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ECB negative interest rates

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  • 05-06-2014 1:37pm
    #1
    Doom
    Banned (with Prison Access) Posts: 2,381 ✭✭✭


    Anyone know how this will effect tracker rates?


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    #2
    Doom
    Banned (with Prison Access) Posts: 2,381 ✭✭✭Doom


    http://m.rte.ie/news/touch//business/2014/0605/621706-ecb-rates-meeting/


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    #3
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    Your tracker mortgage rate will reduce by 0.10%.
    Doom wrote: »
    Anyone know how this will effect tracker rates?


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    #4
    mydiscworld
    Registered Users Posts: 791 ✭✭✭mydiscworld


    The post does say 'Negative' rates. Think the OP means is we drop below 0% what would it do for trackers.

    IMO banks would have to honour it.

    e.g If you have an ECB + 0.6% tracker and the current ECB rate drops to -0.25%, then your mortgage is 0.35%


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    #5
    Trish56
    Registered Users Posts: 1,256 ✭✭✭Trish56


    All the news today confirmed tracker mortgage rates will reduce by 0.10% as the ECB rate reduced to 0.15% from 0.25%.

    mydiscworld wrote: »
    The post does say 'Negative' rates. Think the OP means is we drop below 0% what would it do for trackers.

    IMO banks would have to honour it.

    e.g If you have an ECB + 0.6% tracker and the current ECB rate drops to -0.25%, then your mortgage is 0.35%


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    #6
    the groutch
    Closed Accounts Posts: 16,096 ✭✭✭✭the groutch


    And no doubt banks will increase variable rates to compensate


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    #7
    Soarer
    Registered Users Posts: 8,884 ✭✭✭Soarer


    What would happen if you were ECB + 0.6% and the rate dropped to -1%?


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    #8
    mydiscworld
    Registered Users Posts: 791 ✭✭✭mydiscworld


    Soarer wrote: »
    What would happen if you were ECB + 0.6% and the rate dropped to -1%?

    You pay nil; they pay you nil.

    This has happened with UK martgages where some people had Bank of England rate -x% tracker


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    #9
    dobsdave
    Closed Accounts Posts: 1,814 ✭✭✭dobsdave


    mydiscworld wrote: »
    You pay nil; they pay you nil.

    This has happened with UK martgages where some people had Bank of England rate -x% tracker

    So 0% on loans and savings, I knew it was a good idea not to save all these years. ;)


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