane Ross, Michael Noonan, Micheal Martin & Gerry Adams!
 
I e-mailed a load of people about the high SVR for existing customers 2 weeks ago. To date I have received three responses from TD’s (including a phone call that day from one TD)!

Brian Hayes MEP was excellent at feedback and seems to be doing real work in trying to get this highlighted. I really feel the more people that lobby their local politicians the better.

With the Bank of Irelands’ recent announcement of profits, surely their argument that the exorbitant Standard Variable Rates are required in order to subsidise their losses does not stand anymore?
 

PTSB offered to take on my BOI mortgage at a variable rate of 3.7% - are they really charging you 5.8%? Do you have the option to move - BOI, KBC and AIB are all touting for switcher business, the first 2 will pay some/all of your legal fees.
 
Is there no protection for svr mortgage customers, I've checked my contract/loan offer and they can change the rate to whatever they please is that not a heavily weighted contract on the side of the bank. If they have an obligation for fairness to their customers? Would it be worth going to the ombudsman. When we got our mortgage the broker said that the rate would be within reason but what's within reason? I know realize I my 23 year old self should have asked more questions but we were in such a panic to buy before we were priced out of the market ahh hindsight is a great thing.
 
If the Millars action fails in the Appeals Court ( hopefully not ), surely the Millars will appeal the decision to the European Court of Justice. The term at the centre of the Millar's appeal is Danske Bank's variable rate mortgage clause in the loan agreement, which states; that variable rates may vary at any time " in response to market conditions " . This clause adds a " qualifying factor " for Danske Bank to increase or decrease interest rates, which the Millars contend the bank are in breach of. If the Appeals Court decides against the Millars and the case is taken to Europe, the Millars will probably win on this point alone but also on the point that they would never have signed a Loan agreement with Danske Bank that contained an unqualified variable rate mortgage clause, which would allow the Bank to vary their mortgage rate at any time, in response to the Bank's own specialist factors to which the Millars are not privy to and which they have to accept as de facto. This would be classed as an unfair term under European Directive 93/13/EEC and would not be binding on the Millars.
 
Havn't seen any update on this.

We wrote to Danske last month with the same mortgage query on the 'market conditions' clause as the Millars. Danske replied that they they were satisfied they were fully compliant with this clause in our mortgage agreement, as the loan is not a tracker and rate adjustments are not linked to the movement of the ECB rate. We are looking at writing to FSOB next, although guess they will just await the outcome of the Millar's case like the rest of us.
 
reddanmm said:
I am just listening to Karl Deeter about the SVR why is he so pro banks .
Click to expand...
He's pointing out a simple fact...if the Banks get hit with a new levy, they'll just pass it on via charges. A new indirect tax so to speak.
His point seems to be that lower rates are coming very soon due to market conditions and there's no need for Politicians to interfere with the banks, not that they really have the power to do so in any case
 
I think the lowering of interest rates is coming very soon as Delboy, the pro banker points out. This is not due to market forces as alluded to, but because some Joe Soap has sent a letter of complaint to the European Commission competitions and anti trust unit about the Irish State monopolisation of the market ( The State currently own 62% of the banking market ) so they can be considered market dominant.The State has used its dominant position to stagnate competition (ie Central Bank of Ireland sending erroneous data to ECB about variable rates charged by banks in this Country etc so that competition will not arrive ) so that it can quickly rebuild the balance sheets of the broken banks it was forced to acquire. This however was on the backs of the unfortunate variable rate customers who were hung out to dry by the State. This action (or inaction) by the State will probably receive sanctions by the Commisssion. I can see the State having to defend a lot a lawsuits down the High Court, but I will not bother the readers with any more detail.
 
Delboy ,

The reason SVR rates are way out of fairness to customers , is solely because thus far, Banks feel they legally scrap home in so doing.
It may well be that because Repos are so difficult the Banks use SVRs to compensate.
There is a glaring inequity here.

ADVICE.
You mention (competition) or lack thereof.
Was it not much too much competition that got us into the mess of Bankers , chasing volume rather than profit margin in the fluffy times?
 
Gerry,

yes, too much chasing of market share by the banks coupled with no bank regulation got us into the mess we are in, however i believe the central bank is starting to do what it is supposed to do.
 
You must log in or register to reply here.
Menu
Log in
Register