Permanent TSB plans hike in variable home loan rates

AntiRip

This isn't good news for mortgage holders!

http://www.independent.ie/business/irish/permanent-tsb-plans-hike-in-variable-home-loan-rates-1831796.html

HOMEOWNERS with variable rate mortgages are in for a shock as one of the largest lenders in the market, Permanent TSB, is poised to hike its standard variable rate for existing home loan customers.
The move is likely to be followed by other lenders in the Irish market, despite the fact that there are no indications that the European Central Bank is planning to raise its rates any time soon.
Mortgage experts said the cost of variable rate mortgages have never before been increased for existing customers in this market.
Sources indicated yesterday that Permanent TSB was poised to raise its standard variable rates for existing mortgage customers by as much as 0.75 percentage points next week -- erasing the effect of three typical recent rate cuts from the European Central Bank.

ddmcin

I knew it was too good to be true when they let us switch from fixed to variable penalty free early this year. 70 extra smackers from monday :mad: looks like other banks will follow suit

xxfelix

A bit of advice from those of you that are in the know!

I have a Tracker Mortgage that is due for renewal soon and i am confused as to what to switch to. I heard eddie hobbs advice that anyone with a mortgage should fix it for 10 years.

ADVICE PLEEEEASE!!!

I am totaly Clueless...

Thanks All

Drummerboy2

A disgrace if you ask me. Pure profiteering, even though they are being guaranteed by the taxpayers.

Sleipnir

xxfelix wrote: »

A bit of advice from those of you that are in the know!

I have a Tracker Mortgage that is due for renewal soon and i am confused as to what to switch to. I heard eddie hobbs advice that anyone with a mortgage should fix it for 10 years.

ADVICE PLEEEEASE!!!

I am totaly Clueless...

Thanks All

Anyone currently on a variable rate mortgage might be wise to fix it. However if you've got a Tracker I would say stick with it as you'll never be able to get one again. None of the banks offer them anymore and the reason for that is that Tracker mortgages don't make them any money!
Bad for the bank = good for the customer!

jon1981

Gerry Ryan was on the radio this morning fuminng...telling us all not to pay! and he will lead the way telling people to stop paying mortgages...not a very sensible approach!

Maxster

They're not the worst bank around but its a big blow to all mortage holders because all the banks are waiting behind TSB to take the abuse before they increase they're rates.

All eyes on Brian Lenihan's government bank guarantee acheme to see what can be done to force TSB to back down.

If the banks are funding so few new mortages in Ireland how can they justify that its costing them more to get finance from international lenders?

I e-mailed my local TDs this morning for the first time ever to see what they're response would be.

Flamed Diving

Changing your mortgage - introduction

http://www.itsyourmoney.ie/index.jsp...nID=94&nID=103

Dabko

Brian Lenahan has no balls, he couldnt manage a good sh1te let alone a nations finance department.:mad:

PTSB, like all banks, are pure greed mongers, making the the ordinary decent people pay for their mistakes. Its a disgrace tbh. Im sooo sick of this countries utter greed from the private sector, who have dressed the politicans up in gimp suits and have made b1tches of them.

Toots

Dabko, we'll have less of that please. Obviously this is a situation which is sensitive for people, but many of the posters on this forum are staff in the banks, and I'm sure they would not appreciate this type of posting.

upandadam

I think the only way to hurt these greedy banks are to withdraw any deposits we hold with them.

Between myself and my extended family we have @€;200k with Permanent TSB which we are going to withdraw from there bank on Monday.

If everybody else who have deposits with them did the same ,it would sort them out and let them know that we have the power to do something ,unlike our present Government,who seems cannot do anything,except to protect these greedy bankers.

So Lets start a campaign of withdrawls and see if they change there mind.

stepbar

upandadam wrote: »

I think the only way to hurt these greedy banks are to withdraw any deposits we hold with them.

Between myself and my extended family we have @€;200k with Permanent TSB which we are going to withdraw from there bank on Monday.

If everybody else who have deposits with them did the same ,it would sort them out and let them know that we have the power to do something ,unlike our present Government,who seems cannot do anything,except to protect these greedy bankers.

So Lets start a campaign of withdrawls and see if they change there mind.

Very smart idea :rolleyes: Very smart idea to start a run on the bank.

I don't even know why I reply to these sort of threads. It's getting a bit tired TBH :rolleyes:

eman66

I am having thoughts of fixing for ten years (hadn't heard that EH recommended this). Spoke to my mortgage broker who completely disagreed. Said I should fix for one year and I'd still have plenty of time to fix for longer. Very confusing.........

Blackjack

stepbar wrote: »

Very smart idea :rolleyes: Very smart idea to start a run on the bank.

I don't even know why I reply to these sort of threads. It's getting a bit tired TBH :rolleyes:

+1.

Dabko

Toots* wrote: »

Dabko, we'll have less of that please. Obviously this is a situation which is sensitive for people, but many of the posters on this forum are staff in the banks, and I'm sure they would not appreciate this type of posting.

I dont understand? Why tip toe about a situation which is clearly wrong, no matter whether the posters here are bank staff or airline pilots? Them very bank staff that post here also have mortgages/loans with this bank.
I didn't insult the bank staff, that would be ignorant of me to think its their fault.
Sensitive situation, yes, if your Brian Lenihan.

McSandwich

upandadam wrote: »

I think the only way to hurt these greedy banks are to withdraw any deposits we hold with them.

Between myself and my extended family we have @200k with Permanent TSB which we are going to withdraw from there bank on Monday.

If everybody else who have deposits with them did the same ,it would sort them out and let them know that we have the power to do something ,unlike our present Government,who seems cannot do anything,except to protect these greedy bankers.

So Lets start a campaign of withdrawls and see if they change there mind.

I'll be doing the same if they go ahead with the increases. Many others I know have said that they intend moving their accounts elsewhere too.

stepbar wrote: »

Very smart idea :rolleyes: Very smart idea to start a run on the bank.

I don't even know why I reply to these sort of threads. It's getting a bit tired TBH :rolleyes:

Based on the levels of public financial pressure and anger, PTSB (and any other bank considering a mortgage rate increase at the present time) better cop on if they want to avoid a run.

parsi

How are the banks ever going the get out of the mess they are in if they can't act in a commercial manner (for fear of the Joe Duffy brigade) ?

Better their customers to pay rather than the whole tax-paying population...

McSandwich

parsi wrote: »

How are the banks ever going the get out of the mess they are in if they can't act in a commercial manner (for fear of the Joe Duffy brigade) ?

They have proven that they can't yet still expect us to bail them out.. There wouldn't be a mess if they acted properly to begin with, why should or anyone else not responsible (including those in the "the Joe Duffy brigade") be made pay?

Better their customers to pay rather than the whole tax-paying population...

The same customers who have always paid and will continue to pay, unfortunately though that doesn't include certain customers to who it seems different rules apply (some banks more than others of course)..

DJDC

They have proven that they can't yet still expect us to bail them out.. There wouldn't be a mess if they acted properly to begin with, why should or anyone else not responsible (including those in the "the Joe Duffy brigade") be made pay?

The Irish banks have to pay a premium to Euribor in the wholesale markets due to their terrible performance recently. They have to increase rates, its as simple as that. I guarantee AIB and BOI will increase their rates too in the next 30 days. There is nothing you can do about it short of emigrating.

McSandwich

DJDC wrote: »

The Irish banks have to pay a premium to Euribor in the wholesale markets due to their terrible performance recently. They have to increase rates, its as simple as that. I guarantee AIB and BOI will increase their rates too in the next 30 days. There is nothing you can do about it short of emigrating.

Indeed, I've had to take a pay cut and due to the government's terrible performance taxes and levies have increased. This was just about bearable for me because of falling interest rates - not anymore..

I will have to pay the best part of €100 extra per month - which would otherwise be spent in our dwindling economy or maybe added to my hard hit savings.

Meanwhile, banks benefit from government guarantees, will soon be able to offload their debts on tax payers (sorry nama), and continue to make profits http://archives.tcm.ie/irishexaminer/2008/10/29/story75964.asp while many business and jobs are lost because there is no money available.

What a mess! If I could sell my house and pay my mortgage with enough left for the price of a one way flight to anywhere, I'd be off. :pac:

Toots

Dabko wrote: »

I dont understand? Why tip toe about a situation which is clearly wrong, no matter whether the posters here are bank staff or airline pilots? Them very bank staff that post here also have mortgages/loans with this bank.
I didn't insult the bank staff, that would be ignorant of me to think its their fault.
Sensitive situation, yes, if your Brian Lenihan.

Yes, so these bank staff have to deal with potential interest rate hikes just like everybody else. The difference is they have to put up with the abuse about it from the general public also. Someone actually spat on a PTSB staff member yesterday. :mad: It's bad enough having to deal with it at work without getting it here too.

Seriously guys, by all means debate the topic constructively, but if this thread gets bogged down with bank-bashing, I'm going to lock it.

Toots

eman66 wrote: »

I am having thoughts of fixing for ten years (hadn't heard that EH recommended this). Spoke to my mortgage broker who completely disagreed. Said I should fix for one year and I'd still have plenty of time to fix for longer. Very confusing.........

The only thing about fixing for 10 years is the rate you'd be paying would be pretty high. Who knows what way things are going to go in the next few years. Rates could go up, but they might not stay up. Personally I'd be wary of fixing for such a long period. Check out what the 10 year fixed rate is though, and see is it much more expensive than what you're paying now.

AntiRip

Toots* wrote: »

Yes, so these bank staff have to deal with potential interest rate hikes just like everybody else.

Does the staff not get a discounted interest rate from the bank that they work?

Toots

Some do some don't. If they choose to take the discounted rate, they usually have to pay Benefit in Kind on it. Personally, I'm on a commercial variable rate, because the discounted rate my bank offers me actually works out much more expensive because of the tax implication.

BankMan

Toots* wrote: »

Some do some don't. If they choose to take the discounted rate, they usually have to pay Benefit in Kind on it. Personally, I'm on a commercial variable rate, because the discounted rate my bank offers me actually works out much more expensive because of the tax implication.

Same for me.

AntiRip

Thanks for clearing that up guys.

It's unreal that some staff are getting a hard time for this. Frankly, anyone that takes this out on the staff are just plain ignorant :rolleyes:

BankMan

Well to be fair it is the staff's job to listen to customer complaints etc. When the abuse starts there's a problem though.

AntiRip

BankMan wrote: »

Well to be fair it is the staff's job to listen to customer complaints etc. When the abuse starts there's a problem though.

Nothing at all wrong with complaining, spitting though is taking it too far

daveirl

This post has been deleted.

eman66

Toots* wrote: »

The only thing about fixing for 10 years is the rate you'd be paying would be pretty high. Who knows what way things are going to go in the next few years. Rates could go up, but they might not stay up. Personally I'd be wary of fixing for such a long period. Check out what the 10 year fixed rate is though, and see is it much more expensive than what you're paying now.

10-year fixed is 4.65, 5-year is 3.86. SVR is 2.65, with 1-year fixed at 2.35. With rates guaranteed to rise, and 7% wouldn't be a surprise, it seems to me that to fix would be the right thing to do. I've never been concerned with mortgage interest rates before now so don't know anything really. Just trying not to make a balls of it. As I was saying, broker advised to fix for a year but 12 months in the current situation is a long time. I think the question for somebody considering going with a fixed rate is not how high rates will go but how quickly will they rise, right? And after that I suppose, how quickly the will rates fall again when we come out the other side. 10 years is not an unimaginable time period for this. Help!

Colonel Sanders

jon1981 wrote: »

Gerry Ryan was on the radio this morning fuminng...telling us all not to pay! and he will lead the way telling people to stop paying mortgages...not a very sensible approach!

The same Property Schill who has shamelessly promoted property and announced numerous 'bottoms' over the last few years

See here Xman's post, the first on page 4 of thread