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Future ECB Rate Cut Passed On ?

thegoth · 2008-10-31 13:39:16

Hi, I am wondering if future ECB cuts, which are only weeks away if all the hype is to be believed, is likely to be passed onto mortgage holders with variable rate mortages, not trackers ?

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31-10-2008 2:39pm

#1

thegoth

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Hi,

I am wondering if future ECB cuts, which are only weeks away if all the hype is to be believed, is likely to be passed onto mortgage holders with variable rate mortages, not trackers ?

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#2 31-10-2008 3:38pm
dubmick

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unfortunately with a variables you will just have to wait on see

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#3 31-10-2008 7:40pm
dotsman

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Yup, Only trackers are guaranteed the full rate cut.

However, with the last rate cut, all the main banks passed it on in full to Variable as well (although according to the way this thread is panning out, First Active have a lot of explaining to do!).

My guess, the main banks will pass on at least some (possibly all) of the rate cut to the Variable mortgages. They are currently caught in a hard place, between trying to maintain/improve their reputation/goodwill while also being hit with stubbornly high Euribor rate (which is the actual rate that they borrow at, not the ECB)

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