There’s a certain logic to it. Everyone else is chancing their arm, so you’d be mad not to.
because life, because renting sucks, because rental prices now and when you retire, because of meagre pensions etc etc
I think the point was why would a foreign bank open in Dublin.
A year later, IT presents the same figures as if they were news but leaves the real story to the end:
irishtimes.com/business/fin … -1.3779279
So, never mind what the contract says, give them (back) their trackers. There’s an election coming and the banks have to remember who owns them now. Except that the new entrants who would bring competition back into the mortgage market are getting cold feet because of the “political climate”
irishtimes.com/business/fin … -1.3780827
I started off on an SV and drove my bank into giving me a tracker around the 1.1% level which I then proceeded to lower incrementally over the course of 2005 to 2006, ending up at ECB+0.6%. This was all done by phoning them up and then threatening to leave them for some ECB+0.5% pasture such as Danske in 2006.
I only recall sending one signed piece of paper to them as I transitioned from SVR to Tracker and then onwards downmargin in increments.
The only evidence really was the changes in applicable rates on the annual statement, I finished off the mortgage, with BoI in 2015 and they never tried anything on at any stage, it was ECB+0.6% to the final day.
I would like to take this opportunity to thank BoI for honouring the terms of our final agreement from 2006 on to the bitter end.
Nothing personal, but I hate you and the Irish interest rate f*cking f**%& #&** f***** f.
Given I was stuck with a 5.85% fixed rate until 2013 (an OK’ish rate when I got it, tbh), and on a 4.5% SVR afterwards, I am quite delighted to be on a 2.6% fixed now since last year, at least until 2022.
OTOH, my parents paid around 9% back in the day…
I think your experience is typical for borrowers from BoI/AIB i.e. if you negotiated hard, they matched Danske and if you kept up payments they didn’t mess with you. It was very sloppy, often word of mouth, but I think everyone signed some contract and the most basic condition was “you lose if you stop paying”. Otherwise, it’s not a loan, it’s a gift repayable in 30 years.
So, the banks were reckless in the boom - the Financial Regulator should have banned these trackers which were bound to blow up if (a) the ECB increased rates substantially, or (b) the banks lost unlimited access to the cheapest rate. Instead, the ECB cut rates to zero so the banks are losing money on their trackers and our politicians have ensured that all those who stopped paying their mortgages are now being restored to this zero + near zero rate. With compo , of course. (Those who kept paying like 2Pack had no problem).
Who pays for this? At the moment, Europe’s savers and Irish new borrowers. For how long more?
Exactly, you waited for some muppet to announce a narrower spread and got on the blower and…blew. They rolled every time, sometimes on the first call.
BOSI are to blame for all this, they were the prime peddler of utter shite product in Ireland like 100% IO and Trackers that tracked ECB and not Euribor or Libor. Our regulator went for dinners with them and they poisoned the entire system in end.
Mark Duffy was a lot worse than Seanie ever was, I have long said that on the Pin.
WELL, there are a lot more out there who negotiated a tracker rate somehow and never had any bother than there are people allegedly diddled out of ‘their’ trackers…mainly because they took a fix for a while and never checked whether the fix rolled to track in the feckin contract.
I reckon no more than 10000 were victims of sharp practice in banks and that 300000 never traded a cross word.
Mind you I near shat myself around 2010 at the thought of BoI imploding and me being dragged into a buy in arrangement to rescue the turd. Then Wilbur Ross showed up and I could finally relax again.
We will be down to c.200,000 trackers from a total 650-700,000 mortgages by 2025 by my estimate, they will not become insignificant until after 2030.
I agree about Mark Duffy and BOSI, 2Pack.
Used to be a regular with Marian but kept a low-profile after this car-crash interview with her:
publicinquiry.eu/2009/03/08 … net-duffy/
Somehow, he was not invited to the Oireachtas Banking Inquiry. Would have been interesting to ask him about regulation v. competition in the mortgage market.
independent.ie/business/iri … 21451.html
So, what are the lessons we have learned from our banking crisis?
- Fight groupthink!
- Trackers for everyone!
- Homes are not collateral!
- No more reckless lending! (except for Exchequer borrowing, housing, hospitals, hotels, fibre to the home…)
Another sad case but the tables have turned. Now the banks are apologising and compensating
Anyone interested in some half-price AIB shares?
How long before they start paying people to buy their shares?