National Irish Bank not passing on ECB rate reductions

[Joe1000]

NIB are not passing on rate reducitons on LTV mortgages, current ECB rate is 2.5%, NIB 4.65-4.9%, AIB 3.75%.

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LTV Variable Rate



loan to value ratio > 60%

4.90%​

loan to value ratio < or equal to 60%

4.65%​

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Owner Occupier RatesRateAPR over 20 yearsCost per EUR'000 over 20 yearsStandard Variable3.75%3.81%EUR 5.92

 

[irishlinks]

The banks are under no obligation to pass on ECB rate cuts on variable mortgages. The fact that AIB have passed on cuts so far may be more to do with the fact that they are under more scrutiny and maybe pressure from government since the savings guarantee was introduced.
NIB had the lowest tracker mortgage rates for ages (before all trackers were withdrawn by all lenders) - but their variable rates were never as low as AIB - so they may well have cut them in line with ECB cuts.
Competition is healthy - if they all had the same rates we might get suspicious (it would make things simpler though!)

 

[twofor1]

NIB are now passing on the last .75% reduction to variable rate customers. The notice is in today’s times. From Monday standard variable including investment mortgages are down to 4.15%, LTV mortgages for new business will be 3.9% < 60%, 4.15 > 60%.