Permanant TSB to raise mortagae interest rate

Taxipete29

http://www.breakingnews.ie/ireland/permanent-tsb-to-raise-mortgage-interest-rates-419875.html

This is not a major surprise as it was well forecasted. However this has to be bad news for mortgage holders and the economy in general. Consumer confidence is low as it stands. An interest rate hike without a move in the ECB base rate I believe sends a bad signal to consumers.

Is it time for the Government to step in and do something??
I think if we the taxpayer are guaranteeing these banks then the interests of the economy as a whole need to be taken into account when such decisions are made.

spank_inferno

Your right its not a surprise at all.
And where I on the board of this bank I would have been planning it for some time.

IMO, The banks missed an oppertunity with this years interest rate reductions.
Eg: ECB drops rate by 0.5%...... pass some to the consumer and use the rest as elbow room to improve cash flow, profitability etc.

Long term it could have meant we may not have needed to give 3 of the banks 10 billion euro to capitalise themselves.

Of course its socially abhorent and they do owe the Irish people a lot for the bak garauntee scheme which I never thought was a good idea & NAMA even worse.

However the board of the bank is elected by their shareholders and they act in the interest of said shareholders.

So again, not a surprise.
I just wish our government would surprise us all and start acting in our interest!

eamonnm79

spank_inferno wrote: »

However the board of the bank is elected by their shareholders and they act in the interest of said shareholders.

Shareholders?

They wouldnt have shareholders if it were not for the Guarantee given to them by the Irish tax payer. And since they are the biggest residential mortgage provider there is a huge cross over.
You should have hear Gerry Ryan this morning.
He was telling people to get out their Pitchforks!
I am sure the fact he has a mortgage with them had nothing to do with his emotive reaction;)
I didnt see him have the same reaction when bank of Scotland did the same thing last month.

However that is not to say he is not correct by the way

Sand

If banks operated in the interests of their shareholders, then they wouldnt have overextended themselves with 110% mortgages given to anyone with a pulse for houses in the middle of Letrim and other hotspots...

The government should send a simple message to Permament TSB ( and any other banks that are considering similar leveraging) that if they want to profiteer in this current climate, then they are on their own when it comes to NAMA, and the bank guarantee on their deposits/bond holders will also be retracted. The relationship between the taxpayer and the bank needs to be more give and take, not take, take, take, take just to preserve the banks - the vast majority of whom are of dubious value anyway.

Its ridiculous that the government ( I.E. the taxpayer) gets ****ed royally to guarantee bank deposits, bank bonds (this in particular is outrageous...bonds are not deposits...), takes on the massive losses caused by the banks speculatory loans AND the taxpayer also gets ****ed by the banks profiteering on their mortgages.

If Fianna Fail ( Brian Lenihan) were to play hardball with this and force TSB and the other banks to back down on this point ( and they really, really need us more than we need them - we can always get new banks, they wont get anyone else to bail them out), they would gain something politically. If they meekly accept it, then they will just continue their current trajectory to political annialation at the next general election.

ardmacha

The PTSB has more depositors than borrowers, so this is supportive of decent rates for depositors. It is the borrowers not the depositors who caused the present mess.

Finnbar01

This is only the beginning my friends. With all the money printing going on, devalued currencies and government deficits; super inflation is on the way. One of the ways to bring down high inflation is too increase interest rates, double digit interest rates at that. People with tracker mortages are going to be wiped out.

therewillbe

Are these muppets HAVING A F.....G LAUGH OR WHAT? Any one who can switch Please do it and keep switching.These f...... are screwing you :mad::mad:
Man I AM PI..ED OFF AND I DONT HAVE A MORTAGE.

Finnbar01

therewillbe wrote: »

Are these muppets HAVING A F.....G LAUGH OR WHAT? Any one who can switch Please do it and keep switching.These f...... are screwing you :mad::mad:
Man I AM PI..ED OFF AND I DONT HAVE A MORTAGE.

I don't think it is as easy as that. If your house is in negative equity, you will not be able to switch. As far as I know I'm afraid.

therewillbe

Yes, Probably.Just does my head in.They want & want.But if you can , leave them and they may then get the message.

nayorleck114

Thank God I have a tracker!, Only Paying 1.75% interest at the moment.

Ironbar

It's about time we take to the streets. That's why I admire the french - they have more balls than the rest of Europe together....

How long do we have to take this bull***t from the politicians and the banks ? This whole thing is just a big scam to make the banks even richer. When they make profits now they can give themselves huge bonuses again. That's all they want.

And don't think the politicians will do anything. They're gatting paid by the banks or get the loans interest free. Bananarepublic the whole of Europe !! We need a new revolution !!!

eamonnm79

I really do not understand why the unions and the Labour party have not organised any mass marches yet with regards to Nama and the Government Guarantee. Its a political open goal as regards getting the public on their side.

There were reports on the news of customers spitting at TSB employees.
If anyone out there is going to start being agressive towards TSB employees they should ask for the manager first.

eamonnm79

ardmacha wrote: »

The PTSB has more depositors than borrowers, so this is supportive of decent rates for depositors. It is the borrowers not the depositors who caused the present mess.

More in number but no where near in value.
Its the TSB themselves who are most culpable. They have much lower deposit rates (33%) than BOI 58% and AIB 71%.
Since 2/3 of their loans are funded by the money markets they are even more dependent on the Guarantee than any other institution.

ardmacha

More in number but no where near in value.

Is it not the business of government to concern itself about the larger number of its citizens, especially prudent ones. Present interest rates are still at historic lows.

Its the TSB themselves who are most culpable. They have much lower deposit rates (33%) than BOI 58% and AIB 71%.
Since 2/3 of their loans are funded by the money markets they are even more dependent on the Guarantee than any other institution.

The only way the guarantee can end and this shadow be removed from the public finances is if banks can restore their capital ratios. Giving out cheap loans at the behest of politicians is the Zimbabwe route.

nayorleck114

Ironbar wrote: »

It's about time we take to the streets. That's why I admire the french - they have more balls than the rest of Europe together....

Sure we can be like the french, but we would also need to pay taxes like the french.