Some banks have not adjusted rates yet after ECB rise. Why?

P

Petal

Registered User
Messages
881
Folks,

Just wondering. I thought that once the ECB increase had come into effect that all the tracker rates would automatically go up by 0.25%. However, it appears that some have not done that (yet). Whereas for example the ICS tracker has gone up to 3.6%, the PTSB still remains at 3.35% and when I rang all I was told is that no notice had reached them yet from head-office and the quoted rate was valid. Isn't that a bit odd? Or can the banks just decide whenever they want to adjust the rates. Of course they could decide to just decrease the ECB+ rate, but that seems extremely unlikely...
Any thoughts or observations on this?
 
With tracker rate it depends on the term and conditions. Some will apply the increase with immediate effect but not increase the repayment until the next payment or even the one after that depending on the timing.

Others apply the increase wef the first of the following month.
 
When the ECB increased to 2.25% on 6th Dec AIB didn't adjust their tracker rate until 13th Dec.
The increase to 2.5% happened on 8th March so I'm expecting them to adjust the rate
on Wednesday 15th March.
 
Of course, when the ECB rate goes down again (it will eventually) hopefully the rates will come down as quickly/slowly as they went up!
 
jpd said:
Of course, when the ECB rate goes down again (it will eventually) hopefully the rates will come down as quickly/slowly as they went up!
Click to expand...

That's something AAM or even better the financial regulator should keep track of (if they're not already?)
Not for enforcement just for consumer information purposes.
 
jpd said:
Of course, when the ECB rate goes down again (it will eventually) hopefully the rates will come down as quickly/slowly as they went up!
Click to expand...
As mentioned above the Ts&Cs of each tracker mortgage agreement will state the period of time within which ECB rate changes will be reflected in the tracker rate. I imagine that the same period applies to both rate increases and decreases. However the period may differ from one mortgage/lender to another. If somebody wants to volunteer to collate these details for all tracker mortgages on the market and post the summary details here (or in the Financial Best Buys forum) then that would be great.
 
Hi, AIB raised all rates, lending and deposit. by 0.25pc in a statement today. Announcement in business pages tomorrow. I expect different products have different applicable dates for new rates
K
 
Taking effect from COB Tuesday 14th.

I see they're also raising their on-line savings rate to 3.5% which takes
them above NR's 3.45% from March 31st.
 
But aren't there various terms & conditions that need to be met in order to qualify for the best rate on offer from AIB? See here.
 
Thanks guys for all the info. I just found it a bit unhelpful when I rang up PTSB to ask about this and they couldn't even tell me what it is going to be. I've got approval from a number of banks, but with the increase of interest rates all the offers I received will have changed by the time I finally found a house and draw down a mortgage. I think there should be more transparancy for the consumer in general, a great effort has to be made to collect all this information. But I guess, this is where the brokers come in handy...
 
When shopping around ask lenders for a copy of the terms & conditions governing the loan for which they are giving you provisional approval and that should make everything clear.
 
You must log in or register to reply here.
Back
Top