Homeowners lose out as KBC fails to fully pass on ECB cut

I might get hammered for this but personally I’m not convinced the banks should pass on the rate cuts - they’re fucked and they need to generate revenue. I know people who are almost rejoicing in the street because of the low interest rates which just proves to me they have no clue what’s going on -

I know it would be hard to stomach and that’s a major fault of the government - if they just grew some balls and made those people responsible hold their hands up and then fuck off it might be more palitable?

I don’t understand. Austin Hughes said rates were coming down. :confused:

Yeah Austin, what gives? Is everything going to be O.K. now that the panacea has been administered?

Spot on post ‘‘SOC’’

I see your point but am guessing you are not a mortgage holder

Rate cuts are a double whammy to the banks - they get less revenue in from their loans at a time when they need to have smaller assets and higher revenue, but they are also cutting savings rates (i know AIB have cut their great 5% rate to a shoddy 3.75% - soon to be 3.25%). They are not happy with this as people move to northern rock, investec and (if they like a bit more fun in their savings accounts) Anglo.

So they are seeing less revenue and finding it harder to keep their deposit base. Together with high loans that they cannot get rid of, this is the perfect receipe for a zombie bank.

If you’re not paying 5-6% over the life of a mortgage something is seriously wrong…