banks transferring cut in interest rate

paddles

The ECB cut the rate lat week yet I still paid the same rate on my mortgage yesterday. I thought the reduction was passed on immediately? I have a tracker. Was it too soon ie within the week or something??

cookie1977

The reduction is usually passed on within 30days if you're on a tracker (read your mortgage T&C's as these will state what happens). Otherwise if you're on a standard variable rate mortgage the bank may or may not pass on the discount to you.

chris85

paddles wrote: »

The ECB cut the rate lat week yet I still paid the same rate on my mortgage yesterday. I thought the reduction was passed on immediately? I have a tracker. Was it too soon ie within the week or something??

The cut doesnt even come into effect until tomorrow. Banks have number of weeks to pass it on. They would have to apply the change and test its working ok just to be sure no overcharging or undercharging occurs.

Check your banks website and it should say when it will come into effect on your tracker mortgage.

rameire

as above, it was announced last thursday, but does not take effect until tomorrow, ( wednesday )
this is the way it always works.
then as stated, the bank have the set amount of time as laid out in your mortgage contract to apply the change to your tracker rate.

Pablo Sanchez

....but unfortunatly they can pass on any rate increases immediatly...and they do!

greenman09

Even when increased it takes a week or 2 to be applied.

3DataModem

Pablo Sanchez wrote: »

....but unfortunatly they can pass on any rate increases immediatly...and they do!

Ulster Bank pass increases and decreases on at about the same time (i.e. the month after).

Pablo Sanchez

That might be when you get the notification but im sure they back date the interest to when the rate rise came into effect.