July 5, 2012 at 5:23 pm #76562
The European Central Bank has cut it’s interest rate by .25% to a record low of 0.75%. For those on ECB Tracker mortgages, this will result in reductions almost immediately (but depending on how your lender bills and calculates, it could be the August or September debit when you notice the difference).
For those on variable rate mortgages, so far, AIB have said they will not be changing, Ulster Bank will pass on the cut and PTSB will make an announcement in the coming days.
So, for example, if you are on an "ECB + 1.1%" tracker, your new interest rate will be 1.85%. If you are one of the very lucky ones to be on an "ECB + 0.75%" tracker, your new rate is 1.5%.July 5, 2012 at 5:23 pm #14729AnonymousInactive
Its good news but our government is still failing to deal with the mortgage crisis. For example, if someone has a 1,500euro a month mortgage this will mean a decent cut but it does not change the fact they are in negative equity and paying way more than what their house is worth. People are struggling on a level that ECB cuts cannot resolve. The house prices are way way too high in this economy and that is crippling people financially.
Enda Kenny made all sorts of promises about this to get elected and I think they are failing miserably to bring any kinds of proper resolutions.
I heard about a couple whose house was reposessed and they gave back the keys and then they bought it at auction for 79,000, which was about a third of what it was when they first bought it. So they got their house back and a much smaller mortgage, sounds like a win win for everyone
If we could all do that wouldn’t it be great – we would actually be paying for what our houses are worth and not paying these unsustainable, over inflatable mortgages.
Ok, rant over!!!July 5, 2012 at 8:15 pm #76560FabienneMember
good news for some.July 6, 2012 at 11:27 am #123254
Unfortunately Sabbi, it’s not that simple. If their house was repossessed and then sold for much less than the mortgage, there would be a judgement issued against them for the remainder of what they owe. It sounds a bit strange that someone who reached such a difficult point that the only option was to have their home repossessed could then afford €79,000 to buy it back?? They would not have got another mortgage in that circumstance. It would simply mean that they are back in the house and still owe the lender the same amount, so it hasn’t really changed anything. But you are right, while ECB cuts can help some people a little (for some it is academic, their mortgage payment going down by €50 when their income is gone down hundreds of euro!) far more needs to be done. The government allowed banks to lend far more money than they actually had, which is the route of the problem. They allowed prices to rise too fast by having no controls in place to prevent it. Now there are people living in the same houses on the same road where some paid over €300,000 just a short time ago and some have just bought for less than €150,000!July 6, 2012 at 11:33 am #123256JedtMember
I take responsibility for the choices we made and at the time, we budgeted to cope with our mortgage if we fell into a situation where we had only one salary coming in but we did not budget for the economic situation we are in now – its much worse than any of us imagined I think!!
Oh well, all we can do is work hard and try to manage things.
Still think many of the government are idiots though!!July 6, 2012 at 2:11 pm #123260
Agree!! I’ve seen and heard enough evidence from some people on polling day who had not given their choice much thought, simply picked in order of who looked trustworthy in the photos 🙄 Unfortunately, being photogenic does not qualify someone to run a country! On more than one occasion I’ve offered services to government departments and suggested think tanks of people that are dealing with real people’s finances on a regular basis, still waiting on replies! Including my mail of 2002 suggesting adopting a house selling rule (similar to one in France) where if a house was advertised at a price and that price was offered, it had to be accepted, not the gazumping that then went on pushing the prices so ridiculously high! No reply to that one either 😆
I’m seeing some positive signs of recovery but as you pointed out, for many it can’t come quick enough!July 6, 2012 at 6:28 pm #123262Taylor5Member
Sabbi was that not the sister of the couple who bought the house, their was an issue of the family driveway and access to the house, they stopped views at the gate and told them if they buy the house they wont be allowed access the house from their land
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