Rates cuts - banks differ on approach

Orion

Irish Times

NIB - no cut
UB/FA - no cut
Halifax/BoS - full .5% cut
TSB/AIB/BoI/ICS/KBC - full cut to residential loans.
EBS - full .5% cut

I don't see how they can justify not passing on the full cut. I'm with FA and they are always very slow to send out the letter passing on the rate cuts anyway - this time they're haven't decided to pass on the cut at all. :mad:

dotsman

All banks pass on the cut in full to their tracker customers as that is the purpose of a tracker mortgage.

Banks are free to do what they want with variable rate mortgages as that is the whole definition of a variable rate mortgages.

What we're seeing here is the separation of the men from the mice with regards how well individual banks treat their customers. Some banks (AIB & Halifax from what I have noticed) have been very fast to pass on the rate cuts to their already competitive rates. Others do pass them on, but are slow to do it (ie a month after the rate comes down). Others don't bother at all.

The problem with people getting mortgages is that they don't look at the full picture (despite, arguably, engaging in the biggest financial decision of the lives). one should not choose a bank based on how much money they are willing to give (I think a lot of people are beginning to catch on with this one), nor how fancy their advertising/brochure is. One should not even let the current variable rate be a huge factor. Instead people should look at the whole picture : current rate, history of their rates (as an indication of how likely they will still be competitive in the years to come and that this is not a temporary competitive move), customer service, arrears management (how likely are they to harass you/take legal action etc should you ever miss payments).

Maybe now, people will start to examine what banks they deal with in future and not just be tempted by some immediate special offer/advertisement etc.

Not aiming this at any particular bank, nor saying that any one bank is perfect. But the amount of people I know, and the amount of people on boards, who just signed up to a 30-35 year contract worth vast sums of money without actually putting a lot of thought into it is frightening!

dudara

Moved to Banking, Insurance & Pensions

dudara

dlambirl

Are PTSB going to pass on the recent cut??

delop

I rang Ulster bank this morning to find out why they would not pass on the cut to their variable rate customers including me, I was thinking of changing my mortgage to AIB, Mine would be attractive as I have a low Loan to value ratio..


I was told that Ulster Bank have made no decision on the latest cut, and anything I have heard to the contrary was 'Media Speculation' they will decided next week.....

Thats a bit strange isnt it?

adox

delop wrote: »

I rang Ulster bank this morning to find out why they would not pass on the cut to their variable rate customers including me, I was thinking of changing my mortgage to AIB, Mine would be attractive as I have a low Loan to value ratio..


I was told that Ulster Bank have made no decision on the latest cut, and anything I have heard to the contrary was 'Media Speculation' they will decided next week.....

Thats a bit strange isnt it?

I heard that they cut by .25%?

dotsman

After the rate cut was announced, UB & FA both said they would not pass it on in full, but would review the situation and consider passing on some of it.

As of today, UB have announced they are passing on half the rate cut (0.25%).

More detail here...

Now, the big question is when they will pass it on. To date, from my observations, AIB and Halifax have been the quickest (5 working days after the rate comes into affect). Others are not too bad, but some (PTSB for one) have taken an awful long time with regards previous rate cuts and have indicated April 3rd on the above link.

Ginger83

Greedy F-ing Ulster Bank. This is not the 1st time they have done this.
I know what I'm doing asap-MOVING TO ANOTHER BANK
I will also move all business I have and the business my partner has away from Ulster Bank. I'm sure if enough do they will regret their actions.