New Permanent TSB fixed rates

Shawady said:
PTSB are obviously factoring in where they see their variable rate going to in the next few years.
The ECB rate has dropped 3.25% since a couple of years ago so if it was to get back up to that level, even variable rates would be around the 8% mark.
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I agree. The lack of understanding by home owners of why interest rates are increasing astounds me. Talk of people power and unfairness etc. The Irish government are paying the EU/IMF 5.8%. This is a floor on wholesale borrowing in this country. The banks will be borrowing at higher than this and need to apply a higher margin to cover tracker rate loses. All in all 8%+ is reflective of where variable rates are heading over the next 2-3 years.

The banks have a choice, higher interest rates or more taxpayer money. I for one am totally against even more taxpayer money (than they're already going to get) going into the banks. Charge the customers.

If people are having trouble covering the increases to date then I'm afraid they're likely to be in real trouble come next year. And I don't think there'll be any money in the government coffers to help at all.
 

I don't think it is a lack of understanding from the people. People understand the reasons why the ECB rate is so low at the minute (because of the financial crisis throughout europe) and why PTSB are putting up their rates (because of the wreckless lending of other banks to developers, corruption within the banks and the government\developers). The banks need to borrow at higher rates for this latter reason, all to do with their own corrupt decisions, and nothing to do with the ordinary joe of the country.

robd said:
If people are having trouble covering the increases to date then I'm afraid they're likely to be in real trouble come next year. And I don't think there'll be any money in the government coffers to help at all.
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Yes they will be in trouble, people have lost their jobs, small businesses can't lend (bank & government fault again).

There seems to be a perception out there, well if its not effecting me, then no way do I want to see more tax payers money going towards those over borrowed home owners.
 
Pope John 11 said:
There seems to be a perception out there, well if its not effecting me, then no way do I want to see more tax payers money going towards those over borrowed home owners.
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Yep. That's certainly what I think anyway. It's about personal responsibility. It's a free market so those that made bad decisions and over extended will lose while those who made good decisions and saved will benefit.
 
robd said:
Yep. That's certainly what I think anyway. It's about personal responsibility. It's a free market so those that made bad decisions and over extended will lose while those who made good decisions and saved will benefit.
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1+
tough but fair.
it's called capitalism and is still the best system we have.
 
I'm due to get this 'once in a lifetime' offer from PTSB in the next week or so, as my 5 year fixed is coming t an end. I have LTV of about 50-60% (depends on the valuation), so are any of the other banks / building societies open to movers, or is that another casualty of the recession?
 
The term jingle mail will take on new meaning with these rate hikes.

GE Money, a sub prime lender is not charging anywhere near what PTSB is charging.
 
robd said:
Yep. That's certainly what I think anyway. It's about personal responsibility. It's a free market so those that made bad decisions and over extended will lose while those who made good decisions and saved will benefit.
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What about those who made personal responsible good decisions and find themselves now unemployed, or who find their other half is unemployed and now cannot afford to make their repayments?
 

maybe try one of the non-Irish banks, as they are not quite as short of money as the Irish ones. esp with your low LTV.
 
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