This is shocking, how can they put rates up now with the financial stresses people are under….shameless, totally & utterly shameless.
"Mortgage rates ‘set to increase’
There is bad news for thousands of homeowners across the country today.
According to reports, Permanent TSB is planning to increase its variable rate.
The hike of ½%, which will be annnounced later this month, will bring its variable rate to 4%.
This is likely to lead to other institutions following suit, according to Karl Deeiter, operations manager with Irish Mortgage Brokers.
"In the past it has tended that one institutional move, and then all of the others follow within a short amount of time," he said.
"I’m not saying that we’ll see everyone else move by the end of January, but certainly by the end of the first quarter of the year I would be surprised if all of the other banks haven’t increased their rates in line with the move Permanent TSB will make."
That’s one of the pitfalls of a standard variable rate…..you are at their mercy. At least on an ECB tracker rate, it only moves when the ECB rate moves, which is why the lenders want people off them as they are losing money on them. They use the eurobor rate to borrow wholesale which did not drop like ECB so in many cases they are paying far more for the funds that they lent on Trackers! If they had a scandal that cost millions they could simply increase the variable to make up for it. They used to be far more reluctant to do this as it had an adverse effect on new business but that’s not something they care too much about in the current climate. This will probably also have an effect on the fixed rates being offered to anyone who wants to fix.
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