Permanent TSB to raise interest rates

[Howitzer]

Re: permanent TSB increase Variable Interest Rates

This is getting ridiculous. I have not heard one logical reason as to why what Permanent TSB did was so wrong.

I've heard it all now. From Joe Duffy - "Everyone default on their mortgages for a month" - completely unchallenged by the presenter.

Did no one in this country read the small print?

 

[samanthajane]

Re: permanent TSB increase Variable Interest Rates

Dont know a whole lot about mortgages, but something got me thinking cause i contacted my bank the other week. I heard someone mention here on another thread that in 2006/2007 a lot of mortgages after the initial fixed period automatically went onto a tracker.

Chanced my arm and phoned the bank last week to see if i was one of these that should of gone onto a tracker.....no such luck. And i enquired was the rate was for fixing, which is now .75% higher than what it was 6 months ago.

But in my contract it say that i went to a variable that was 1.99% above the base rate, for the life of my mortgage, unless i took out another fixed rate or any other product they were offering.

So if PTSB and other banks follow suit by adding .5% isn't this breaking the original contract since the base rate has not risen?

Or in very small print and written so that i'd never understand it anyway even if i did see it, does it say they can change this whenever they want?

 

[Shawady]

Re: permanent TSB increase Variable Interest Rates

Dont know a whole lot about mortgages, but something got me thinking cause i contacted my bank the other week. I heard someone mention here on another thread that in 2006/2007 a lot of mortgages after the initial fixed period automatically went onto a tracker.

Chanced my arm and phoned the bank last week to see if i was one of these that should of gone onto a tracker.....no such luck. And i enquired was the rate was for fixing, which is now .75% higher than what it was 6 months ago.

But in my contract it say that i went to a variable that was 1.99% above the base rate, for the life of my mortgage, unless i took out another fixed rate or any other product they were offering.

So if PTSB and other banks follow suit by adding .5% isn't this breaking the original contract since the base rate has not risen?

Or in very small print and written so that i'd never understand it anyway even if i did see it, does it say they can change this whenever they want?

As far as I am aware this 0.5% increase is only appliciable to variable rate mortgages but not tracker mortgages, but I am open to correction on that.
I imagine a lot of banks are losing money on the attractive tracker mortgages they were offering a couple of years ago. Some of these were as low as .5% above the ECB which is only 1% now. Therefore a repayment rate of 1.5%.

Does anyone know what is the rate banks are paying for loans from other banks?

 

[Shawady]

Re: permanent TSB increase Variable Interest Rates

Samantha, I don't know how the contract works with variable rates but the banks can obviously adjust them without a change in the ECB rate, whereas tracker mortgages are linked to the ECB rate and are only changed when there is a change in this rate.
I assume thats one of the reasons they are adjusting their variable rate mortgages upwards.

 

[benny11]

Why is everyone moaning here you are on a variable rate which can go up and down as it has done historically in the last while. Same people here were laughing at people stuck on fixed rates over the last few months. What comes around goes around i say.

 

[VOR]

Re: permanent TSB increase Variable Interest Rates

Does anyone know what is the rate banks are paying for loans from other banks?

No idea but considering that Ireland is borrowing at the highest rate in the EURO and the banks risk is related to the government's risk of default I am guessing they are paying a pretty penny.

 

[gillarosa]

Re: permanent TSB increase Variable Interest Rates

Challenged by who? On what basis?

On what basis? Its quite simple, they are NOT losing money on the Variable Mortgages but are penalising that Customer base by this increase in order to make up losses elsewhere. They can obtain a lower rate of borrowing because of OUR guarantee for their Bank, they can't do that on their own due to bad practice in the recent past. When this Recession ends in the rest of Europe as anticipated well ahead of Ireland we may then face into successive months of increase after increase at the ECB and we will have no say in it.
I don't have a Variable Mortgage with them but can both empathise with people who do and are being hit with this and realise that it could get the rest of them jumping on the band wagon, I guess thats when many of you may feel its not such a fabulous idea.

 

[SlurrySlump]

Re: permanent TSB increase Variable Interest Rates

Challenged by who? On what basis?

Well they had €8.2 billiion of spare cash to transfer to Anglo Irish Bank to beef up Anglo's accounts. Seems to me that they have plenty of cash.

 

[samanthajane]

Re: permanent TSB increase Variable Interest Rates

I'll have to check my contract when it comes out and look at all the small print and get out my dictionary.

The way the guy in KBC explained it to me that i was on a variable of 1.99% above the base rate for the remainded of my mortgage.

He failed to mention that KBC can change what the base rate is in their eyes as they see fit. So i might be 1.99% above the base rate for the rest of my mortage just their base rate, which can be whatever.

If it goes up then i'll just have to accept it. It's all well and good saying i should of understood the contract before i signed it, but even if they had it in big bold letters i still would of signed cause all contracts are pretty much the same, it's not like another company would of been different, if i didn't sign i wouldn't of got my mortgage.

Better start preparing for the worse!!

 

[Purple]

Re: permanent TSB increase Variable Interest Rates

When this Recession ends in the rest of Europe as anticipated well ahead of Ireland we may then face into successive months of increase after increase at the ECB and we will have no say in it.

I could be wrong but I thought the inter-bank lending rate was what mattered. That's running well ahead of the ECB rate. As the euro-zone comes out of recession the inter-bank rate should drop.

 

[liaconn]

Re: permanent TSB increase Variable Interest Rates

As far as I am aware this 0.5% increase is only appliciable to variable rate mortgages but not tracker mortgages, but I am open to correction on that.

How could they apply it to tracker mortgages. Surely the whole point of these is that they are tracking the ECB rates?

 

[Purple]

Re: permanent TSB increase Variable Interest Rates

How could they apply it to tracker mortgages. Surely the whole point of these is that they are tracking the ECB rates?

There is often a caveat on that in the small print.

 

[Sunny]

Re: permanent TSB increase Variable Interest Rates

On what basis? Its quite simple, they are NOT losing money on the Variable Mortgages but are penalising that Customer base by this increase in order to make up losses elsewhere. They can obtain a lower rate of borrowing because of OUR guarantee for their Bank, they can't do that on their own due to bad practice in the recent past. When this Recession ends in the rest of Europe as anticipated well ahead of Ireland we may then face into successive months of increase after increase at the ECB and we will have no say in it.
I don't have a Variable Mortgage with them but can both empathise with people who do and are being hit with this and realise that it could get the rest of them jumping on the band wagon, I guess thats when many of you may feel its not such a fabulous idea.

Not really because I got a tracker for that very reason. I will either accept the rises or fix my mortgage. A few things. They are losing money on variable mortgages. They offer deposit rates higher than what they charge mortgage holders so that says it all. Secondly, they are paying a fee for the guarantee which hasn't cost the taxpayer a cent. Thirdly, why as I taxpayer should I run the risk of having to bail out TSB by having the guarantee called upon when they announce loss after loss because they can't run the operation as a normal commercial business.

 

[Brendan Burgess]

Does this affect tracker as well as variable mortgages?

No, it does not affect exisitng tracker mortgages. It only affects Standard Variable Rate mortgages. They may raise the tracker rate for new mortgages.

Maybe those on fixed rates, will be glad to be on them.

 

[The_Banker]

Re: permanent TSB increase Variable Interest Rates

Well they had €8.2 billiion of spare cash to transfer to Anglo Irish Bank to beef up Anglo's accounts. Seems to me that they have plenty of cash.

No, it wasn't spare cash. It was customers money.

 

[DerKaiser]

Re: permanent TSB increase Variable Interest Rates

On what basis? Its quite simple, they are NOT losing money on the Variable Mortgages but are penalising that Customer base by this increase in order to make up losses elsewhere. They can obtain a lower rate of borrowing because of OUR guarantee for their Bank, they can't do that on their own due to bad practice in the recent past. When this Recession ends in the rest of Europe as anticipated well ahead of Ireland we may then face into successive months of increase after increase at the ECB and we will have no say in it.
I don't have a Variable Mortgage with them but can both empathise with people who do and are being hit with this and realise that it could get the rest of them jumping on the band wagon, I guess thats when many of you may feel its not such a fabulous idea.

It's the tax payer and not the customer who has propped up the banks. You, as a tax payer without a variable mortgage, are a perfect example of why the banks should be left alone to make profits to pay back tax payers rather than distribute taxes to mortgage holders who are clearly not the same set of people

 

[Raskolnikov]

Re: permanent TSB increase Variable Interest Rates

I love the logic here.

"I bailed out the banks, therefore I should get a cheaper mortgage".

I don't have a mortgage, but my taxes have also bailed out the bank. You don't hear me complaining about not getting any sweetheart deals.

 

[blaze1]

hello Guys....chill with all the radio and media attention I do not think this will go ahead at all... I am also a ptsb customers and with all that i have heard today it's unlikely to happen!!

so I'm not going to stess I think it will be ok!!

we will see!!

 

[Mixednuts]

A few very simple questions to ask yourself before making a judgement ?

a.) Are PTSB making money before this increase ?

b) Is this a unbalanced increase on variable customers to make back some loss on their tracker mortgage product ?

c) Is it a good thing , if PTSB make more money then the bail out and shares the Goverment now have are worth more hence the Tax payer wins ?

d) Is this just bad timing ? , if u have no job in the current recession will this really sting ?

e)If this increase is to fill the gap between the Inter Bank lending rate and the customers lending rate then will PTSB give back a .05% increase when they difference is in the black and not the red when rates change again ?

 

[Slanebuddy]

I don't understand how some people want to see the government intervene on behalf of the tax payer for this when it didn't intervene in the case of high exit fees for fixed rate mortgage holders. I know this is a different subject entirely but government intervention is government intervention......I saw so many posts here in reply to people stating how worried they were because they were locked in fixed rate mortgages and people were replying to them saying that they shouldn't have got into the fixed rate mortgage if they couldn't afford it and that they shouldn't try to guess how the market is going to go etc etc.......just seems very hypocritical to me. (I'm on a variable rate by the way)

Even though TSB are increasing because of profit (or loss in their case) this is still linked to the market so why are people looking for government intervention. I'm not taking up for the banks God knows we're paying enough to keep them going now but fair is fair.