PTSB haven't passed on the last interest rate cut on my commercial mortgage?

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Yellow Belly

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We have a commercial mortgage with PTSB since 2002. The rate had increased (in line with the market) to 6.56% over the past few years.

We expected that with the ECB reduction by 0.5% recently that our repayments would reduce- just checked the bank statments & found that this months repayments are as usual.

Has anyone else had similar experience? Am I expecting too much too quickly that they would have reduced the rate within the month?
 
look at your loan offer, mine states '1 calender month from the effective date of the ecb rate change'. The effective date of the last ecb rate cut was 15th of October (announced Oct 6)
 
"We are pleased to announce that all of our existing variable and tracker mortgage customers will benefit by the full 0.5% ECB rate reduction. The reduced rates will be effective from the first week in November."

FROM PTSB website
 
just to let you know that im with bank of scotland and the last rate cut of 0.5% will not be noticed in my repayments until the december repayment.

so im guessing todays rate cut will not be noticed until Feb 2009
 
sulo said:
"We are pleased to announce that all of our existing variable and tracker mortgage customers will benefit by the full 0.5% ECB rate reduction. The reduced rates will be effective from the first week in November."

FROM PTSB website
Click to expand...

PTSB are a joke, my mortgage went out yesterday. Im on a tracker. I have been advised if anyone is on a Tracker mortgage their bank are LEGALLY oblidged to pass on the ECB rate straight away. Also my so called bank sent me a letter advsing me that my mortgage broker can keep us in touch of the great offers they have in the PTSB bank. If my bank did their homework did would realise that my mortgage broker Rea went out of business 6 weeks ago!!

So when does the next rate come to bare for tracker mortgages?
 
Yellow Belly said:
We have a commercial mortgage with PTSB since 2002. The rate had increased (in line with the market) to 6.56% over the past few years.

We expected that with the ECB reduction by 0.5% recently that our repayments would reduce- just checked the bank statments & found that this months repayments are as usual.

Has anyone else had similar experience? Am I expecting too much too quickly that they would have reduced the rate within the month?
Click to expand...


Commercial loans are more often funded on a Euribor basis... check you loan offer letter for the INterest rate basis... if this is the case... you will be unlikely to see a reduction of 0.5% or 1% in coming months... If your Commercial loan rate is an ECB + Margin rate.. you should see a decrease in payments soon..
If you are on a SVR Commercial rate... it can be at the Banks Discretion to pass it on... at the moment they will be unlikely to do so... becasue the Euribor has not fallen significantly..
 
keeptabs said:
Commercial loans are more often funded on a Euribor basis... check you loan offer letter for the INterest rate basis... if this is the case... you will be unlikely to see a reduction of 0.5% or 1% in coming months... If your Commercial loan rate is an ECB + Margin rate.. you should see a decrease in payments soon..
If you are on a SVR Commercial rate... it can be at the Banks Discretion to pass it on... at the moment they will be unlikely to do so... becasue the Euribor has not fallen significantly..
Click to expand...

Hi,

I am new to this, could you brief me about "Euribor" please...

Thanks a lot in advance...
 
bobbykorey said:
Hi,

I am new to this, could you brief me about "Euribor" please...

Thanks a lot in advance...
Click to expand...

EURIBOR is the European inter bank overnight lending rate... effectively the rate at which banks lend to each other... as market activity in Interbank lending has all but stopped in recent months... the price of this type of lending has increased.. or at least is has not fallen in line with ECB rate cuts... which is why you can get 6.0% on deposit for a year... when ECB rate is 3.25%... the Banks are desperate to get access to savers funds to help reduce the need to borrow from each other... just as you may be afraid to invest in Bank X or Bank Y ... so are the other Banks afraid who who is safe and secure to lend to ...
In short the Banks (mostly ) fund there cash flow and Lending from the 3 month EURIBOR ... not from the ECB itself...
you may get a better explanation on Google... but thats my understanding of it..
 
Commercial loans are more often funded on a Euribor basis... check you loan offer letter for the INterest rate basis... if this is the case... you will be unlikely to see a reduction of 0.5% or 1% in coming months...
Click to expand...
This is wrong as banks in recent times are putting commercial loans on 3 months euribor. This means that in essence it could take up to 3 months for the rate cut to be passed on. But they will be passed on!
But it works the same way when rates go up. It could take 3 months for your repayments to increase. Same with 1 month euribor which has been used less frequently by banks in recent years.
 
You can find the Euribor rates on www.fxcentre.com previous posts are correct, commercial mortgages are ususally set at around 1-2% over this rate. Euribor has been dropping over the last few months so you should see some benefit.
 
I have commercial loans on 3 months euribor with the ACC and , in fairness , they have passed on the reductions to the Euribor rate but it did take the 3 months before I saw the savings kick in ....the euribor rate has been reducing by roughly .15 % per week over the last few months so the reductions on loans/mortgages are substantial at the minute.
 
buttonmoon79 said:
PTSB are a joke, my mortgage went out yesterday. Im on a tracker. I have been advised if anyone is on a Tracker mortgage their bank are LEGALLY oblidged to pass on the ECB rate straight away. Also my so called bank sent me a letter advsing me that my mortgage broker can keep us in touch of the great offers they have in the PTSB bank. If my bank did their homework did would realise that my mortgage broker Rea went out of business 6 weeks ago!!

So when does the next rate come to bare for tracker mortgages?
Click to expand...

If you are on a tracker, PTSB will pass you the rate change, read the term and conditions of your loan and you will also find out when the billing change will happen.
 
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