5 tips to improve your credit rating

Your credit rating is crucial when applying for a mortgage or any type of loan. The better your credit rating, the higher the chance you will qualify for a good rate from your lender. Having an average or below average rating can greatly reduce your choice of lender and have an adverse affect on your rate. Here are some tips to make sure your credit rating is as high as possible.

1. Use Credit cards wisely

Using credit cards responsibly on a regular basis is key to boosting your score. Banks may ask you for 12 months of credit card statements, and being behind on your credit payments will decrease your chances of getting a loan. Instead, use your credit card for small amounts, and keep up with your monthly repayments. This shows that you can reliably pay back the money you borrow.

2. Don’t miss loan repayments

Making all your payments on time is the factor that impacts your credit score the most. When you pay your credit cards or other loans on time, it goes on your file …

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Central Bank accused of unjust regulations on credit unions

Credit union chief executives have recently criticized the Central Bank’s regulations on the sector, calling them “excessive and unjustified”. After conducting research, a group of CEOs from credit unions across Ireland, chaired by Queen’s University Belfast professor Donal McKillop, have claimed that under the Central Bank’s current regulations, Irish credit unions are forced to set aside unjustifiably high levels of their capital into reserves, much higher than that of Irish and European banks.

Under the Central Bank’s current rules, credit unions must set aside a minimum of 10 percent of their total assets in reserves. This means that when a credit union member saves €100 with a credit union, the credit union must then put €10 in its reserves, if a member saves €1000, the credit union must put €100 in reserves, and so on. In its research paper, the Credit Union CEO Forum deemed these rates “excessive” and many credit unions have put limits on amount of savings they will accept from members, with some capping savings at just €10,000.

The CEO Forum’s paper states that these reserve capital …

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How you can be approved for a mortgage in Ireland despite Central Bank’s rules

It’s no secret that house prices are continuing to rise in Ireland. Because of this, it is more important now than ever to maximize the amount that you are allowed to borrow. The Central Bank’s rules often do not make this process any easier, as many have criticized the Central Bank on its restrictive rules in terms of how much people are allowed to borrow. To be approved for a mortgage in Ireland, you first have to fall within the Central Bank’s income rules. Second, your lender will evaluate your repayment capacity.

First, the Central Bank restricts lenders to loans of 3.5 times the borrowers’ income (joint and single), unless they are granted an exemption. This means that someone making €40,000 can borrow up to €140,000, and a couple making €100,000 combined can borrow up to €350,000, respectively.  However, to be approved for a mortgage, they must also pass a stress test, per Central Bank rules. This tests the ability of the borrower to repay the loan each month should interest rates rise by 2 percent above what the lender …

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Why Are Banks Not Lending Mortgages?

Getting a mortgage over the recent year has proven to a high hill task; more recently is the COVID-19 pandemic that has affected the world economy in different ways. In Ireland, the mortgage market has been on-demand as properties price has been increasing over a fortnight ago. Research from central banks has shown that many banks have reduced the rate of mortgages despite the high prices of properties, especially in cities and coastal regions of Ireland. The big question that many ask is: why are few or no banks giving out mortgage loans?

Many banks have feared giving out loans because of many reasons about economic stability. Moreover, different types of loans are now more challenging to obtain due to the pandemic’s economic and employment effects, as the mortgage market has been severely harmed. As the prices of properties continue to surge, many banks are opting away from giving out mortgage loans because of the following: –

Economy meltdown or recession. The lockdown demonstrates that Irish banks still have a large number of credits on their books due to …

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Central Bank warns of New Home shortage

House prices have been surging in Ireland lately, and the new home market has been hit especially hard. The rise in house prices has been caused by a number of factors, and significantly accelerated due to the economic strains of the Covid-19 pandemic. Two recent reports from property websites myhome.ie and daft.ie have suggested that home prices are currently inflating at a 13 percent annual rate. Now, the Central Bank has warned that the pandemic will have a significant affect on the housing supply for the foreseeable future. The Central Bank projects that approximately 25,000 fewer new homes will be built between 2020 and 2023 when compared to pre-pandemic projections.

Among the many factors already driving an increase in pricing has been pent up savings. Consumers have had significantly less things to spend money on since March of last year, especially during those times when the country was under level 5 lockdowns-the strictest possible measure. People have not been able to shop at non-essential retail stores, eat or drink at their favorite pubs, or commute to work, leading to a …

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Is switching mortgage providers a good idea in Ireland?

The Central Bank of Ireland claims that switching mortgages saves “significant money,” and that more and more Irish borrowers are cautiously but steadily taking advantage. Thus, consumers with higher mortgage rates have a better chance of saving money by switching their mortgage plans. Customers eventually pay less for loans than switching over time. Switching providers may be intimidating, particularly when it comes to your most significant monthly expense. After that, there is all the paperwork and small printing. There are still significant legal fees associated with transferring. If you’re anything like me, you’re probably put off by the idea of “legal fees,” expecting that they’re usually fabulous and feeling uneasy about the prospect of spending a lot of money without knowing what you’re getting into. It becomes easier to estimate the total cost by looking at the legal charges spent by the mortgage plans in more detail.

An applicant must be hired to manage the processing, papers, and interaction while switching mortgage providers. Fortunately, the solicitor’s charges and work when switching are around half of what it takes to …

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Mortgage arrears in Ireland fall despite pandemic’s economic effects

Over the past year, the covid-19 pandemic has caused many economic challenges for Irish citizens and people worldwide. Between level 5 lockdowns, business closures, and soaring levels of unemployment, it would be logical to believe that people may be falling behind on payments, especially mortgages, which are most people’s largest and most important monthly payment. However, recent data shows that the number of mortgages in arrears actually  decreased during the first quarter of 2021, despite level 5 lockdowns and record high unemployment rates.

Recent data from the Central Bank shows that the number of family home loans in arrears decreased by 2,838 during the first three months of 2021. During this period, the Covid-adjusted unemployment rate hit its peak of 25.1 per cent in early January, as thousands of businesses were forced to close their doors due to level 5 lockdowns. This is surprising given that the number of people behind on their mortgage payments actually decreased, while conventional wisdom would expect to see an increase in arrears. This contrast suggests that government supports, such as pandemic unemployment benefits, have …

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What does it mean if your mortgage is in arrears?

The mortgage on your house or apartment is one of the biggest and most important financial commitments that most people have. If you fall behind on these payments, it could put you in a very difficult  place financially. When you miss mortgage payments, you may fall into what’s known as mortgage arrears. If you fall into arrears, your lender may eventually repossess your home. This is why it’s important to contact your lenders Arrears Support Unit as soon as you fall into arrears, or even pre-arrears. However, repossession is a last resort for your lender, as they generally want you to make all your payments on time. This is why, before they repossess your home, your lender is required to offer a Mortgage Arrears Resolution Process (MARP), per central bank guidelines. Under the MARP, your lender will offer a variety of solutions to help you pay back what you owe, in addition to paying back the amount in arrears in full.

If you enter the MARP, your lender will first conduct an assessment of your financial situation and your ability …

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El Salvador Becomes First Country to make Bitcoin Legal Currency

El Salvador has become the first country to adopt bitcoin as legal tender. Officials in the Salvadoran congress voted in a “supermajority” of 62 out of 84 votes. This fulfills president Nayib Bukele’s promise to make bitcoin legal tender alongside the US dollar. 

 

“The purpose of this law is to regulate bitcoin as unrestricted legal tender with liberating power, unlimited in any transaction, and to any title that public or private natural or legal persons require carrying out,” the law reads. Furthermore, the law enables prices to be shown in bitcoin. Taxes can now be paid in bitcoin, and exchanges in bitcoin are exempt from capital gains tax. The government will also be partnering with digital wallet firm Strike to provide an easy and simple to use financial framework based around the cryptocurrency. Jack Mallers, founder of strike, claims that adopting bitcoin could help countries like El Salvador avoid some of the pitfalls of traditional fiat currency, such as excessive hyperinflation, that developing economies are sometimes prone to. 

 

This decision is unprecedented, as no country has yet …

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 How to Choose the Best Mortgage Lenders in Ireland

Currently, there are 10 mortgage lenders in Ireland. These include Ulster Bank, ParmanentTSB, KBC Bank Ireland, ICS Mortgages, Haven, Finance Ireland, EBS, Bank of Ireland, Avant Money, and Allied Irish Banks. All of these mortgage lenders are financial institutions which give home loans to people who aspire to own a home.

You are probably thinking about how to pick the best of the 10. When choosing the lender that best suits your need, the major factor to take into consideration is the amount of mortgage you want to borrow. Each of the 10 mortgage lenders in Ireland will make an assessment of your assets, debt, and credit score, each differently. You should note that the Loan to Value Ration (LTV) is  the most important pieces of information that the lenders will look. LTV is calculated by dividing the money you are borrowing with the property’s estimated value. With the LTV, the lender will be able to understand the risks involved with lending you the mortgage. Normally, the LTV of a loan is 80 percent or less. It is important to …

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