Banks passing on ECB rate cuts..or not

DEVEREUX

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

sofireland

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

jhegarty

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

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

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.

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)

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.

dotsman

redroar1942 wrote: »

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)

TheDriver

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

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.

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.

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.

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.

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.

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.

Avns1s

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

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%

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.

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.

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.

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:

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?

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.

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.

dubmick

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

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

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

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!

niceirishfella

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

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!

DeadSkin

generalcuster wrote: »

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.