what is the current ECB rate?

D

DoeZer

Guest
Hello everyone..

i try to find out the current ECB rate on google and i keep getting 4 rates! which one is the one applicable to mortgages... is it the marginal lending facility rate?? ie 4.25%...

on a similar note - what is a competitive variable rate to be offered at the moment..??

thanks in advance
domhnall
 
DoeZer said:
on a similar note - what is a competitive variable rate to be offered at the moment..??
Click to expand...

Currently being offered 5.0% standard variable from AIB with LTV approx 80%
I'm told this is the best on the market currently
 
JMR said:
Currently being offered 5.0% standard variable from AIB with LTV approx 80%
I'm told this is the best on the market currently
Click to expand...


It should be going down tomorrow (.5% if the talk is correct), so wait until tomorrow before doing anything...
 
JMR said:
Currently being offered 5.0% standard variable from AIB with LTV approx 80%
I'm told this is the best on the market currently
Click to expand...


You say 80% LTV... im not sure if LTV has much meaning these days and for the next while surely...
realisable value for a lot of houses at this very minute is zero!!
 
DoeZer said:
You say 80% LTV... im not sure if LTV has much meaning these days and for the next while surely...
realisable value for a lot of houses at this very minute is zero!!
Click to expand...

When I say LTV, I mean the ratio of what I agreed to pay versus the size of mortgage I need.
I appreciate the 'value' of any property these days is subjective but for the purposes of LTV calculation do lenders not use the amount their customer agreed to fork out?
 
JMR said:
When I say LTV, I mean the ratio of what I agreed to pay versus the size of mortgage I need.
I appreciate the 'value' of any property these days is subjective but for the purposes of LTV calculation do lenders not use the amount their customer agreed to fork out?
Click to expand...

For a purchase, the LTV will be the mortgage amount expressed as a percentage of the purchase price.

For a remortgage/switcher, the LTV will be the mortgage as a percentage of the current market value (as assessed by an independent valuer)
 
jhegarty said:
It should be going down tomorrow (.5% if the talk is correct), so wait until tomorrow before doing anything...
Click to expand...

Can it be taken for granted that AIB will reduce their standard variable rate by .5% if the ECB rate is also reduced by this amount?

Currently 5.0% is what's on offer
 
JMR said:
Can it be taken for granted that AIB will reduce their standard variable rate by .5% if the ECB rate is also reduced by this amount?
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Personally I would never take the decisions of a bank for granted. They are in it to make money from their customers.
The last rate increase was passed on due to the bail out. I don't think they will be as quick to pass on the next. AIB are already one of the most competitive variable rates, if the rest of the banks did not pass on the full cut last time, I cannot see AIB passing on the full cut this time.
 
Halifax are doing 4.9% variable for LTV upto 90%.
If ECB rates go down again tomorrow - I don't think many banks will pass it in full this time.
 
Just so folks here will know, I have compiled a list of rate changes by the ECB since December 2005, when they started to rise from the historic low of 2.00%.

This info is from the ecb web-site:

1st Dec 2005

The minimum bid rate on the main refinancing operations of the Eurosystem will be increased by 0.25 percentage point to 2.25%, starting from the operation to be settled on 6 December 2005.


2 March 2006

The minimum bid rate on the main refinancing operations of the Eurosystem will be increased by 25 basis points to 2.50%, starting from the operation to be settled on 8 March 2006.

8 June 2006

The minimum bid rate on the main refinancing operations of the Eurosystem will be increased by 25 basis points to 2.75%, starting from the operation to be settled on 15 June 2006.

3 August 2006

The minimum bid rate on the main refinancing operations of the Eurosystem will be increased by 25 basis points to 3.0%, starting from the operation to be settled on 9 August 2006.

5 October 2006

The minimum bid rate on the main refinancing operations of the Eurosystem will be increased by 25 basis points to 3.25%, starting from the operation to be settled on 11 October 2006.

7 December 2006

The minimum bid rate on the main refinancing operations of the Eurosystem will be increased by 25 basis points to 3.50%, starting from the operation to be settled on 13 December 2006.

8 March 2007

The minimum bid rate on the main refinancing operations of the Eurosystem will be increased by 25 basis points to 3.75%, starting from the operation to be settled on 14 March 2007.

6 June 2007

The minimum bid rate on the main refinancing operations of the Eurosystem will be increased by 25 basis points to 4.00%, starting from the operation to be settled on 13 June 2007.


3 July 2008

The minimum bid rate on the main refinancing operations of the Eurosystem will be increased by 25 basis points to 4.25%, starting from the operation to be settled on 9 July 2008.


8 October 2008

The minimum bid rate on the main refinancing operations of the Eurosystem will be reduced by 50 basis points to 3.75 %, with effect from the main refinancing operation to be settled on 15 October 2008.
Click to expand...

Hopefully, this will help people check their own tracker rates from this info, and check when their mortgage company passed on the rate changes.
 
Interesting to see if anyone on a variable rate since 05 can tell us how much of an increase/reduction was passed on after each decision.
 
my mortgage (tracker) comes out on the 25th of each of the month and each of those nine increases was passed on immediately. Yet they said they hadn't got time to pass on October's decrease in time for the 25th.
 
JMR said:
Can it be taken for granted that AIB will reduce their standard variable rate by .5% if the ECB rate is also reduced by this amount?

Currently 5.0% is what's on offer
Click to expand...


I'd be surprised if they passed on the whole lot , but even .3% saves you quite a bit...
 
dubmick said:
my mortgage (tracker) comes out on the 25th of each of the month and each of those nine increases was passed on immediately. Yet they said they hadn't got time to pass on October's decrease in time for the 25th.
Click to expand...

my tracker comes out the 3rd of the month and it hasn't gone down for this month - am very p$$sed off - the increases were factored in nice and quick, i was given assurances on the phone that the decrease would take effect from 1 November ... and i check it yesterday and no change

..i'll update on the b&llsh&&t answer i'm given on a call tomorrow...

aggrieved ....
 
this new cut is due to come into effect on the 12th of November so I see no reason why AIB shouldn't pass this on before my next payment (25th) especially as in recent years they passed on the rate that came into effect later in the month.
 
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