We are really pleased to be among the very small and select group of brokers in the country who were asked to be part of the AvantMoney lending panel. If you want a low cost fixed rate from the mortgage arm of AvantCard then you must go through a broker and we’d be happy to help you should you want to work with a firm that has been around for almost 20 years and where every advisor has at least a decade of experience. Call us to find out more 01 6790990
There has been a lot of news about banks not lending to people who are receiving any wage supplements during the covid 19 pandemic. The initial headlines were about AIB who later rowed back on the decision not to assess any cases where people were on wage supports.
The other banks were more open to offering loans but they all have one basic trend in common which is that you can’t be on TWSS and draw down a loan. This may seem unfair but if you got a loan in July and were laid off in August in time a person would wonder ‘why did the bank give that loan?’ given that companies can only get wage supports if their turnover is seriously impacted due to the pandemic. So what can you do?
Delay: for many people they’ll be back to regular wages soon, talk to the people involved in your transaction and see if they are willing to wait. Withdraw: most contracts have ‘subject to mortgage approval’ in them. Ask your employer to take you off the support scheme: …
In an interview that drew a massive listener reaction, Pat Kenny interviewed Karl Deeter about the reasons he believes we need to get people back to work sooner rather than later. We would stress the point that this isn’t implied as doing so in a reckless manner, hand hygiene, distancing and other protocols already being followed in shops and essential services jobs would be required. Dr. Sam McConkey was also on to critique his view. The debate was well rounded and respectful, you can listen to the clip below.
We were part of a discussion around Covid19 and mortgages on Matt Cooper’s ‘The Last Word’ show on Today FM yesterday. The other participant was Brian Hayes of the Banking and Payments Federation of Ireland.
For our part we were impressed with the fact that the banks have been able to do more than 2,000 mortgage restructures per working day since the pandemic driven mortgage breaks were announced. To put that in perspective, it took six years to do 100,000 restructures after the financial crisis. This time around that figure could be achieved in a little over two months, that is something to be commended.
Conor Pope of The Irish Times did an article on housing and quoted our firm extensively, see the screengrabs below.
The Royal Bank of New Zealand (their central bank) is considering the removal of the lending limits – similar to our own – because it’s a countercyclical tool that is no longer needed.
“More recently we have proposed removing mortgage loan-to-value ratio (LVR) restrictions, as this is a countercyclical tool and we have been able to consider lowering this now that the risks of excessive lending have subsided and banks can now lean into a recovery. This should also enable banks to support customer needs”
That spells it out fairly loud and clear, if the tool isn’t needed then why deploy it? At the moment we are seeing massive issues with sales due to banks restricting in order to comply with the lending rules, this is an unforeseen consequence that will damage certain borrowers who have entered into contracts in good faith.
It’s worth noting that we took our lead in part from New Zealand on the lending rules, our new Governor is from there and house prices in New Zealand are also high – …
We were guests on Matt Cooper’s ‘The Last Word’ show on Today FM along with Marian Finnegan the MD of SherryFitzgerald’s residential business to discuss the residential property market and how it might work out in the wake of the covid19 pandemic.
Marian gave good analysis as you’d expect, Karl was pointing out that supply shortages would persist despite any changes that may occur in prices, the reasons for this being that the dynamics that existed prior to it hadn’t changed.
The full clip of the piece is below.
There are ten mortgage lenders in Ireland. AIB, Bank of Ireland, EBS, Finance Ireland, Haven, ICS/Dilosk, KBC, PTsb, Ulster Bank and Credit Unions.
A mortgage broker can help you make an application to all of them except for the EBS who don’t distribute through brokers and Credit Unions who have to be applied to directly and individually.
The main comparison between lenders is their interest rate, but there are many other features of a loan to consider such as the rates that may apply after a fixed rate expires, cash-back and other terms and features that are specific to loans from certain banks.
For instance, some lenders will let you overpay a fixed rate mortgage, others will penalize you if you do that. To find out more get in touch and we can help you figure out what lender is the best for your circumstances.
Some people decide that when the going gets rough, they’ll help those less fortunate than themselves, nothing can be more spiritually reaffirming than this type of attitude.
Denis Reilly (oh ate 6 2744727) started a GoFundMe to help raise money so that kids in Deis schools (Deis schools are usually in deprived areas where you get meals as part of your school day) can still access fresh fruit and vegetables. Within a short amount of time they raised over €100,000 and this will help to feed 5,000 families across Dublin for a month.
So far they have raised €119,000 with a goal of €250,000. They are distributing via Glanmore Foods who already supply non-fresh foods and this takes care of the logistics. This is some good news, worth hearing more of (so far only the indo covered it!)
See more at https://www.goodgrub.ie/
Karl did an interview in late 2012 which at the time drew a lot of negative feedback because Karl Deeter was making the case that house prices were going to start rising and there were too many forces that would push up house prices starting to form. That said, he had given about five years of advice against property investment and this was the time he changed his view.
It’s interesting to listen back on old interviews (in particular from 14 minutes on) and see what predictions were made versus the outcomes. In this case the predictions turned out to be fairly true, 2012 was a low point and prices rose. As with all predictions, you’ll get a lot wrong, Karl made plenty of bad calls too.