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Mario Draghi was all smiles at a press conference yesterday. Michael Probst/AP/Press Association Images

Two banks will pass on ECB interest rate cut to mortgage holders

But aside from Permanent TSB and KBC Bank Ireland, what are the other banks doing?

TWO BANKS OPERATING in Ireland have said they will cut mortgage interest rates following the European Central Bank’s surprise decision to reduce the main interest rate by a quarter of a per cent yesterday.

KBC Bank Ireland said that tracker and variable rate mortgage customers will see a decrease of 0.25 per cent in their mortgage repayments from 1 December bringing the variable rate to 4.25 per cent for home loans customers.

Permanent TSB said it would also pass on the cut in its variable and tracker mortgages which will take effect from 21 November. The new variable rate will be 5.44 per cent.

AIB said its rates “are under constant review” and noted that it did not pass on the two previous increases to the main interest rate in April and July of this year. Its variable rate remains at 3.25 per cent.

Bank of Ireland said that “no decision has been taken yet”  but that the interest rates were constantly under review. Its current variable rate ranges from 3.5 per cent to 3.85 per cent.

Ulster Bank said did not plan to adjust its standard rate of 4.95 per cent but was keeping it under “constant review.” Tracker mortgage customers will see a decrease of 0.25 per cent which will come into effect between 16 November and 1 December.

National Irish Bank, which is owned by the Danish bank Danske, said it would also not be adjusting its SVR but would pass on the cut to tracker mortgage customers.

The announcements follow new ECB president Mario Draghi’s surprise move to reduce the main interest rate to 1.25 per cent in his first meeting of the policy-making governing council yesterday.

The move was seen as a measure to calm markets following recent turmoil and an attempt to reduce eurozone inflation which has been above the target rate of 2 per cent for some time now.

The cut is expected to be followed by two further reductions in the main interest rate, which could amount to 0.5 per cent in total, by early next year.

The Irish Small and Medium Enterprise Association called on all lending institutions to pass on the rate reduction.

CEO Mark Fielding said: “It is essential that the reduction is passed on, especially as the banks have been consistently increasing the lending costs to unsuspecting customers over the last number of months.”

Read: Surprise! ECB cuts interest rate to 1.25 per cent >

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23 Comments
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    Mute Colin Treacy
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    Oct 31st 2015, 8:09 AM

    Well done on a fabulous month of prizes. Many more happy years to you all on the Journal.

    62
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    Mute Declan Carr
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    Oct 31st 2015, 8:09 AM

    They were all great prizes, well done .

    38
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    Mute Dan Higgins
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    Oct 31st 2015, 8:05 AM

    Liked and shared hun xoxo

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    Mute noodlez
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    Oct 31st 2015, 8:39 AM

    WOW incredible prize it would be a fantastic way to start 2016

    31
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    Mute catkins407
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    Oct 31st 2015, 9:49 AM

    Well I won natin! I like to think that it’s because I’m one of life’s great winners generally and don’t need fabulous prizes. This is my story and I’m sticking with it ok?

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    Mute Paul Dunne
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    Oct 31st 2015, 8:40 AM

    was on royal Caribbean a couple of weeks ago fantastic stuff altogether.

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    Mute Kathleen Henderson
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    Oct 31st 2015, 8:17 AM

    Take me on A Sunday Holidays Royal Carrabean Cruise….please

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    Mute Brianog2
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    Oct 31st 2015, 8:53 AM

    Happy Halloween everybody.

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    Mute Shane Freeney
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    Oct 31st 2015, 8:42 AM

    Oh yes please !

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    Mute The Viking
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    Oct 31st 2015, 8:26 AM

    Now that would be nice.. !!!!!

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    Mute Suzie Sunshine
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    Oct 31st 2015, 8:20 AM

    for the grand finale I hope one of your regular commenters win ! x

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    Mute Suzie Sunshine
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    Oct 31st 2015, 9:06 AM

    ha ha , I was talking about all regular commenters !

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    Mute Jonathan McKee
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    Oct 31st 2015, 10:31 AM

    great prizes all month and what a way to finish :-)

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    Mute Kevin Halpin
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    Oct 31st 2015, 12:04 PM

    Never once twigged after entering a lot of these competitions that I was sending it to the wrong email address. Where’s that Delorean

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    Mute Little Diddy No
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    Oct 31st 2015, 12:09 PM

    Pick your time carefully if you win – extreme heatwaves hotter than ever in human history on this planet predicted for this area! http://www.theguardian.com/environment/2015/oct/26/extreme-heatwaves-could-push-gulf-climate-beyond-human-endurance-study-shows

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    Mute Jack Mitchell
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    Oct 31st 2015, 12:36 PM

    Amazing price. Good luck too everyone

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    Mute Teresa O'Meara
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    Oct 31st 2015, 7:43 PM

    Entered everyday… I have a feeling I didn’t win anything cos they were waiting to give me this hum dinger of a prize at the end!!!! One can hope!!!!

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    Mute Little Diddy No
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    Oct 31st 2015, 12:07 PM

    Reminds me of this hysterical video of a New Zealand cruise ship caught in a massive storm! https://www.youtube.com/watch?v=Pj9gq6um3FE

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    Mute Anto Curran
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    Oct 31st 2015, 8:37 AM

    *awaits waddlers copy and paste about neo – liberal holiday destinations*

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    Mute Lily
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    Oct 31st 2015, 10:33 AM

    Considering I get really bad motion sickness this would be my worst nightmare, fitting for the day that’s in it.

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    Mute Sandra Turner
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    Oct 31st 2015, 11:14 AM

    Hope you win Hun x

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    Mute Lily
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    Oct 31st 2015, 7:24 PM

    Not in, can’t win. :)

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    Mute Liam Brophy
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    Oct 31st 2015, 10:16 AM

    deadly

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