Protest against Bank Standard Variable Mortgage Rates.

hfallada

NIMAN wrote: »

As someone who is on a SVR mortgage, the thing that I immediately thought about all this current argument and that lady who I saw on PrimeTime (or whatever show it was), was "well when you signed on the dotted line, you agreed to the T&C at that time, tough".

Same goes for myself. I might be paying more than a new customer, but should I be entitled to get their rate? I'd love it of course, but I signed up to a different rate, and my signature says I was happy with it at that time.

Is this just another example of the entitlement culture that seems so ingrained in this country? "They are getting that, and I want it too".

But everyone signing up to a variable mortgage assumed it would at least follow the ECB baseline. Who knew banks were going to screw everyone over and basically set their own rates. The banks are literally ignoring the ECB baseline and doing their own thing. Thats the risk with a variable mortgage versus fixing it.

But banks have basically ignored what a variable mortgage is. The long term result will be, no one in their right mind will go on variable mortgages long term. There is no logic having one, if your bank basically decides it wants to up its interest rate without a solid reason.

Greyian

hfallada wrote: »

But everyone signing up to a variable mortgage assumed it would at least follow the ECB baseline.

That's exactly what a tracker is. If they wanted that, they should have gotten a tracker.

NIMAN

hfallada wrote: »

But everyone signing up to a variable mortgage assumed it would at least follow the ECB baseline. Who knew banks were going to screw everyone over and basically set their own rates. The banks are literally ignoring the ECB baseline and doing their own thing. Thats the risk with a variable mortgage versus fixing it.

But banks have basically ignored what a variable mortgage is. The long term result will be, no one in their right mind will go on variable mortgages long term. There is no logic having one, if your bank basically decides it wants to up its interest rate without a solid reason.

Its a VARIABLE mortgage, it varies. The banks can set whatever rate they want on it I'm afraid.

If you don't want your mortgage to vary, then you need to get a FIXED or TRACKER.

Technically the bank is doing nothing illegal. Morally wrong perhaps, but not illegal.

El chapucero

At present it looks as if the Bank could charge 20% interest and get away with it as the Government appear to want to stand back and do nothing.
The mortgage market is distorted as a result of Government getting involved and taking over the banks and they are now getting these banks ready for selling off- they need to sort this situation out urgently- we need fair competition.

At least a family home should have some stability and protection from this type of money lending practice, particularly by our Government's own bank.

Where are the rest of the 320,000 SVR mortgage holders ?

DulchieLaois

i went to KBC at lunch time to check about their variable rates offer of 3.69% or fixed for 5 years at 3.9%, better doing something than complaining what BOI are ripping me off

Eugene Norman

El chapucero wrote: »

At present it looks as if the Bank could charge 20% interest and get away with it as the Government appear to want to stand back and do nothing.
The mortgage market is distorted as a result of Government getting involved and taking over the banks and they are now getting these banks ready for selling off- they need to sort this situation out urgently- we need fair competition.

At least a family home should have some stability and protection from this type of money lending practice, particularly by our Government's own bank.

Where are the rest of the 320,000 SVR mortgage holders ?

As was said, they are losing money. Not on trackers ( which are contracts anyway) but on arrears. Most countries would repossess. You are paying for the guy down the road not paying, or for the landlord taking rent without paying a mortgage.

DulchieLaois

is KBC bank worth moving to with their low variable rate offer ?

JTMan

DulchieLaois wrote: »

is KBC bank worth moving to with their low variable rate offer ?

Yes, if you have a low LTV. 3.55% with KBC is a best rate out there.

El chapucero

True if you have a low LTV - but on a 2006 mortgage the banks win again : the value of houses dropped but while we have almost 10 years payments made we still probably would not make a good LTV on today's valuations.
Another reason why the system remains screwed up and unfair.

In many cases outside Dublin , after 10 years paying the amount owed is now around the same as the value so the lower LTV variable offers cannot be taken up.

murphaph

Variable rate mortgages are variable. There's nothing to protest about.

NIMAN

I'm afraid protesters will have nothing to argue about, because the banks will be totally covered by the T&C, which the mortgage holder signed up to.

Gerlad

Nothing concrete yet but looks like AIB could be dropping their variable rate in the very near future after David Duffy's appearance at the Oireachtas Finance Committee yesterday.

NIMAN

Rumoured to be a 0.25% cut in June.

JTMan

NIMAN wrote: »

Rumoured to be a 0.25% cut in June.

That would bring AIB to 3.90% APR SVR rate.

BoI charge a whopping 4.50% APR SVR to their existing customers. BoI are the ones that should be under the most pressure for a big cut.

DulchieLaois

when wil BOI reduce their variable rate ?

Chris_5339762

... or KBC for that matter. For existing customers only, not just for new ones. Very tempted to move to AIB at the moment.

JTMan

DulchieLaois wrote: »

when wil BOI reduce their variable rate ?

When pressure gets so great that they are forced too.

The more people switch the more likely rates will drop.

BoI customers are best off switching.

JTMan

Chris_5339762 wrote: »

... or KBC for that matter. For existing customers only, not just for new ones. Very tempted to move to AIB at the moment.

Do it. KBC are not treating their existing SVR customers on a par with new SVR customers. Your best option is to walk.

El chapucero

0.25% is not enough - this just shows how greedy the government owned banks are.

I don't see these banks cutting salaries and bonuses to reduce costs. Then again why would they bother when they have a passive government doing nothing and 320,000 mugs (including me) with SVR mortgages from whom they can freely skim extra profits ?

For what it is worth ,0.25% in June is not going to get my vote in the next election. This is too little, too late. They can start with 1% and backdate this.

We are all Europeans and should have competitive European SVR rates.

dauhee

How can we collectively make our voice heard? The "SVR Mortgages Ireland" page on facebook only has about 500 likes. That's not going to create any momentum.

What I fear will happen is the 0.25% will be cut and nothing else apart from a few message boards with complaints from unhappy/exploited SVR customers . . .

bluesteel

El chapucero wrote: »

We are all Europeans and should have competitive European SVR rates.

we are all Europeans.

However when other Europeans don't pay their mortgage their lose their homes.

You can't have it both ways. There will be no competition in the market until people realise this