Mars hiking rates

[CorkHome2022]

Got mail this morning , Mars raising our rate by 0.5% to 6.2% .
I will only be costing us about 7 euro a month as our mortgage is nearly done but others out there will lose any gains from the budget .

The Vultures have been keeping their heads down but as ECB is going back up then the will gouge again.
Their funding cost excuse is not viable as they bought the loans at discounts .

 

[skrooge]

Their funding cost excuse is not viable as they bought the loans at discounts

Purchased at a discount from what the banks valued them at, which itself may or may not have had a grounding in reality.

Regardless, there is no guarantee that the discount applied captured all eventualities. It's possible the loan book valuation might have fallen further.

For example, the likes of the following would undermine the expected future income stream which would be used to value the loan

https://www.askaboutmoney.com/threads/homeowner-with-a-loan-to-value-of-50-gets-a-pia-with-a-0-5-interest-rate-fixed-for-18-years.244635/