ptsb increases their SVR on home loans by 0.16%

bdecuc said:

Which in itself would be scandalous!

Not only is there the fear this will be a series of incremental increases but what happens to variables when the ECB rate increases? Another excuse to increase?

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I totally agree! But we are kind of at the mercy of the banks and I am hoping (against hope) that this will not be the start of incremental hikes! If you are in negative equity, you are trapped with a bank and their rates.

I do agree though that there is something that can be done. I was part of a group that lobbied against PTSB when their rates went to 6.15%, and I do feel we made a difference and the bad publicity helped push them to lower their rates. If they creep their rates up again I will be doing the same again.

I just look forward to the day my LTV ratio comes to a level that I can get away from PTSB

Sunny said:

Don't fall for this baloney being peddled by banks. Permanent TSB securitised €500m of mortgages paying 3 mth Euribor + 1.65% 6 months ago. Banks are struggling with margin but that's a legacy issue. PTSB are making a handsome profit on their SVR mortgage book.

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I'm not sure what that has to do with the difficulties banks have in enforcing security where repayments are either not being made in full or are not being made at all.

As things currently stand, a borrower who defaults could conceivably stay in a property for 4 years + without making any repayments. Maybe more. I don't see that risk priced in at 4.5%, and I'm wondering when or if Irish banks and the markets will factor that in.

kaza said:

I totally agree! But we are kind of at the mercy of the banks and I am hoping (against hope) that this will not be the start of incremental hikes! If you are in negative equity, you are trapped with a bank and their rates.

I do agree though that there is something that can be done. I was part of a group that lobbied against PTSB when their rates went to 6.15%, and I do feel we made a difference and the bad publicity helped push them to lower their rates. If they creep their rates up again I will be doing the same again.

I just look forward to the day my LTV ratio comes to a level that I can get away from PTSB

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I wasn't part of it but looking on I did think the group that lobbied that time did bring the issue to attention and helped get the rate reduced.

You feel very vulnerable when you know the rate can be increased (it seems like at a whim!) and you're trapped with no options. There should be some protection given by Government seeing as the normal market isn't functioning!

Likewise if I could leave PTSB behind I absolutely would.

kaza said:

I just look forward to the day my LTV ratio comes to a level that I can get away from PTSB

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I look forward to the day when a foreign bank sets up here and starts cherry picking new business by offering tracker mortgages.

It will happen but probably not for a few years.Have mortgages on trackers but equally have others on variable with PTSB and ICS.

I will be top of the queue.

Knuttell said:

I look forward to the day when a foreign bank sets up here and starts cherry picking new business by offering tracker mortgages.

It will happen but probably not for a few years.Have mortgages on trackers but equally have others on variable with PTSB and ICS.

I will be top of the queue.

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didn't BoS try that? didn't work out too well for them!

One of the reasons that foreign banks will be reluctant to enter the Irish mortgage market is that they see that it takes too long to repossess a property and it is quite costly legally to do this. This is the downside of the repossession problem.
It will be left to the current banking system to do the financing of mortgages for a long time to come.
There will be risk pricing included in your mortgage which will be higher than heretofore taking account of what has happened in the last 6 or 7 years which effectively means dearer mortgages into the future

Déjà vu...
At least more people are paying attention this time around.
But will more people DO anything if the rate continues to rise?

Kine said:

didn't BoS try that? didn't work out too well for them!

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Didn't work out too well for us either,the so called pillar banks couldn't undercut them fast enough in order to get new business..

"Want 110% mortgage?No problem,would you like a brand new car to sit outside your brand new 2 bed apt??Here ya go.How about the wife,wouldn't be the done thing for her to have to continue driving that ould 4 yr old Golf,lash that in as well..

How about a Caribbean holiday,you guys looked like you haven't been abroad in months,stick this 20k holiday loan on the ould mortgage as well.come back and see me in 3 months when your PPR has risen in value by 30% and we will look at getting you a mortgage for an ould investment property 40 miles from the Bulgarian coast so ye can ski in winter"

etc ads nauseuem

bump for admin purposes