Ulsterbank & First Active won't be passing the rate cut

The Ulsterbank Group (which incorporates First Active) have announced they will not be passing on the latest ECB rate cut to their variable rate customers. They did this with savers rather than borrowers in mind. As readers of this blog will know, I am no fan of either of these lenders as they have tended to offer the least value in the market, that, along with their service of the intermediary channel also puts them in the bottom slot as far as the intermediary industry is concerned.

So a move where they ‘don’t pass on the rate cut’ would seem to be the final nail in the coffin right? Well, not exactly. They are doing so to protect depositors, and it is important that people understand why a bank might do this, and why indeed, its is actually the right thing to do in the present market.

In plain English, the answer is this – the lower rates …

Read More

Ulsterbank & First Active won’t be passing the rate cut

The Ulsterbank Group (which incorporates First Active) have announced they will not be passing on the latest ECB rate cut to their variable rate customers. They did this with savers rather than borrowers in mind. As readers of this blog will know, I am no fan of either of these lenders as they have tended to offer the least value in the market, that, along with their service of the intermediary channel also puts them in the bottom slot as far as the intermediary industry is concerned.

So a move where they ‘don’t pass on the rate cut’ would seem to be the final nail in the coffin right? Well, not exactly. They are doing so to protect depositors, and it is important that people understand why a bank might do this, and why indeed, its is actually the right thing to do in the present market.

In plain English, the answer is this – the lower rates …

Read More