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Banks passing on ECB rate cuts..or not

  • 17-10-2008 6:32pm
    #1
    Registered Users, Registered Users 2 Posts: 541 ✭✭✭


    I have a tracker mortgage with aib since november 06 and was relieved to hear of the recent ecb rate change.

    The rate changed on oct 8 and was expecting to benefit on my next payment which was the 17th gone,but no! I have since contacted my bank and was told it will change on the 21st!

    Since i took out the mortgage there has been many a rate change all in the up direction, all of which was passed onto me within 5 working days as stated in my mortgage contract.

    Am i missing something here or is aib trying to screw me over on this months payment????? GRRRRRRRRRRRRRRR


«13

Comments

  • Registered Users, Registered Users 2 Posts: 1,246 ✭✭✭sofireland


    Check the fine print of your loan offer, in some cases they can delay for up to 30 days.


  • Registered Users, Registered Users 2 Posts: 6,441 ✭✭✭jhegarty


    the rate changed happened on the 15th (it was only announced on the 8th)...


  • Registered Users, Registered Users 2 Posts: 5,660 ✭✭✭veryangryman


    Hi

    I see ECB dropped rate some weeks back. So i check with glee for the direct debit to be lower

    The bankers/**** (AIB) have kept it at the old rate for this month. In fact they charged me extra this month because i have been comiong to the end of my "discounted rate" for the first year

    PS - I apologise for the doom and gloom post in advance. Lord knows weve seen too many of these of late


  • Registered Users, Registered Users 2 Posts: 1,080 ✭✭✭kenco


    Trackers should change immediately or shortly there after. However check what deal you were on. You may have been on a 12 month one as your post suggests and if this is the case they may not be offering you another tracker rate and might be moving you to standard variable (which they dont have to change).

    Call them and have a chat as normally the customer complaints folks will be helpful and will bend over backwards to keep you business.


  • Registered Users, Registered Users 2 Posts: 3,636 ✭✭✭dotsman


    AIB is passing on the rate cut from tomorrow. It's down to having to get all their systems updated, regulatory procedures followed, documentation, advertisements, paperwork all updated to reflect the new rates. Throw in all the SOX BS around this and it's surprise that they manage to change the rate at all!

    It's the same for every bank, and it's the exact same time frame regardless of whether the rate is going up or down (so stop your whining:p)


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  • Closed Accounts Posts: 388 ✭✭redroar1942


    dotsman wrote: »
    AIB is passing on the rate cut from tomorrow. It's down to having to get all their systems updated, regulatory procedures followed, documentation, advertisements, paperwork all updated to reflect the new rates. Throw in all the SOX BS around this and it's surprise that they manage to change the rate at all!

    It's the same for every bank, and it's the exact same time frame regardless of whether the rate is going up or down (so stop your whining:p)

    Is'nt it funny how much more efficient they are when there is a rate increase, I'm sure its just a coincidence though.


  • Registered Users, Registered Users 2 Posts: 3,636 ✭✭✭dotsman


    Is'nt it funny how much more efficient they are when there is a rate increase, I'm sure its just a coincidence though.

    ...
    dotsman wrote: »
    It's the same for every bank, and it's the exact same time frame regardless of whether the rate is going up or down (so stop your whining:p)


  • Registered Users, Registered Users 2 Posts: 12,687 ✭✭✭✭TheDriver


    interest is calculated daily anyways so doesn't matter when you make your repayment


  • Registered Users, Registered Users 2 Posts: 3,423 ✭✭✭Avns1s


    Does anyone know for definite if this rate cut has been passed on by AIB?

    I contacted AIB yesterday to enquire. When I told the official that I was ECB + 0.6%, I was told that they thought AIB weren't going to pass on the cut to trackers with such a low margin. :mad:

    When I threatened to move the mortgage, I was told I wouldn't get a comparable rate anywhere else. Anyway, I was told to wait until last night to see if the rate was being passed on to me. So far nothing is coming up on the Internet Banking so it looks like it's not coming my way!

    I will change from AIB even if it costs money on a point of principle, if this rate cut is not passed on.


  • Registered Users, Registered Users 2 Posts: 3,636 ✭✭✭dotsman


    Avns1s wrote: »
    Does anyone know for definite if this rate cut has been passed on by AIB?

    I contacted AIB yesterday to enquire. When I told the official that I was ECB + 0.6%, I was told that they thought AIB weren't going to pass on the cut to trackers with such a low margin. :mad:

    When I threatened to move the mortgage, I was told I wouldn't get a comparable rate anywhere else. Anyway, I was told to wait until last night to see if the rate was being passed on to me. So far nothing is coming up on the Internet Banking so it looks like it's not coming my way!

    I will change from AIB even if it costs money on a point of principle, if this rate cut is not passed on.

    You spoke to a tool! The rate was passed on to everybody. Not only to all trackers (which is what a tracker is), but also to those on standard variables.


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  • Registered Users, Registered Users 2 Posts: 3,423 ✭✭✭Avns1s


    dotsman wrote: »
    You spoke to a tool! The rate was passed on to everybody. Not only to all trackers (which is what a tracker is), but also to those on standard variables.

    Well it was a "tooless" actually. ;) Anyway, if you're right and I'll know tomorrow, then it's happy days for a while. Thanks for the reply.


  • Registered Users, Registered Users 2 Posts: 3,636 ✭✭✭dotsman


    Avns1s wrote: »
    Well it was a "tooless" actually. ;) Anyway, if you're right and I'll know tomorrow, then it's happy days for a while. Thanks for the reply.

    In the freaky chance that it wasn't passed on, then do lodge an official complaint, because it would only be in error that you did not receive the rate cut. As I said, the whole concept of a tracker is that you are guaranteed the entire rate cut/hike no more, no less.


  • Registered Users, Registered Users 2 Posts: 3,636 ✭✭✭dotsman


    P.S. How do you find out via internet banking?

    I just have the actual mortgage account on my internet banking, and I can see the repayments and balance etc, but it doesn't quote the rate anywhere.


  • Registered Users, Registered Users 2 Posts: 3,423 ✭✭✭Avns1s


    Hi Dotsman,

    When I go into the internet banking site, the rate is listed as it would be on a normal bank statement with the date on the side everythime it changes and then something like every three months even if it doesn't change, so it's on pretty much each page of the schedule of transactions.


  • Registered Users, Registered Users 2 Posts: 3,423 ✭✭✭Avns1s


    PS you were right. The rate is changed on the internet banking effective as of the 22nd October. (Presumably midnight!)


  • Registered Users, Registered Users 2 Posts: 11,393 ✭✭✭✭Vegeta


    It is definitely being passed on.

    I have a letter of offer, posted yesterday, for a 5% variable rate whereas a few weeks ago (1 week) it was 5.5%


  • Registered Users, Registered Users 2 Posts: 3,929 ✭✭✭dubmick


    my mortgage came out today and it wasn't reduced! I am on one of the old tracker rates. Not happy.

    Just spoke to the bank, they said the rate only changed on the 21st so it was too late for October. Bull**** imo, the ECB rate changed on the 15th and should have been passed on within 5 days.


  • Registered Users, Registered Users 2 Posts: 37,485 ✭✭✭✭Khannie


    My mortgage came out today (30th) and no sign of the rate change from First Active, more than two weeks on. You bet your ass if it had been an upward revision it would have been passed on by now. Cranky. :/


  • Registered Users, Registered Users 2 Posts: 3,636 ✭✭✭dotsman


    Khannie wrote: »
    My mortgage came out today (30th) and no sign of the rate change from First Active, more than two weeks on. You bet your ass if it had been an upward revision it would have been passed on by now. Cranky. :/

    Are you sure you are on a tracker?

    Looking at the First Active website, I can see they have not passed on the cut to their Variable rate customers. As they no longer offer Trackers, there's no info on their website about them.


  • Registered Users, Registered Users 2 Posts: 412 ✭✭IrlJidel


    dotsman wrote: »
    Are you sure you are on a tracker?

    Looking at the First Active website, I can see they have not passed on the cut to their Variable rate customers. As they no longer offer Trackers, there's no info on their website about them.

    I'm on a FA tracker and mortgage came out today without the rate drop. :mad:


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  • Registered Users, Registered Users 2 Posts: 3,636 ✭✭✭dotsman


    IrlJidel wrote: »
    I'm on a FA tracker and mortgage came out today without the rate drop. :mad:

    What bank are you with? What do you mean by the "FA tracker"? How do you know that the cut hasn't been passed on? Does your statement specifically state what rate you are on?


  • Registered Users, Registered Users 2 Posts: 412 ✭✭IrlJidel


    dotsman wrote: »
    What bank are you with? What do you mean by the "FA tracker"?

    First Active ECB tracker.
    dotsman wrote: »
    How do you know that the cut hasn't been passed on? Does your statement specifically state what rate you are on?

    I know the rate was not effective yet as the amount I paid this month was the same as last month.


  • Registered Users, Registered Users 2 Posts: 3,636 ✭✭✭dotsman


    I'd lodge an official complaint with them. I'd also notify the Financial Regulator.

    Does your loan contract specify the maximum length of time it will take for a rate change to be passed on? If so, then you definitely have a case for complaint. If not, although maybe not 100%, you still have a strong reason to complain, because all the other banks pass on their changes within approx 2 weeks.


  • Registered Users, Registered Users 2 Posts: 3,929 ✭✭✭dubmick


    the AIB site said that they pass it on within 5 days. All information on trackers is removed from the AIB site now.


  • Closed Accounts Posts: 1 generalcuster


    My mortgage is taken out on the 1st of the month. I am on a tracker rate with ulster bank. My repayment this month did not reflect the cut which came into affect on Oct 15th. l think my repayment should not only have included the cut but only been backdated for the Oct payment (from 15th onwards) Has anyone with ulster bank received the cut

    Thanks:D


  • Registered Users, Registered Users 2 Posts: 24,924 ✭✭✭✭BuffyBot


    Welcome to boards.ie generalcuster.

    First..don't do ALL CAPS, it's considered shouting :)

    Second, I've merged this thread with another similar one on this topic. Always do a search before you start a thread - to see if it's already being discussed :)


  • Registered Users, Registered Users 2 Posts: 1,246 ✭✭✭sofireland


    I've a tracker with Halifax and they confirmed in the media that the october cut takes effect from 01/11, so therefore, you should see it in your November repayments!


  • Closed Accounts Posts: 5,538 ✭✭✭niceirishfella


    Yes, call them and insist that your get it ASAP.
    Then report them to the Financial reg.


  • Registered Users, Registered Users 2 Posts: 1,246 ✭✭✭sofireland


    Check the terms of your loan offer for your answer before you go to regulator.
    Some lenders will make it effective within 30 days of the change.
    Talk to your provider , they'd know the terms of your mortgage better than us!


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  • Registered Users, Registered Users 2 Posts: 2,906 ✭✭✭DeadSkin


    My mortgage is taken out on the 1st of the month. I am on a tracker rate with ulster bank. My repayment this month did not reflect the cut which came into affect on Oct 15th. l think my repayment should not only have included the cut but only been backdated for the Oct payment (from 15th onwards) Has anyone with ulster bank received the cut

    Thanks:D

    I'm in the same boat. Rate hasn't been passed on. Mortgage payment was taken out this morning.
    Going to get on the blower to them today.
    I know there was a rate cut last month, can anyone tell me when the one before that was from the ECB.


  • Closed Accounts Posts: 13,992 ✭✭✭✭gurramok


    DeadSkin wrote: »
    anyone tell me when the one before that was from the ECB.

    June 6th, 2003.

    http://www.ecb.int/stats/monetary/rates/html/index.en.html


  • Registered Users, Registered Users 2 Posts: 1,519 ✭✭✭Oral Slang


    I've a tracker mortgage with TSB, but still haven't heard anything about whether my rate will be cut? Due to come out of my account this week, will it just come down automatically do you think?


  • Registered Users, Registered Users 2 Posts: 719 ✭✭✭Bass Cadet


    If this happens today, will banks who have given out tracker mortgages HAVE to pass this on in full? :confused:


  • Registered Users, Registered Users 2 Posts: 68,317 ✭✭✭✭seamus


    Yep.


  • Registered Users, Registered Users 2 Posts: 719 ✭✭✭Bass Cadet


    seamus wrote: »
    Yep.

    Happy DAYS! well....at least for a while ;)


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  • Registered Users, Registered Users 2 Posts: 68,317 ✭✭✭✭seamus


    Actually I should qualify that. I think they have a clause or two which allows them to not pass it on under extraordinary circumstances, but they would be unlikely to invoke these clauses.


  • Registered Users, Registered Users 2 Posts: 719 ✭✭✭Bass Cadet


    seamus wrote: »
    Actually I should qualify that. I think they have a clause or two which allows them to not pass it on under extraordinary circumstances, but they would be unlikely to invoke these clauses.

    HBOS are bast4rds...wouldn't surprise me


  • Registered Users, Registered Users 2 Posts: 3,341 ✭✭✭jasonb


    Should the .5% drop a few weeks ago also have been passed on to those of us with a Tracker Mortgage? Cos my mortgage didn't change.

    And while I'm at it, I hate that the Halifax uses all these 'don't rely on the bankers' type ads, when they're the HBOS....

    J.


  • Registered Users, Registered Users 2 Posts: 719 ✭✭✭Bass Cadet


    jasonb wrote: »
    Should the .5% drop a few weeks ago also have been passed on to those of us with a Tracker Mortgage? Cos my mortgage didn't change.

    And while I'm at it, I hate that the Halifax uses all these 'don't rely on the bankers' type ads, when they're the HBOS....

    J.

    HBOS did from Nov 1st...conveniently for me as my last payment came out on October 28th :rolleyes: Meaning I paid them an extra €100 in that monthly repayment when I should have been saving it. Funny how increases happen immediately and cuts seem to take an age to kick in. Apparently they can defer implementing cuts for 30 days after the actually rate cut...don't know why but hey, they're banks, they seem to be able to do anything they want


  • Registered Users, Registered Users 2 Posts: 3,341 ✭✭✭jasonb


    Permanent TSB's website says they're going to pass on the .5% drop to all existing Variable and Tracker Mortgages from the first week in November.

    I've no idea why it's taking 3 weeks to pass it on, my mortgage went through this month without a reduction, but it should have the reduction next month.

    It'll be interesting to see if the interest rate drop expected today will also go through next month, or the month after. I need to check the small print of my mortgage to see how long they can take before applying an interest rate drop.

    J.


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  • Registered Users, Registered Users 2 Posts: 3,341 ✭✭✭jasonb


    Actually just found a note on PTSBs website to say the cut will go thorugh in the first week in November ( i.e., after my mortgage repayment of 3 days ago ).

    Gonna check the small print on my mortgage to see how long they're allowed wait for. I know it's not a lot of money, but I'd be curious to see if there is a difference between how long they wait to put it up compared to how long they wait to drop it...

    J.


  • Registered Users, Registered Users 2 Posts: 719 ✭✭✭Bass Cadet


    jasonb wrote: »
    Actually just found a note on PTSBs website to say the cut will go thorugh in the first week in November ( i.e., after my mortgage repayment of 3 days ago ).

    Gonna check the small print on my mortgage to see how long they're allowed wait for. I know it's not a lot of money, but I'd be curious to see if there is a difference between how long they wait to put it up compared to how long they wait to drop it...

    J.

    30 days for rate cuts. Whenever they want for increases...ie immediately :mad:


  • Closed Accounts Posts: 1,814 ✭✭✭dobsdave


    Rates just gone down another .5% :)

    http://www.rte.ie/business/2008/1106/ecb.html


  • Registered Users, Registered Users 2 Posts: 2,906 ✭✭✭DeadSkin


    dobsdave wrote: »
    Rates just gone down another .5% :)

    http://www.rte.ie/business/2008/1106/ecb.html

    Won't see it until Jan 1st, in my circumstances :(
    Will see last month's rate cut on 1st Dec.


  • Closed Accounts Posts: 1,814 ✭✭✭dobsdave


    DeadSkin wrote: »
    Won't see it until Jan 1st, in my circumstances :(
    Will see last month's rate cut on 1st Dec.

    Sorry to hear that, got my October reduction this month.
    Hopefully this months one will follow suit for next month.


  • Registered Users, Registered Users 2 Posts: 1,380 ✭✭✭chuckles30


    I was onto Ulster Bank this morning as I'm on a tracker rate and I didn't get my cut this month. Anyway they seemingly have 30 days to pass on the changes.....I did point out how convenient it was that they only discovered this when the rates came down.....the increases were passed on immediately. The Oct cut is effective Nov 1st.....so should be reflected in Dec payment.....again very convenient given that they take out the payments on the 1st. I guess I can look forward to today's cut in Jan :mad: Anyway their complaints dept is due to call me back within two days, but it could take longer as the lady told me there have been a lot of calls about this issue!!!


  • Registered Users, Registered Users 2 Posts: 3,816 ✭✭✭unclebill98


    chuckles30 wrote: »
    I was onto Ulster Bank this morning as I'm on a tracker rate and I didn't get my cut this month. Anyway they seemingly have 30 days to pass on the changes.....I did point out how convenient it was that they only discovered this when the rates came down.....the increases were passed on immediately. The Oct cut is effective Nov 1st.....so should be reflected in Dec payment.....again very convenient given that they take out the payments on the 1st. I guess I can look forward to today's cut in Jan :mad: Anyway their complaints dept is due to call me back within two days, but it could take longer as the lady told me there have been a lot of calls about this issue!!!

    They must call back in the time frame agreed with the customer. If they don't call you there breaking there own rules on handling there customer complaints. Don't let them away with it.


  • Registered Users, Registered Users 2 Posts: 3 jdb


    ECB rate went up on 9th July - PTSB Tracker Mortgage went up on 14th July
    ECB rate went down on 8th October - PTSB Tracker Mortgage goes down 7th November
    ECB rate went down on 6th November - PTSB Tracker Mortgage will go down in 5th December

    Go figure


  • Registered Users, Registered Users 2 Posts: 2,906 ✭✭✭DeadSkin


    jdb wrote: »
    ECB rate went up on 9th July - PTSB Tracker Mortgage went up on 14th July
    ECB rate went down on 8th October - PTSB Tracker Mortgage goes down 7th November
    ECB rate went down on 6th November - PTSB Tracker Mortgage will go down in 5th December

    Go figure

    The sad thing is banks are entitled to this. If you check your terms & conditions, they have 30 days to pass on any rate cut/increase.


  • Registered Users, Registered Users 2 Posts: 5,146 ✭✭✭Morrisseeee


    Was talking to AIB rep yesterday:
    ECB rate cut announced on Oct 8th
    Effective as of the Oct 16th
    Then something about 6 days to pass it on to customer.....
    Then another 10 days for time-lag with regards to 'direct-debit' !!!!

    Anyway my mortgage (0.6% tracker) comes out weekly, I saw the CUT on Nov 3rd !

    Bo!!ixes.... :rolleyes:

    Edit:
    Actually, looking back tru my account, I see an old rate hike, shows up in my account on the 22nd march,
    effective the next week, 26th march !!!!!


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