EBS likely to increase interest rates

EBS likely to increase interest rates - Richard Curran → sbpost.ie/themarket/ebs-like … 48347.html

All they have to do is raise the SVR to 973% and then they won’t need a capital raise… simples.

EBS and all of the lenders will be increasing their rates - nothing surer

We have to accept this - don’t have to like it, otherwise they will be coming back to Lenny looking for more cash

At least EBS has some kind of morals as a mutual and has always done its best for its customers in terms of paying more for deposits and charging less for loans

Bill - YNWA

But they’re not a mutual anymore are they? They’re now another FF plaything like FÁS. Yeeha! We can now look forward to the SVR being hiked until a month before the next election, when they’ll be slashed. Overall majority here we come!

Of course they will raise their rates, as will all the other banks.

You should be putting aside that increase now or fixing your interest rates now. BTW at least one bank I know will allow you fix your rate even if you are on interest only, (just in case anyone assumed you couldn’t)

Just to remind people of the task in hand …

irishtimes.com/newspaper/breaking/2010/0329/breaking43.html

i rang the EBS on wednesday 7th april as that was my last payment of 3 year fixed at 4.99%, i was told that to fix it another 3 years it would be at 4.05%, but I would lose out on tax relief…then I rang back today to send me the forms, and they said the fixed rate had gone up to 4.7%, now contrary to the papers, they have increased their rates and they are way more expensive than other lenders…how is this possible… When I asked them what about the fixed rate for BOI being advertised, they told me it was alot of nonsense…
Does anyone think the SVR will increase past 4.7%, as it seems that despite noone having the money we had 3 years ago, it doesn’t seem much different to my fixed rate of 4.99%. Maybe the EBS doesn’t want to take the loyalty of their customers into account and also the fact that it is always the ones that pay correctly lose out…surely the tax increases and NAMA are mean’t to offset this…I would be grateful, if anyone could explain this to me…I am worried and confused…

yes, given that we are in the worse recession in 70-80 years,
we are at the BOTTOM of the interest rate cycle, so they can ONLY rise realistically - unless the recession gets worse.

correct, the fixed rate is dependent on the a number of factors, one of which is the cost of insuring against interest rate increases, either through interest rate options/caps/futures/swaps or any other financial derivatives used for hedging interest rate risk. That cost is increasing as the people selling the insurance know that the ECB can’t maintain its expansionary inflation policy for much longer! The rate has NOTHING to do with people having money or not, well certainly not in Ireland, maybe if no-one across the euro area was borrowing, then it might play a part.

Hmm, according to the earlier posts, this policy was loss making up to now, what you’re saying is equivlent to asking why TESCO does not charge the consumer a lower price than what TESCO itself pays the creamery co-ops that sell them the milk. Its not sustainable.

No, NAMA is forcing the banks to accept the writedowns NOW, that means their P+L account is going to be hit bigtime, hence they need to maximize revenue to cushion the losses being forced upon the banks by NAMA - this is one reason why they cannot continue the loss making policy above. Without NAMA, the banks could have written off their revaluation reserves over a number of years like the Japanese banks.

Don’t be, Mary Harafin has already said in January that we have turned the corner 8DD the knowledge economy is going to save us! :angry:

Oonscie, that last bit is sarcasm aimed purely at Mary Hanafin, just in case you were wondering.
As your new to the pin you may not be fully aware of feelings engendered in pinsters by years of watching the slow motion car crash that is the Irish Republic, version 1.

I dont know if it has being discussed on the pin, but When Nama is introduced, banks will start to tighten on those who are not performing…

Hardy could do it when they were looking for the $$$$$$$$$$$$$$$$

Then we might have an alllllllllllllllllllllllllllllllllllll Riot

God forbid that we as a country might wake up then when it is abvious in the fucking face… Too little too fuckign late…

Cant wait for the Cash Bargains in Non Euro.;…

Did i say us citizens are fxxxxxx…

The wheels on the roundabout go around and around, around and around, all the way around…
We are a joke to the rest of the World…greece is a side show for the main event…
dodododododododododododdododododododoodododododododododododdo…ireland is a joke… ireland is a joke…
Time to spread the word about our joke of a country… Perception!!!

i think somebody has a few pints in :smiley:

so after all the Nama bullshit, and getting credit back in to the economy to create millions of jobs in the knowledge economy we find the banks are going to drain the economy dry.

We are some fuckin banana republic

Thanks for the advice…being of little brain, the only thing I can do is price each option and see if peace of mind will cost alot! I do think the SVR will go up…and will do so more rapidly that people think…just what annoyed me was that EBS fixed rate of 4.7% is way higher than anyone elses…and am stuck with them! scorn…
kudos for the sarcasm…but tis our own fault, we kept Bertie’s dream alive! I was one of the people they disenfranchised! B*****ds!

just a further note…in today’s irish times, it clearly states that EBS will not be changing the rates on their fixed mortgages, only the standard variables…sure of course they can, when they already sneakily jumped 0.65% in two days before their announcement…grrr…is this not unethical?

:laughing:
As William Blake would say when faced with such an outburst, ‘someone has cleansed their doors of perception’.

  • “The road of excess leads to the palace of wisdom;
    The tigers of wrath are wiser than the horses of instruction;
    One law for the lion and ox is oppression” *

But Joe Duffy might have a point about the head shops!

Of course it is, but I doubt anyone involved in the decision so much as paused for thought with this question in their mind. They would have been too busy congratulating themselves on the “stroke” that added better “optics” to the press release.

Fix that rate at the 4.7% offered and let this experience be another one of those necessarily painful lessons of which no one is too fond.

Very poor reporting by the Irish Times to not spot the stroke.

Make a complaint to the Financial Ombudsman aswell. This is meat and drink stuff to them - banks saying one thing in a press release and the T&Cs being different on the ground.

Just to be clear, I rang EBS Direct to enquire regarding the status of their Fixed products.

The guy there informed me that [*their rates * (https://www.ebs.ie/site/all/Home%20Loan%20Rates?opendocument) remain the unchanged, (this was for new business).

There is an announcement imminent regarding Fixed Rates, but they will give notice, as per the SVR rate increase, which will apply from May 1st.

I read an article in the last few days that quoted EBS as saying that they did not have a set fixed rate. Each customer could be offered a different fixed rate according to their circumstances. Sorry, no link.