2016-06-28 mortgage protection savings

Savings of €635 a year to be made in Mortgage Protection

We were mentioned in an article by Charlie Weston writing in the Independent about mortgage protection. The point was raised (figures supplied by the Competition and Consumer Protection Commission) that savings of up to €635 were possible.

The parts mentioning Irish Mortgage Brokers are what follows next: It’s normally done on a “joint life, first event” basis which means that if two people take out the policy and die simultaneously it only pays out once and the sum is usually engineered to cover only the balance of the loan.

It does this because it’s created as a “decreasing-term” policy, which means the amount it pays out decreases over time, the same as your mortgage does as you pay it.

It has a set term, in line with the mortgage term, according to Karl Deeter of Irish Mortgage Brokers.

So if you take out a mortgage for €250,000 over 25 years then this policy should track it fairly closely, so that if the policy holder or holders die the mortgage is cleared.

Typically, it’s the cheapest type of life …

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2016 rent assistance increase

Higher rent supplement, sometimes you just can’t win.

Raising rent supplement is a tricky solution to a housing shortage for a few reasons. Firstly, if you increase purchasing power where there is scarcity it will likely serve to drive up prices generally.

Think about the following scenario, Joe RentSupplement is trying to rent a home that Jim PrivateRenter also wants, what it boils down to is private renters versus publicly funded renters, and in that mix one now has higher purchasing power.

What is the one simple thing the privately funded renter can now do? Raise their price, this is how they outbid the publicly funded renter, Joe  RentSupplement is still out of a place to call home.

What are the solutions? More public housing – but perhaps not with a ‘for the rest of your life‘ tenancy agreement forming the basis of it. The other thing would be to allow increases for tenancies in situ. This last point cannot be overlooked.

Many of the new homeless come from the private rented sector. This occurs when the prices they are asked to pay are beyond their affordability, far …

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2016-06 tsunami of repossessions

Thankfully there isn’t any Tsunami when you consider hard facts

There has been an ongoing commentary about ‘Tsunami’s’ of repossessions that are occurring right now or just about to and we have been part of what we feel is a more realistic interpretation of the facts.

Yes, people have lost their homes and more will, that is always part of the outcome after a massive financial crisis, one of the largest ever, and in a nation that set records for the size and scope of their financial problems.

To think it could be any other way is the same as expecting a health system where nobody ever dies irrespective of the problems they may have. That kind of belief is not rooted in reality.

We think that the correct response is rapid and fair intervention where warranted, and zero protections where properties are abandoned and no payments are being made.

Within this vista there are those who would have you believe the world is being torn asunder and nobody is doing anything about it.

Here are some of the statistics from the courts covering the first quarter of 2016.

New …

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The Last Word on Today FM talk to Irish Mortgage Brokers

The Last Word hosted by Matt Cooper featured Irish Mortgage Brokers and the Independent’s Paul Melia to discuss issues around social housing and indebtedness.

Paul Melia had researched the outcome of 1,700 social houses that were promised last year and found that none of them had been commenced, this is in our opinion the kind of high quality journalism that leads to greater public accountability.

The radio clip beings with a conversation between Matt and Paul where the issues for non-delivery are covered.

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What the Central Bank said about cases in arrears that are in the court system

Below is an email excerpt from the Central Bank on the area of court proceedings. We get frustrated with misinformation about stadiums of people doomed to homelessness and sums up around 20,000 court proceedings being bandied about. They are bad numbers and should be ignored, however, it doesn’t stop people from repeating things that are wrong.

There is also the information (not yet public as far as I know) from the Court Service which indicates the live number of cases in the system at the end of the same period was 12,252 again, nowhere near some of the figures that were being trumped about at the time.

(email below)

> From: CentralBank <*****@centralbank.ie> > Date: ** April 2016 at 15:18:19 GMT+1 > To: ********** > Subject: RE: Clarification of Quarterly Arrears Stats > > Hi *****, Somebody else has just come back to me with a more useful answer for you: The figure for PDH mortgages – at end-December 2015-there were around 13,500 accounts for which court proceedings have been issued (and have not yet concluded). > > …

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2016-05-29 Karl Deeter and Ross Maguire opinion piece

Opportunists preying on fear are the real vultures

This was a joint opinion piece by Karl Deeter of Irish Mortgage Brokers and Ross Maguire of New Beginning. Ross is a Senior Counsel and a highly skilled professional in the area of property rights. The point being raised was that property rights and contractual obligations are very well set out in Irish law.

There are those that would have you believe that a person or company can buy your loan and suddenly turf you out, that simply isn’t the case and is factually incorrect. We refer to people sending out that kind of nonsense as being mandarins in the ‘Ministry of Fear’ and make the point that the facts matter.

The full article can be read here.

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2016-05-29 knock 138k off mortgage

How to knock €138,000 off your mortgage?!

This was an interesting piece by Louise McBride in the Sunday Independent. The assumptions were based on a fairly hefty mortgage figure, but the general idea remains strong, that if you get a lower mortgage rate you can save money.

Our contribution was to say that in an ere of low interest rates and with rates falling that “The banks all know that interest rates are coming down – and that one way to kill the switcher market is to get more people onto fixed rate mortgages,” said Karl Deeter of Irish Mortgage Brokers. “Banks are playing a defensive game. They’re not competing on variable rates – they’re competing on fixed rates instead.”

To us this is simplistic but also true, if banks fear attrition of their performing loan book the best thing you can do is take high variable margin from those willing to pay it, or who aren’t bothered by it (as is common with older loans) or to defend your position by locking in potential switchers seeking value by offering them value in return for commitment …

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2016-05-29 Karl Deeter SBPost third party meddlers

Time to stop third party meddlers from progress prevention

A common theme in the frustrations of life generally is where you have a third party who can disrupt the intentions of another and in turn remain fairly unaffected themselves. This article appeared in the Sunday Business Post on the 29th of May and was on that topic.

(original below)

A system which allows unfair delays to those trying to deliver housing must be scrapped.

Best known for penning The Prince, a Renaissance-era handbook for unscrupulous politicians, Florentine historian Niccolo Machiavelli advised: “Never attempt to win by force what can be won by deception.”

To that end, if there’s one way to annoy a third-party meddler it’s to identify them. It gets their back up.

The ‘deception’ in this respect is the common acceptance of third-party rights. Unconnected third parties should not (and don’t) have the right to intrude on your private life or private moveable property as long as you aren’t breaking the law. But when it comes to immovable or fixed property, we don’t act the same way. We allow anyone to voice their dissent and disrupt a …

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Claire Byrne show, 23rd May 2016

This clip is a good insight into the many facets of the housing debate when looking at the ‘crisis’ end of the spectrum. It raised some interesting issues and commentary. One thing we want to state is that there was an implication that if a fund bought your mortgage that you might be able to get thrown out rapidly, we should state clearly that this simply isn’t the case and is likely a misinterpretation of fact than a stance which is there to deliberately mislead.

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