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ECB rates 0.5% drop - passed on?

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  • 05-06-2003 5:22pm
    #1
    flav0rflav
    Registered Users Posts: 491 ✭✭


    Any news, comments on the old money makers passing on the full rate cut?


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    #2
    mike65
    Closed Accounts Posts: 88,978 ✭✭✭✭mike65


    If your lucky half the cut will be passed on to borrowers, if your unlucky (ie a saver!) all of it will!

    Mike.


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    #3
    Victor
    Registered Users Posts: 78,370 ✭✭✭✭Victor


    I feel sceptical when a call like this comes from a broker. However, rates can't really go much lower.

    Separately this means prices can't go much higher, unless incomes rise (lower interest rates exponentially increase lending).

    http://home.eircom.net/content/irelandcom/breaking/845086?view=Eircomnet
    Mortgage holders advised to lock in rate cut
    From:ireland.com
    Thursday, 5th June, 2003

    The argument for fixing mortgage payments at historically low interest rates was now becoming "compelling", a Dublin-based mortgage broker said today.

    Speaking after today's half-point cut in interest rates by the ECB, Mr Peter Bastable, managing director of Simply Mortgages, said that if mortgage lenders passed on the full rate cut today it would mean typical savings of just under €40 per month for people with a 20-year €150,000 mortgage.

    The European Central Bank cut its key interest rate to an all-time low of in an effort to revive the flagging euro zone economy.

    Mr Bastable has advised that now might be the time for people to lock in the benefits of the current low interest rate environment and remove any threat of rising rates.

    "While further small reductions by the ECB can't be discounted, its hard to deny now that fixed rates — which are as low as 3.79 per cent for three years — are hard to beat," he said.

    For customers not interested in fixing, Mr Bastable recommends that they maintain their payments at current levels — regardless of the decision of their lender to reduce repayments.

    "Forgoing €40 a month now can literally shave thousands of pounds off your interest repayments and years off the life of your loan," he concluded.


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    #4
    daveg
    Registered Users Posts: 4,683 ✭✭✭daveg


    I had a row with my GF about this last night. She says she saw on the news that the TSB (our morgage lender) was passing on the interest rate cut to borrowers. Lets hope so. Me thinks it's time to fix the morgage. Lowest rates seemingly since the WW2 :eek:


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