pTSB interest rate hike

Dempo1

Patch123 wrote: »

@adcom. Thanks for your advice. However, I rang the bank and was told that fixed interest rates have now been suspended, and will remain suspended for the next ten days. I was also told that there has been no confirmation on the rate increase as yet, so nothing is fully confirmed - but she still worked out the effect of a 1% increase for me. That’s customer service for ya.

To the nobody-held-a-gun-to-your-head brigade: We live in a country where for years public and private discussion among family,friends,media,companies and government was predicated upon the benefits of property investment. My sympathy will always remain with a person in trouble with their mortgage, despite any contract 'freely' entered into: every ‘cue’ listened to in society continued telling us it was a good idea for as long as it was in their interests to do so.

Companies are supposed to act in their own interests, though aren’t they? No amount of regulation will change this. There is a night and day disparity in the power of a bank compared to an individual to act and change their circumstances. We need to change the paradigm, not fiddle with it. I don’t have the answers though - and socialism sure as hell doesn’t work! Anyone got any ideas? Maybe I’m in the wrong forum…

Put very elegantly and I too am tired of the "No one put a gun to your head brigade"

These narrow minded brigade apparently forget the many thousands of citizens who aspired to purchase a "HOME", not a piece of speculative property. Many, many mortgage customers have had their circumstances change and for the most part not from their doing. Stastics show the grim amount of mortgage defaults but they fail to show those who are and have been making genuine efforts to keep their FAMILY HOMES, whether it be through restructuring or interest only payments. I fear such an excessive rate rise which can not be justified for mortgages taken out years ago based on Money then borrowed by banks at very low rates, will push many people over the edge. What i fail to understand is why if Banks are so determined to enforce terms and conditions on Original mortgages could they not equally be forced to adhere to the original interest rates agreed at commencement of said mortgages, Mine was a reasonable 3%.

As an aside, perhaps someone could explain why if its the case the Mortgage Loan Model is in such a state of affairs, could there be a case whereby existing Mortgages could not be re worked

• Look at outstanding balance
• Agree a manageable and realistic monthly FIXED PAYMENT with agreed fixed interest rate for the term of the balance outstanding.
• Yes extend the term if necessary

I accept there are clearly some hopeless situations but i firmly believe a substantial amount of mortgages could be reworked to the benefit of everyone.

Just some humble thoughts!

Rabidlamb

1% rate rise confirmed, effective from March 7th.
http://www.rte.ie/news/2011/0204/ilp-business.html

Permanent TSB also confirmed that it will raise the interest on its standard variable mortgage rate and other variable mortgage rates by one percentage point. The standard variable mortgage rate will increase to 5.19%.

The increase will affect mortgage repayments from March 7. Permanent TSB says the impact of the rise on its average standard variable mortgage rate will be about €33 a month.

The bank also said it does not intend to make any further increases this year outside of any increase in ECB rates.

Officer Giggles

Was there any comment on whether they might discontinue the fixed rate mortgages like some media are speculating on

Cookie_Monster

JimiTime wrote: »

Its unfortunate that there are so many, 'Its your fault, deal with it' folk out there. These are unprecedented times, which NO-ONE could forcast. Alot of hindsighters of course.

I resent that comment.

How anyone in this country could look at a house and think it was worth 600k/800k/1m is beyond me. We talked about looking at houses a little but until they fall to at most half of what the average is now I still would never ever buy a house here. (maybe I'm just tight:D)

Maybe its cos I know the cost of my parent's house back in the 80's and nothing short of magic could have made it worth 20-25 times what it was worth then, now and that gave me some appreciation of the insanity of it all. It's not rocket science to see how vastly vastly overpriced houses have been for the last 10-15 years.


As some people have already mentioned the rates is going to go a lot higher than 5 or 6% over the next two years also, this is only the start of it.

Dempo1

Cookie_Monster wrote: »

I resent that comment.

How anyone in this country could look at a house and think it was worth 600k/800k/1m is beyond me. We talked about looking at houses a little but until they fall to at most half of what the average is now I still would never ever buy a house here.

Maybe its cos I know the cost of my parent's house back in the 80's and nothing short of magic could have made it worth 20-25 times what it was worth then, now and that gave me some appreciation of the insanity of it all. It's not rocket science to see how vastly vastly overpriced houses have been for the last 10-15 years.


As some people have already mentioned the rates is going to go a lot higher than 5 or 6% over the next two years also, this is only the start of it.

You can resent this and other similar comments till the cows come home, there seems to be an obsession with people who took out ridiculous mortgages however what appears to be forgotten is the fact that there are countless people who took out responsible mortgages and are equally suffering because of serious changes in their circumstances, whether it be unemployment, loss of hours or reductions in salary. I do accept there are equally people who acted foolishly but i am certainly not one of those with a mortgage of 10 years, spotless record and now having to rely on the good grace of PTSB for interest only payments until things improve.

Bullseye1

danbohan wrote: »

its nothing to do with trackers or otherwise mon ami , its to do with basic common sense . anybody that did not realise that interest rates of 2% or 3% or 4% were not normal could not continue was childish in the extreme , an average interest rate of 8% to 10% over the life time of the mortgage should have been what people were budgeting for , but no , many got greedy and over stretched themselves by a wide margin and now its all the banks , politicians , developers fault !!!!

I would say this is alot to do with trackers. The banks have too many of the on their books and the only way they can offset the cost is to **** everyone else.

Bullseye1

BTW to all those people who are saying this is just business. I hope you guys don't get in trouble like many people appear to be in.

Banks were making profits on these small interest rates. It was there irresponsible lending of hundreds of millions of euros to developers etc which has caused their problems, this and the amount of tracker mortgages out there.

km79

requested letter of offer for fixed rates of ulster bank last week. eventually came yesterday i was going for 4.3 fixed for 3 yrs. letter says rates are valid for ten days from date of letter 31/01/11. will they/should they honour this if i bring it into local branch on monday

greenenerg

yes i have enough now time to stand up to tsb they should not get away with this rise it will encourage all banks to give a rate rise 80000 people will be affected time to plan

greenenerg

fcdub wrote: »

Has anyone else had enough of all these hikes from PTSB :mad:? Its gone beyond a joke.

yes i have enough i% is too much this puts your interest up by 25% when people are under pressure what next

Toboldlygo

greenenerg wrote: »

yes i have enough i% is too much this puts your interest up by 25% when people are under pressure what next

Quoting rates like 25% is missing the point just a little. 25c is 25% of 1 euro and not much in actual money, not that I am suggesting that your mortgage is 1 euro but I hope you get the point!.

Interest rates have been at a all time low for quite a some time and after all the Banks have not been charging customers the actual cost to them of borrowing on the money markets. Perhaps if there had not been such a outflow of deposits from the Irish Banks over the past few months, by those who are seeking better returns on their deposits, this increase for borrowers might have been less.

incidently, is there anyone out there who was forced to borrow? Time to step up and concede that we are all responsible for our own decisions or is that just an old fashioned idea?

Jannise

For those who are saying: try to move the morgage. it is not possible!!! Spoke with 4 lending institutions. they are more than happy to aproove me for a new mortgage, but they are not accepting a transfer. honestly, don't see the difference, as it is the same amount. And i am not in negative equity and have a current valuation. Crazzy

Dempo1

Jannise wrote: »

For those who are saying: try to move the morgage. it is not possible!!! Spoke with 4 lending institutions. they are more than happy to aproove me for a new mortgage, but they are not accepting a transfer. honestly, don't see the difference, as it is the same amount. And i am not in negative equity and have a current valuation. Crazzy

Yep pretty much sums up what is really going on in the banking market, i love the way they try and appease by stating how glad they would be to offer a new Mortgage and yet the existing one which i am sure you had to jump threw numerous hoops to get stands for nothing.

I don't care what the so called experts are saying, FEW IF ANY MORTGAGES ARE BEING ISSUED RIGHT NOW. Never mind and credit available despite us the tax payer bailing out these ****ers.

Toboldlygo

Jannise wrote: »

For those who are saying: try to move the morgage. it is not possible!!! Spoke with 4 lending institutions. they are more than happy to aproove me for a new mortgage, but they are not accepting a transfer. honestly, don't see the difference, as it is the same amount. And i am not in negative equity and have a current valuation. Crazzy

Wise UP!

If Joe Bloggs (your bestest ever mate!) owed 15,000 euro to (say) Anglo Irish, with a dodgy car worth possibly 15,000 as security (or maybe 10,000 / 5,000 / 2,500 euro - if someone is willing to pay any of those prices), would you be willing to give Anglo Irish 15,000 for Joe without any prospect of Joe repaying you?
You agreed to the original mortage, with all the strings attached - so be prepared to pay the price! :cool:

Ozziej

Its going to be tough for all us affected by the hike. Can I suggest for people who would like to talk about it without the childish smug "noone put gun to your head" brigade to move to www.askaboutmoney.com. (I have no affiliation with them BTW).

Your blood pressure will be high enough as it is without the smug lil ****es getting their oar in. They wouldn't be half as smug if it was their kids future being poured down drain in interest payments.

Jannise

To those of you who are saying "no one forced you" - please, just shut up!!!!

My mortgage is only 700 per month (which is 20% below the rent my neighbors next door pay), so i do not really care much about the interest rates going up and just looking for some answers. But out there are people who struggle to bring food to their children, so please stop reminding them, what a bad decision they made. They know that. And they don't come here for that. They just looking for any solution and help they can get.
Please go and slag someone else.

elchanco

Ozziej wrote: »

Its going to be tough for all us affected by the hike. Can I suggest for people who would like to talk about it without the childish smug "noone put gun to your head" brigade to move to www.askaboutmoney.com. (I have no affiliation with them BTW).

Your blood pressure will be high enough as it is without the smug lil ****es getting their oar in. They wouldn't be half as smug if it was their kids future being poured down drain in interest payments.

WELL SAID...

danbohan

Bullseye1 wrote: »

I would say this is alot to do with trackers. The banks have too many of the on their books and the only way they can offset the cost is to **** everyone else.

of course banks are losing money on trackers that was not what was quote referred too

taxpayers are paying through the nose so that the banks can continue subsidizing the loss making trackers , banks should find loopholes so they can make all trackers into variable rates they are supposed to be a business after all

Toboldlygo

Perhaps its time for everyone to recognise and accept personal responsibilities for their actions. There are few people without financial responsibilities and the vast majority just get on with life. So instead of reacting badly to the truth its time to stop whinging!

I was brought up in the sixties in a very working class background in a very rural environment where there wasn't a lot of work. Mum and Dad frequently went without to make sure their nine children were ok. The only holidays we ever had were a week in a caravan in Buncrana and a week in a cottage in Dunlow (sharing with an aunt and her brood of seven).

I have worked hard all my life with 60 hour weeks, despite having had two children and only taking 6 months off on maternity leave for each. I pay a shed load of tax and resent like hell having to pay for the failings in the Irish Banks but I also resent people crying about their situation. I can envisage the complaints about this message and the likely comments about being lucky to have a job....but do you know what? The harder I work the luckier I seem to be. Strange isn't it!:rolleyes:

Kennie1

Toboldlygo wrote: »

Perhaps if there had not been such a outflow of deposits from the Irish Banks over the past few months, by those who are seeking better returns on their deposits,QUOTE]
It wasn't personal deposits that was the problem it was interbank deposits that was the problem, so it isn't fair to say that "interest tarts" caused the run on irish banks it was more like the uncertainty of the deposit guarentee scheme that ended in Sep 2010 to be replaced by the ELS a few weeks later!

ANXIOUS

Ptsb have put there fixed rates up by a minimum of 2% cant remember the exact figures but 7@10yr fixed is approx 9.5%.

Theses arent for customers wanting to switch onto it from variable just people coming to the end of there fixed terms.

irishguy

ANXIOUS wrote: »

Ptsb have put there fixed rates up by a minimum of 2% cant remember the exact figures but 7@10yr fixed is approx 9.5%.

Theses arent for customers wanting to switch onto it from variable just people coming to the end of there fixed terms.

Did they not announce that they were getting rid of the fixed rates and now they just up them, is it so people dont take up the fixed rates?

http://www.rte.ie/news/2011/0210/mortgage-business.html

ANXIOUS

irishguy wrote: »

Did they not announce that they were getting rid of the fixed rates and now they just up them, is it so people dont take up the fixed rates?

http://www.rte.ie/news/2011/0210/mortgage-business.html

No, they haven't announced that they are getting rid of fixed rates altogether. No yet anyway, I don't think they will go that far however the rates when and if they become available will be something similar to what was releashed today.

It's fun how this wasn't leaked but the job losses were :mad:

rainbowtrout

danbohan wrote: »

taxpayers are paying through the nose so that the banks can continue subsidizing the loss making trackers , banks should find loopholes so they can make all trackers into variable rates they are supposed to be a business after all

So the customer who chose to take a tracker should be penalised for choosing an interest rate which is currently working out well for them? How can you justify that?

If banks could just tear up mortgage agreements each time they made a loss on a mortgage then all agreements would be worthless.

ANXIOUS

rainbowtrout wrote: »

So the customer who chose to take a tracker should be penalised for choosing an interest rate which is currently working out well for them? How can you justify that?

If banks could just tear up mortgage agreements each time they made a loss on a mortgage then all agreements would be worthless.

People should bare in mind ptsb aren't in Nama or being bailed out. These measures are designed to keep it that way. If anyone is finding it hard to make the payments they should contact a qfa as soon as posibble.

chris85

ANXIOUS wrote: »

People should bare in mind ptsb aren't in Nama or being bailed out. These measures are designed to keep it that way. If anyone is finding it hard to make the payments they should contact a qfa as soon as posibble.

+ 1

They were not exposed to the market like some other banks.

I see how they need to increase rates in these times but the rates hike is massive. I think this is a sign that variables will see constant hikes over the next few years as we all knew anyway.

bmarley

Do the government have the power to put a stop to these increases? What if they keep rising, this happened in England in early 90's, went to 18 percent if I remember correctly...could that happen here?

blue_steel

Toboldlygo wrote: »

Perhaps its time for everyone to recognise and accept personal responsibilities for their actions. There are few people without financial responsibilities and the vast majority just get on with life. So instead of reacting badly to the truth its time to stop whinging!

I was brought up in the sixties in a very working class background in a very rural environment where there wasn't a lot of work. Mum and Dad frequently went without to make sure their nine children were ok. The only holidays we ever had were a week in a caravan in Buncrana and a week in a cottage in Dunlow (sharing with an aunt and her brood of seven).

I have worked hard all my life with 60 hour weeks, despite having had two children and only taking 6 months off on maternity leave for each. I pay a shed load of tax and resent like hell having to pay for the failings in the Irish Banks but I also resent people crying about their situation. I can envisage the complaints about this message and the likely comments about being lucky to have a job....but do you know what? The harder I work the luckier I seem to be. Strange isn't it!:rolleyes:

Whoop-de-f**king-do. What exactly has that to do with interest rates :rolleyes: ?

Kennie1

ANXIOUS wrote: »

People should bare in mind ptsb aren't in Nama or being bailed out. These measures are designed to keep it that way. If anyone is finding it hard to make the payments they should contact a qfa as soon as posibble.

I am on a tracker myself so not effected by rate hikes as yet,a big fan of the permo because of it has not been bailed out by tax payers, but with all the rate hikes and the fact that the permo is using the ELS I am begining to believe that there should be some type of government intervention here, looking at news this evening and they have upped 5 year fixed rates to over 8% effectively pricing people out of the fixed rate market.

blue_steel

The gloating by some posters here is truely sickening.
I have zero sympathy for buy-to-let mortgage holders: The value of investments may fall as well as rise. But I have every sympathy for people who bought a family home.
PTSB hasn't taken tax-payers money but the state owned banks should be brought to heel and forced to give people with large mortgages a fair interest rate. PTSB customers should then be allowed to switch.
Squeezing the pips out of hard working familys will achieve nothing.