Rate rise causes concern
An article in today's Irish Independent indicated that ptsb were considering a rate rise of 1%, with the possibility of other lenders following suit.
Clearly we hope ptsb will not introduce an increase of this magnitude, although we have been expecting a rate rise of 1/2%.
It is strange that banks seem to be focusing their attention on existing variable rate customers to cover losses on their tracker mortgage book ,
In our view lenders need to create of a specific loss provision on their tracker mortgage books with appropriate capital injections to cover these losses.
Unless the tracker book losses are addressed the strategy of fleecing variable rate customers will continue.
What options are open to customers faced with rising variable rates?
- Consider switching to a new lender( see Will i qualify for a remortgage?)
- Review fixed rates on offer from your existing lender
- If you can afford it ,pay off some of your mortgage or increase repayments
- Review other household bills, including life insurance and home insurance to ensure you are only paying for what you need (see www.lifeinsurance.ie )
Call us to have a chat about your options.