Key Post Technical reduction in ECB rate coming into effect on 18th September

We are at the end of our fixed rate with PTSB. We got a letter in August and our options are: fix for 2 years for an extra €142 a month, for 3 years for an extra €66 per month or choose variable for an extra €122 per month. I rang PTSB to ask if in light of the ECB announcement would we get an updated letter. The person I spoke to couldn't confirm if there would be a different rate for the variable. Our deadline is 6th October. Just looking for advice - do we take a chance and go variable or fix (3 years is more favourable for us - money is tight!) Thanks in advance.
 
I think you'd need to post the rates on offer here.
If your financial circumstances mean that you need the predictability of a fixed repayment then, unless the fixed rates are excessive, you probably should fix for an appropriate length of time.
But it's difficult to say for sure with more details of the rates on offer and maybe also your overall financial circumstances.
 
Mgd Var Rte LTV 61-70% - 4.5%
2 Year Fixed Rate - 4.75%
3 Year fixed rate - 3.8%
Green 3 Year fixed - 3.7%
 
FT1579 said:
Mgd Var Rte LTV 61-70% - 4.5%
2 Year Fixed Rate - 4.75%
3 Year fixed rate - 3.8%
Green 3 Year fixed - 3.7%
Click to expand...
Seems obvious so... If your finances mean that you might be under pressure/stress if your repayments aren't predictable and there is little flexibility for dealing with higher repayments then you should consider fixing. You will probably pay a bit more overall compared to a variable rate over the relevant term but that's the price that you pay for predictablity.
 
It's a pity the standard variable rate is so much higher than the 3 year rates. If you look at AIB their variable rate is up to .75% lower than their 3 year fixed rate.
IMO the ECB rates will continue to slowly drop and I would have wanted to wait for these to feed down to the fixed rates but given your choices I would go for Green 3 year if you have the BER)
 
Unfortunately we don't have the BER - maybe after the 3 years fixed we would be in a better position (fingers crossed)! I'm going to pop into my local PTSB branch just to see if I can find out anything more. Thanks
 
Nuttynuts said:
No news I can see this cut .35 % as yet ?
Click to expand...

Who will benefit from ECB interest rates cut?

There is little surprise that the European Central Bank has moved to cut rates by a further 0.25%.
www.rte.ie

Official interest rates

The three official interest rates the ECB sets every six weeks as part of its monetary policy to steer the provision of liquidity to the banking sector.
www.ecb.europa.eu
202418 Sep.3.503.65-3.90
202412 Jun.3.754.25-4.50
Click to expand...
 
Last edited:
Nuttynuts said:
No news I can see this cut .35 % as yet ?
Click to expand...

It was announced, as planned, last week.

Official interest rates

The three official interest rates the ECB sets every six weeks as part of its monetary policy to steer the provision of liquidity to the banking sector.
www.ecb.europa.eu


See note 5:

On 13 March 2024 the ECB announced changes to its operational framework for implementing monetary policy. Effective 18 September 2024, the spread between the rate on the main refinancing operations and the deposit facility rate was reduced to 15 basis points. The rate on the marginal lending facility was also adjusted such that the spread between the rate on the marginal lending facility and the rate on the main refinancing operations remains unchanged at 25 basis points. The main refinancing operations continues to be conducted through fixed-rate tenders with full allotment against broad collateral.


 

“Imitation is the sincerest form of flattery that mediocrity can pay to greatness.”​

― Oscar Wilde
 
ECB main refinancing rate reduced from 3.65% to 3.40% today.

Official interest rates

The three official interest rates the ECB sets every six weeks as part of its monetary policy to steer the provision of liquidity to the banking sector.
www.ecb.europa.eu
 
The newspapers all talk about the base rate against which trackers are financed.
Is it the case trackers are no longer tracked against the refinancing rate.I wonder is the
ECB liquidity move in September whereby the refinancing rate was lowered by an extra 0.35
basis points set up to enable the spread between this rate and the deposit rate
to be narrowed enabling tracker rates to be priced against the cheaper euro deposit
rate which banks I believe are obliged to apply for tracker customers.
 
liz11L said:
The newspapers all talk about the base rate against which trackers are financed.
Is it the case trackers are no longer tracked against the refinancing rate
Click to expand...
Trackers are no longer on offer.
Any existing trackers track the rate stated in the contract.
I think that in most or all cases that's the main refinancing rate.
 
Tracker mortgages in Ireland typically track the ECB main refinancing rate.

It is only recently that the ECB deposit rate became the main policy rate, for reasons that are too complex to explain now.
 
You must log in or register to reply here.
Menu
Log in
Register