"BoI, ICS and AIB to increase SVRs by 0.5% in October"

Brendan Burgess

Founder
Messages
45,750
According to Charlie Weston

Bank of ireland , which is part- owned by the State, will raise its standard-variable and loan-to-value rates for existing customers in October, the Irish Independent has learnt.

The rise of 0.5pc will be imposed on existing residential and buy-to-let customers, and residential and investor borrowers taking out new mortgages.
...
AIB is set to raise its variable rates by 0.5pc also at the start of next month, but its variable rates will still be lower than those of Bank of Ireland and ICS.
 

DerKaiser

Registered User
Messages
1,443
Will this mean that practically all lenders variable rates will have converged into a range of 4% to 4.5%?

The average variable rate would then be ECB + 3.5%.
 

ryaner

Registered User
Messages
409
It seems to be yes. Latest increase will make PTSB cheaper than BOI, something I never thought would happen.
 

Bronte

Registered User
Messages
14,165
Banks need to become profitable and the only way it up for interest rates for those not on trackers. This will push more people over the brink. I guess the people on trackers who are loss makers for banks are being subsidised by regular mortgage holders.
 

shigllgetcha

Registered User
Messages
216
Banks need to become profitable and the only way it up for interest rates for those not on trackers.

Sadly I agree, either mortgage payers make up the loss the banks are making or the tax payer (which is probably close enough to the same thing that it doesnt matter)
 

itsallwrong

Registered User
Messages
327
Squeezing the life out of a minority of the customers is not the answer to returning a badly run bank to profitibilty.
You don't know too many Standard Variable Rate customers do you?
 

Techhead

Registered User
Messages
145
The banks response to an increasing arrears crisis... Increase interest rates...I think discussions are pointless . The banks don't care what we say. Protected by the government who just stonewall people.
 

shigllgetcha

Registered User
Messages
216
People cant talk about debt forgiveness and running to the UK to go bankrupt on one side and still expect interest rates to stay the same on the other. Peope dont want the government to bail out the banks and dont want them to run as businesses either

Squeezing the life out of a minority of the customers is not the answer to returning a badly run bank to profitibilty.
You don't know too many Standard Variable Rate customers do you?

Trackers have a contract, good luck getting more money off them
 

bazermc

Registered User
Messages
788
I got my letter from BOI yesterday confirming my rate is increasing by .5%.

The letter was dated 31st August. That is nearly a month ago!

What are BOI doing with these letters for 23 days!
 
A

AgathaC

Guest
I received my letter from BOI but the revised payment is shown as less than my existing payment. Presume it's bank error and that I will get another letter in due course.
 

Brendan Burgess

Founder
Messages
45,750
I received my letter from BOI but the revised payment is shown as less than my existing payment. Presume it's bank error and that I will get another letter in due course.

That is odd.

Check out what the payment should be using one of the mortgage calculators

Brendan
 

Bronte

Registered User
Messages
14,165
I have confirmed with UB that this is just the passing on of the most recent ECB rate decrease. The letters were sent some time ago.

I only received the letter last week.

As a long term customer what they are telling you about when they were sent and when they were actually sent, well it's a bank. They've in their time managed to send me letters with options after my fixed rate was up, they've also sent me letters with incorrect options. Etc etc etc.
 

AlbacoreA

Registered User
Messages
3,712
Banks won't be happy until people who are managing at the moment will be pushed over the edge. Am listening to the radio now and someone called Snodding???????? not sure of name is saying banks must be returned to profitability & it seems to hell with everyone else.:mad: I'm just about managing now.

Is there any impact to the bank if the numbers defaulting increase, considering the bank guarantee?
 

SallyM

Registered User
Messages
30
I received the letter yesterday, dated 31/8/12, telling me the rate increase is with effect from 24/10/12.
 
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