PTSB - State Controlled - Good or Bad news for mortgage holders?

Just read this http://www.rte.ie/news/2011/0329/ilp-business.html

On a variable with PTSB 5.55 (just missed the deadline to fix for 5 years by a day on 2nd Feb when they pulled fixed rates)

Any opinions on whether this is good or bad news for my mortgage rate going forward? Will they be forced to have similar rates to other state owned banks ? or have their hands tied when it comes to raising rates in future? or is it a sign that they are so much trouble that the only way is UP for rates in future for them to try to claw in every penny they can get?

Surely will lead to defaults - and even more trouble.

so you would have the state chasing mortgage holders for money, the state removing mortgage interet relief to put even more people in trouble and the state forcing moratoriums on re-possessions to help people.

All seems a bit mental - this going on in the banking world...

Well PTSB have been putting up their Standard Variable Rates and there is very little that customers could do about it.

It's possible that if they are state controlled, that TDs would call on the government to force rate reductions.

I don't think it's bad news for borrowers.

Brendan

Brendan Burgess said:

It's possible that if they are state controlled, that TDs would call on the government to force rate reductions.

I don't think it's bad news for borrowers.

Brendan

Click to expand...

So the rates not being increased will increase the losses being made by PTSB, and thence require more capital. ergo it is bad news for all tax-payers - not just borrowers.