MyHome.ie Blog
  • MyHome Living
  • News
  • RetroFit Hub
  • Buyers Advice Hub
  • Selling
  • Renting
  • Mortgages
  • Property Report
MyHome.ie Blog
  • MyHome Living
  • News
  • RetroFit Hub
  • Buyers Advice Hub
  • Selling
  • Renting
    • Mortgage Learning Center
    • Calculators
    • Best Mortgage Table
  • Property Report
    • All Properties
    • Houses For Sale
    • Apartments For Sale
    • Available To View
    • Overseas Holiday Homes
      • Properties For Auction
      • Upcoming Auctions
      • BER Assessors
      • Property Conveyancing Solicitors
      • Pre-Purchase Surveyors
    • Find Agents
    • All Properties
    • Houses To Rent
    • Apartments To Rent
    • Available To View
    • Share
      • Irish Holiday Homes
      • Overseas Holiday Homes
  • New Homes
    • For Sale
    • To Rent
    • Auction
      • Residential Land
      • Commercial Land
      • Farm Land
      • Farms
      • Sites
    • MyHome Living
    • Buyer Advice Hub
    • Property Report
    • Property Price Register
    • Price Changes
  • Mortgages
    • Rental
    • Holiday Homes
    • Commercial
    • Sharing
Advertisement
  • Home
  • Uncategorized
  • The mortgage divide, is it right?
Uncategorized
Jul 6, 2012 - 10:38

The mortgage divide, is it right?

The MyHome Newsdesk
By The MyHome Newsdesk
Share this article
Facebook Share Twitter Share Linkedin Share Email Share Whatsapp Share
The mortgage divide, is it right?

Yesterday’s ECB rate cut of 0.25% will be welcome news to many mortgage holders but for a large proportion, they will never benefit from it.

Tracker mortgage holders will automatically benefit from the new 0.75% rate but the cut is unlikely to be passed on to the vast majority of variable mortgage rate customers.

The rate cut equates to an average saving of €15 a month per €100,000 borrowed.

However, as of right now Ulster Bank are the only lender who have said they will be passing on the cut to customers and you could be forgiven for thinking that that decision was made largely to gain some positive publicity given their recent difficulties.

Advertisement

AIB and EBS have already said they will not be passing it on while Permanent TSB, KBC Bank and Bank of Ireland’s silence on the matter means that it is unlikely they will follow Ulster Bank’s lead. (EDIT: On Friday afternoon Permanent TSB announced plans to cut their variable rate by 0.35%)

The unrest at the various banks’ decision not to pass on the cut to mortgage holders is likely to grow in the coming months with another cut of 0.25% expected soon.

The gap between what tracker and variable mortgage holders are paying is growing steadily and the big question is, is it fair?

According to today’s Irish Independent, the difference between what a tracker mortgage holder and a variable mortgage holder is currently paying is now more than €320 a month.

There are an estimated 400,000 tracker mortgage holders in Ireland, with 250,000 on variable rates.

Advertisement

There have been calls from opposition TDs for the government to intervene in the matter and perhaps now is time they did. We all know that banks are losing large amounts on trackers but is it right that variable rate mortgage holders should have to foot the bill for that?

After all, they are effectively paying for the same thing and not passing on the various cuts only defeats the purpose of what the European Central Bank is trying to do – stimulate the Eurozone economy. It is also not helping those who are struggling with arrears and for whom every cent counts.

Yesterday’s rate cut means tracker mortgage holders are now paying a rate of 1.75% but the average variable rate now stands at over double that amount at 4.2%.

That equates to variable mortgage rate customers repaying €3,840 more on a €250,000 mortgage than their neighbour who is on a tracker.

We’d love to know your opinion on the matter. Let us know your view by voting in our poll and having your say in our comments section.

[poll id="67"]

[poll id="68"]

[poll id="69"]

Subscribe to our weekly MyHome Living eZine today

Processing your request...

You are subscribed now!

<

  • Tags
  • AIB
  • Bank of Ireland
  • customers
  • EBS
  • ECB
  • economy
  • European Central Bank
  • Friday Feedback
  • KBC Bank
  • mortgage
  • MyHome
  • MyHome.ie
  • Permanent TSB
  • rate cut
  • tracker
  • tracker mortgage
  • Ulster Bank
  • variable
The MyHome Newsdesk
By The MyHome Newsdesk
Share this article
Facebook Share Twitter Share Linkedin Share Email Share Whatsapp Share

Helpful Links

Find your home on MyHome
Read more Articles
Calculate what you can afford to borrow
Welcome to the Retrofit Hub
Advertisement
Advertisement

Related News

What is a Heat Pump?
Uncategorized

What is a Heat Pump?

Feb 27, 2025
Living Cities Initiative
Uncategorized

Living Cities Initiative

Jan 14, 2025
Digital Services Act
Uncategorized

Digital Services Act

Mar 31, 2024
Avant Money and Finance Ireland announce new rates
Uncategorized

Avant Money and Finance Ireland announce new rates

Dec 09, 2021
Average deposit of first-time buyer was €52,000 in first half of the year
Uncategorized

Average deposit of first-time buyer was €52,000 in first half of the year

Dec 07, 2021
Frequent And Popular Searches
MyHome.ie Blog
Help
Jobs
About
Equality Guidelines
Brand Safety
Contact
Terms & Conditions
Cookie Policy
Privacy Policy
Digital Services Act
Sitemap
© Copyright MyHome.ie 2025
Advertisement