Will all rate cuts be passed to tracker mortgage holders?

I asked at my Halifax branch on Tuesday as we hadn't received any notifications of the drop in rate and was told they had 30 days to pass on the rate and it would become active from the 1st of November.
 
Just off the phone with Ulster Bank and they are introducing their tracker rate cuts from tonight as well ... and the letters of notification will of course follow within a couple of days - nearly lost my reason at the tone of the bloody customer service guy - what do these guys get off on .... oh yes, and was there anything else he could help me with - could he f**K
 
They can wait the full 30 days before lowering - and continue to charge us at the higher rate.

However - when it increases they up it as soon as they can.... so they benefit. That sounds about right.



 
Luckycharm said:
I am really annoyed with my bank Ulster bank - all 8 increases have been put on within a week, yet they will not put the decrease until Nov so my payment on the 31st will not have the decrease!!
Click to expand...

You cannot be serious :mad:

In another post here I outlined what I was told today by their Customer Services ppl.

However, it would not surprise me if they do try to pull a stunt like this, and delay passing on the rate cut, in stark contrast to UB's immediate imposition of all past rate increases.

I will make a complaint to UB in the first instance, and will follow this up with a complaint to the [broken link removed].

They may indeed be correct in the letter of the law, but there is a case to be made for consistant application of the terms of the contract.

I will be looking for all those previous increases to be applied in the same fashion.
 
Luckycharm said:
I am really annoyed with my bank Ulster bank - all 8 increases have been put on within a week, yet they will not put the decrease until Nov so my payment on the 31st will not have the decrease!!
Click to expand...
Just hecked online and my payment for the 3rd pf november has already been withdrawn by UB and it's exactly the same as the last 4 months....no reduction! What gives? I'm on a tracker since switching to them about 4 years ago.
 
murphaph said:
Just hecked online and my payment for the 3rd pf november has already been withdrawn by UB and it's exactly the same as the last 4 months....no reduction! What gives? I'm on a tracker since switching to them about 4 years ago.
Click to expand...

Please see my previous post regarding this.

I took the trouble of contacting their "Customer Service" at 1890 252 304 to find out what the story was.

They were "economical with the truth" to me regarding notification of the rate change, saying I should have got a letter already, and they would send out an apology. They also indicated that the Oct. ECB rate change would be passed on in my next payment.

But, just like you, I checked, and they have taken the same amount as last month, with no reduction.

I feel this is totally unacceptable, given the way in which rate increases were historically passed on at the first opportunity.

Also, this Bank is being bailed out by the Irish Taxpayer to an enormous extent, by having all deposits and the majority of their loans insured, for a pittance.

I would urge all those affected to register an official complaint with the Bank, and to escalate this as far as possible there, and further to register a complaint with the Ombudsman (FSOB) if UB do not relent.

The freepost address for complaints to UB is:


Customer Relations Manager
Ulster Bank
FREEPOST
Retail Markets
PO Box 145
Dublin 2

Do not accept this lying down!!
 
We have a UB tracker mortgage aswell
I was livid when I checked my bank account this morning to see they have taken the same amount from my mortgage as last month.
I will be ringing them first thing Monday morning and I agree anyone affected by this should make a complaint .
The banks have some cheek by not passing on the rate decrease straight away. I was getting suspicious when we didnt get a letter in the post during October to tell us about the decrease.. However , they are very quick to send us a letter when there is an increase in interest rates.
This country is becoming a joke to live in at the moment! Sick of it.
 
Don't waste your breath holding on the phone-send a letter in to address above. They have to respond in writing to a written complaint. Letter typed and ready to send.

It's not big money in my case but that's not the point.
 
murphaph said:
Don't waste your breath holding on the phone-send a letter in to address above. They have to respond in writing to a written complaint. Letter typed and ready to send.

It's not big money in my case but that's not the point.
Click to expand...

I think there is no harm at all in calling their "customer service" number, and following on with a letter, quoting the time, date and person to whom you spoke.

The FSOB likes to see that you have utilised all avenues before escalating to them.

I agree, the amount of money is immaterial, it is the principle.

I had to do a similar exercise with AIB, in relation to getting a refund from them for their overchrging for my credit card annual fee, after switching from them.

These Banks need to feel a little consumer anger.
 
Yes I would agree with last poster. Make sure you get all details of who you were speaking with etc prior to writing to the bank. Don't ask for the Final Response Letter initially when you complain, then when they send you some 'standardised' response, request this. You will need it before you complain to the Ombudsman. Make them work for their money!

I can guarantee you that the Ombudsman will actually agree with their approach- so it will all have been a pointless exercise- when writing to the bank make sure you use FREEPOST on envelope! Also you can email customerrelations@ulsterbank.com I hope I have that right, but check with them in advance!
 
Just to play devil's advocate for a moment. Am I correct in thinking that if the rate was only passed on yesterday then the interest calculated would be the old rate and thus your monthly repayment (I'm assuming it's not paid in advance) would be the same?

I absolutely agree that banks are quick to pass on rate increases and slow to pass on decreases. A consistent approach should be used.
 
Well my tracker mortgage payment to Halifax has just gone out and the new rate has not been applied as the same amount went out as last month.
 
smree said:
Well my tracker mortgage payment to Halifax has just gone out and the new rate has not been applied as the same amount went out as last month.
Click to expand...

Halifax will pass on the cut from 1st November... so u will see a change in your december's installment
 

Maybe we should register our complaint with the Ombudsman itself !
Like why are the banks allowed up to 30 days to do this? lets see - whats involved ? calculate the new mortgage rate , set the date it applies from, draft a standard letter and send it to Tracker Mortage customers at the address on file ! Come On , this is 2008 - they should be given 5 working days, tops !
 
St. Bernard said:
I dont see why rate cuts can't be passed on. Sure didn't the banks give people mortgages 2 - 3 years ago on the lower ECB rates. All thats happening now is that these retes are returning to the level of 2005 / 2006
Click to expand...

They did indeed give mortgages at a time when ECB and Euribor rates where lower... we are in Completely Different times now... the Banks Use the 3 MOnth Euribor rate to fund there mortgages (more or less) ... there is a large difference of more than 1.5% in these rates... while its hard to feel any sympathy for the Banks... this means that they are losing up to 0.5% of every single Tracker loan they have. Also making far less on their SVR (Variable ) rates ...
why else would they be lending money oot at 5.25% and Paying between 5.5%- 6.00% for Deposits... its down to the cost of the Funding...
If we want a stable Banking system going forward... we cant expect this to continue... its only a matter of Time before the Banks (most or all of them) will Balk at Govt insistence onthem passing on rate cuts.. as it means them carrying losses on Mortgages indefinately.... How many savers would demand that the 5.5%- 6% rates on offer now come down to the ECB 3.25% rate?? there in lies the difficulty...
btw having held a mortgage with UB and EBS NIB over the years... since 1994.. there was never a guarantee of rate being cut by the Bank to the same degree as a Central Bank Rate cut.. it was always at the discretion of the Bank or BS... as it happens I found EBS to be the best at doing this consistently... Also worth noting that Prior to Bank of Scotalnd entering the market.. the margin paid over the ECB or Irish Central Bank rate was usually 2 or 3 % .. not the 1-1.5% currently charged.
 
You must log in or register to reply here.
Menu
Log in
Register