I've heard it all now. From Joe Duffy - "Everyone default on their mortgages for a month" - completely unchallenged by the presenter.This is getting ridiculous. I have not heard one logical reason as to why what Permanent TSB did was so wrong.
Dont know a whole lot about mortgages, but something got me thinking cause i contacted my bank the other week. I heard someone mention here on another thread that in 2006/2007 a lot of mortgages after the initial fixed period automatically went onto a tracker.
Chanced my arm and phoned the bank last week to see if i was one of these that should of gone onto a tracker.....no such luck. And i enquired was the rate was for fixing, which is now .75% higher than what it was 6 months ago.
But in my contract it say that i went to a variable that was 1.99% above the base rate, for the life of my mortgage, unless i took out another fixed rate or any other product they were offering.
So if PTSB and other banks follow suit by adding .5% isn't this breaking the original contract since the base rate has not risen?
Or in very small print and written so that i'd never understand it anyway even if i did see it, does it say they can change this whenever they want?
Does anyone know what is the rate banks are paying for loans from other banks?
Challenged by who? On what basis?
Challenged by who? On what basis?
I could be wrong but I thought the inter-bank lending rate was what mattered. That's running well ahead of the ECB rate. As the euro-zone comes out of recession the inter-bank rate should drop.When this Recession ends in the rest of Europe as anticipated well ahead of Ireland we may then face into successive months of increase after increase at the ECB and we will have no say in it.
As far as I am aware this 0.5% increase is only appliciable to variable rate mortgages but not tracker mortgages, but I am open to correction on that.
How could they apply it to tracker mortgages. Surely the whole point of these is that they are tracking the ECB rates?
On what basis? Its quite simple, they are NOT losing money on the Variable Mortgages but are penalising that Customer base by this increase in order to make up losses elsewhere. They can obtain a lower rate of borrowing because of OUR guarantee for their Bank, they can't do that on their own due to bad practice in the recent past. When this Recession ends in the rest of Europe as anticipated well ahead of Ireland we may then face into successive months of increase after increase at the ECB and we will have no say in it.
I don't have a Variable Mortgage with them but can both empathise with people who do and are being hit with this and realise that it could get the rest of them jumping on the band wagon, I guess thats when many of you may feel its not such a fabulous idea.
Does this affect tracker as well as variable mortgages?
Well they had €8.2 billiion of spare cash to transfer to Anglo Irish Bank to beef up Anglo's accounts. Seems to me that they have plenty of cash.
It's the tax payer and not the customer who has propped up the banks. You, as a tax payer without a variable mortgage, are a perfect example of why the banks should be left alone to make profits to pay back tax payers rather than distribute taxes to mortgage holders who are clearly not the same set of peopleOn what basis? Its quite simple, they are NOT losing money on the Variable Mortgages but are penalising that Customer base by this increase in order to make up losses elsewhere. They can obtain a lower rate of borrowing because of OUR guarantee for their Bank, they can't do that on their own due to bad practice in the recent past. When this Recession ends in the rest of Europe as anticipated well ahead of Ireland we may then face into successive months of increase after increase at the ECB and we will have no say in it.
I don't have a Variable Mortgage with them but can both empathise with people who do and are being hit with this and realise that it could get the rest of them jumping on the band wagon, I guess thats when many of you may feel its not such a fabulous idea.
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