Not all banks pass on rate reduction!

06 March 2009
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Following the Ecb announcement a number of lenders have decided not to pass on the full reduction to variable rate mortgage holders. The mortgage lenders covered by the government guarantee are all passing on the reduction to variable rate holders.

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National Irish Bank has said it won't be passing on the cut to its standard variable rate customers. In January, the bank indicated that it saw little scope to pass on future rate cuts. A range of deposit rates will also not be reduced.

Ulster Bank has decided to pass on only half of the cut to its standard variable rate customers. So while tracker mortgage customers can benefit from the full 0.5% cut, variable rate customers will only see their rates cut by 0.25%. The change will come into effect on April 1.

First Active will also pass on just half of the ECB's rate cut, at 0.25%, to its variable rate customers. Tracker mortgage customers will get the full 0.5%. The changes come into effect April 1.

EBS confirmed that it will decrease its standard variable rate and existing tracker rates by 0.5%. This will bring EBS's standard variable rate to 3.13% (3.2% APR).

Bank of Ireland and the ICS Building Society have said they will pass on the full ECB rate decrease of 0.5% across tracker, standard variable rate and variable LTV-based mortgage products for new and existing owner-occupier homeloan customers.

Permanent TSB has confirmed that it will pass on the full 0.5% rate cut to all variable and tracker home loan customers. The reduction will be effective from Friday, April 3.

KBC Homeloans has confirmed that it will pass on today's rate reduction in full to both its tracker rate homeloan customers and standard variable rate homeloan customers.

Halifax and Bank of Scotland (Ireland) Homeloans will pass on the full 0.5% ECB rate cut to mortgage borrowers. The rate cut will be applied to all variable mortgage rates for new and existing customers, as well as existing tracker customers. The cut will be effective from April 1.

AIB has said the full rate cut will be passed on to all owner-occupier mortgage holders. Holders of tracker mortgages, and any variable rate mortgages will benefit. But no decision has been made yet on the rate for buy-to-let mortgage holders.