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TSB look to increase variable mortgage interest rates by .5%

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  • 24-07-2009 10:17am
    #1
    stevoman
    Registered Users Posts: 3,041 ✭✭✭


    http://www.independent.ie/business/personal-finance/property-mortgages/mortgage-hike-shock-1838377.html

    Are these people for real? Just when people in the country are being sqeezed enough the fat cats are deciding that they are going to try get more from some of the irish people.

    How much longer as a country of people are we going to put up with greedy bankers looking to tighten the noose on our necks and let a goverment that is more interested in party survival than the well being of their country run things?

    Honestly this country is just gone beyond and fcucking joke at this stage, (pardon my french.)


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    #2
    death1234567
    Registered Users Posts: 3,333 ✭✭✭death1234567


    The problem is the barriers in place if you want to switch your mortgage from one bank to another. Once you go to bank and get a mortgage then you are stuck with them for 30 odd years. They can increase the price all they like and you just have to sit there and take it. There should be a maximum fee of ~€500 to transfer your mortgage from one bank to another. This would create actual competition in the market and mean that things like this wouldn't happen.

    Oh and your right this country is a complete shambles.


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    #3
    Taxipete29
    Closed Accounts Posts: 1,531 ✭✭✭Taxipete29


    death1234567 wrote: »
    The problem is the barriers in place if you want to switch your mortgage from one bank to another. Once you go to bank and get a mortgage then you are stuck with them for 30 odd years. They can increase the price all they like and you just have to sit there and take it. There should be a maximum fee of ~€500 to transfer your mortgage from one bank to another. This would create actual competition in the market and mean that things like this wouldn't happen.

    Oh and your right this country is a complete shambles.

    The barriers in place now are the fact that many people are in negative equity. I would imagine any bank would be delighted to allow someone to switch their mortgage, but no other bank would have them.

    A few years ago several banks paid for holders to switch their mortgages. Their was competition and fierce at that.Banks tried to outdo each other with more attractive products to get people to sign up. Thats part of the problem we have now.


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    #4
    andrewdeerpark
    Registered Users Posts: 951 ✭✭✭andrewdeerpark


    These are the same bankers who fell over each other in a race to finance Carroll, Dunne, McNamara , Crosby etc in their inflated purchase of multi-million euro land banks in particular D4.

    NAMA will rescue these boys and the bankers; to hell with the ordinary peasants, we will pay through the nose (or loose our homes) in extra taxes and increased mortgage payments. What a country.... contrast with the US and all those folks in New Jersey going to jail; that will never happen in Ireland.


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    #5
    eoinbn
    Registered Users Posts: 798 ✭✭✭eoinbn


    From that article it seems that they will still be a lot cheaper than some of the other banks. Anyway interest rates are already artificially low to try and boost the EU economy. If people can't repay at 3-4% then they will have no chance in a few years when it is back at 6-8%. People in this country over borrowed and will pay the price.


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    #6
    Riskymove
    Registered Users Posts: 10,888 ✭✭✭✭Riskymove


    eoinbn wrote: »
    From that article it seems that they will still be a lot cheaper than some of the other banks.

    it does gloss over the fact that not all banks have passed on all the cuts in rates. which is worse? not reflecting ECB rates at all? or passing them on and then "reluctantly" deciding you need to increase them?


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    #7
    stevoman
    Registered Users Posts: 3,041 ✭✭✭stevoman


    eoinbn wrote: »
    People in this country over borrow and will pay the price.
    what price is that? people all over the country being evicted from their houses that nobody else can afford to buy so the banks cant sell. thats the whole idea of having these low interest rates for a few years. to help people get out of a hole. never going to happen.

    on a €300k mortgage .5% increase means approx €70 extra a month. To a family out of work that could be one week of their monthly shopping in lidl or somewhere.


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    #8
    eoinbn
    Registered Users Posts: 798 ✭✭✭eoinbn


    stevoman wrote: »
    what price is that? people all over the country being evicted from their houses that nobody else can afford to buy so the banks cant sell. thats the whole idea of having these low interest rates for a few years. to help people get out of a hole. never going to happen.

    on a €300k mortgage .5% increase means approx €70 extra a month. To a family out of work that could be one week of their monthly shopping in lidl or somewhere.

    What's the price? Their house.

    A family out of work can't afford to pay for a mortage anyway.


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    #9
    Riskymove
    Registered Users Posts: 10,888 ✭✭✭✭Riskymove


    eoinbn wrote: »
    What's the price? Their house.

    A family out of work can't afford to pay for a mortage anyway.

    they might.... between welfare, savings etc..

    but an extra €70 will hurt


    but you are essentially right, the people who borrowed to the maximum of their affordablity, at the lowest rates and the highest house prices were always likely to be in trouble at some point


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    #10
    Raskolnikov
    Registered Users Posts: 10,148 ✭✭✭✭Raskolnikov


    stevoman wrote: »
    How much longer as a country of people are we going to put up with greedy bankers looking to tighten the noose on our necks and let a goverment that is more interested in party survival than the well being of their country run things?

    Honestly this country is just gone beyond and fcucking joke at this stage, (pardon my french.)
    You do realise that a variable rate of 2.69% is spectacularily low, and probably the lowest mortgage rates available in the Eurozone?

    Even though the base rate is 0.25%, I am paying 3.75% variable (that's actually very competitive) for my UK mortgage. In the USA, mortgage rates are at least 5%, despite the fact the base rate is at 0%.

    Come to think of it, I don't know of a country in the world that has such favourable mortgage rates as Ireland has at this moment. Short of paying people's mortgage, there's nothing more The Two Brian's could be doing for Irish mortgage holders.


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    #11
    Riskymove
    Registered Users Posts: 10,888 ✭✭✭✭Riskymove


    Raskolnikov wrote: »
    Short of paying people's mortgage, there's nothing more The Two Brian's could be doing for Irish mortgage holders.

    they are actually paying for some of it!!


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    #12
    newname
    Closed Accounts Posts: 139 ✭✭newname


    People in this country over borrowed and will pay the price.

    I can almost sense glee from your post. People may have over extended themselves and may now lose everything - a tough outcome for people who just wanted a job and a roof over their head.

    Ordinary joe went in for a mortgage and was given the hard sell by the supposed experts and borrowed on their advice. Now he is being hung out to dry by the same banks. The same banks that are being bailed out by joe and the rest of the taxpayers - quite sickening really.


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    #13
    gurramok
    Closed Accounts Posts: 13,992 ✭✭✭✭gurramok


    Its called living "within your means"

    God help those people when ECB rates go back up. If they were struggling in September '08 on 6%+ retail rates, how are they struggling on 3% retail in July '09? (assuming no job loss)

    The bankers can do what they want. If the TSB went bust, it would affect our banking system hence the govt can shout all they want, it wouldnt help anyone.


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    #14
    the drifter
    Closed Accounts Posts: 7,348 ✭✭✭the drifter


    ive just taken the decision to go 5 yr fixed because of this...im luck enough to have a decent job at the moment and the montly repayments on the 5yr fixed is within my means ( wouldnt have built the house otherwise) its an extra 140 a month out of my wages but at least ill be some what safe if the ECB rate goes back up


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    #15
    dodohert
    Registered Users Posts: 93 ✭✭dodohert


    PTSB ...feckers!


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    #16
    andrewdeerpark
    Registered Users Posts: 951 ✭✭✭andrewdeerpark


    the drifter wrote: »
    ive just taken the decision to go 5 yr fixed because of this...im luck enough to have a decent job at the moment and the montly repayments on the 5yr fixed is within my means ( wouldnt have built the house otherwise) its an extra 140 a month out of my wages but at least ill be some what safe if the ECB rate goes back up

    Unless you are getting a mouthwatering deal fixed I would personally advise against such a move; fixing mortgage rate. ECB rates when they go up will increase slowly and more that likely top out at 4% (several quarters from now could be 2-3 years time), assuming robust global growth returns or US defaults on its debts (likely: then all in the real s**t).

    Just my advice, in particular anyone on tracker would be mad in the head to change to fixed.


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