The Economy of Czechia

Czechia is an advanced country that ranks among the countries with the most developed economy in the world. Czechia is a member of the OECD (Organisation for Economic Co-operation and Development). It is based on industry and services (60%), agriculture and other primary production.

The main industries are automotive manufacturing, electronics, mechanical engineering, high technology , steel manufacturing, transportation equipment, chemical manufacturing and pharmaceuticals.

The main agricultural products are cereals, vegetable oils and hops. Key mineral resources mined in Czechia include black and brown cleansing, kaolin, building materials and uranium. The most important product of the Czech economy is Škoda Auto.

Czechia has the most self-employment per population in Europe. The average wage as of 2021 is around CZK 37,800 (EUR 1,540). It is among the countries with the lowest proportion of people at risk of income poverty in the EU. Unemployment and state indebtedness in Czechia remain among the lowest in Europe.

In the first quarter of 2015, the Czech economy grew the fastest among the EU states. The Czech economy grew by 3.3% in 2021 and the following …

Read More

Are Irish banks the most generous in Europe?

Mortgage rates are rising, but at the time of writing they are higher in Germany than in Ireland, that isn’t the strange bit though.

What’s really strange is that the risk free rate in Ireland is higher than the mortgage rates available. In other words, financially speaking it is safer (if by ‘safe’ you mean accepting a lower return) to lend to a person in Ireland on a house than it is to lend to the Irish government. This is insane and it won’t last.

The response will need to be one of two things.

Banks stop lending Banks raise mortgage rates (or perhaps a little of 1 and a good dash of 2).

Take a look at government bond yields from last week, if a bank has a choice they can lend to the Irish government at 2.8% but they lend to people at closer to 2%. This is typically seen as an impossibility in financial markets so it will only last for a short time because as a rule there is no arbitrage, markets close them down …

Read More

Fintech is the Future, Here’s Everything You Need to Know

FinTech (Financial Technology) is the new modern technology designed to compete with the traditional financial methods of delivering services.

 

With the increase of importance of technology due to the COVID pandemic, Fintech has evolved and became significantly more important to banks and people alike.

 

With this transition occurring it is important for everyone to understand what these changes mean and how it will continue to evolve in the future. 

 

What’s new

 

With the generations of people who grew up with technology getting older, businesses have had to adapt to please these generations.

 

People have become more and more comfortable managing their money and businesses online. They are eager to use new technology because it offers these businesses and people flexibility that they did not have before.

 

Some of the results of this increase in Fintech is the addition of digital mortgages and digital lenders. This technology was very important for banks because when COVID happened it was the only way to do business.

 

Now people prefer the business to be online because it …

Read More

How to Apply for a Digital Mortgage Online

Gone are the days of doing painstaking research to find the best bank to get a mortgage from. Buying a house or apartment is already difficult, why go through the hassle of loads of paperwork when you can fill out your information online and have it done for you.

Technology has evolved and with it, the digital mortgage process has too. Applying for a digital mortgage takes the stress out of your hands while simultaneously finding the best rates.

Getting Started

Starting the mortgage process can be an overwhelming situation when looking from the beginning. Companies such as OnlineApplication work to make this process fast and easy to use.

The pandemic has shifted much of work to online and gotten rid of the need for face to face interactions. With this new technology why would you do anything on paper?

What is OnlineApplication?

OnlineApplication is a company that works for brokers to find the best mortgage.

Our quick and simple process allows you to upload all your financial information to our safe and secure website. After that we …

Read More

Negative interest rates are both gone and here at the same time.

Many commentators are talking about the end of negative interest rates in nominal terms and it’s true, interest rates are rising but in real terms they are still negative. Look at mortgage rates (for instance), you can borrow at 3% and below and meanwhile you have property price appreciation at 15% meaning that in real terms you are paying -12%.

If you can ever get something on a continuous basis at -12% that indicates ‘buy’, and that’s what people are doing, but notice that we mentioned ‘continuous’, the reality is that there is no arbitrage most of the time and this will be closed down by either rising costs, falling prices or some other outcome that we can’t forsee. Trees don’t grow to the sky, they never have and never will so the trajectory of house prices must rationalise but it’s hard to see how or where at present because the demand side seems so demonstrably strong.

I bumped into Kieran McQuinn on Pearse Street today and in our brief chat mentioned how the price changes are not sustainable, he …

Read More

Avant Money turned 1 year old, and in that time they changed everything.

Avant Money is part of the Bankinter group and they have been in the market for just one year and in that time they have been transformational in terms of what they have achieved in the current landscape.

To begin with they came in and offered the lowest rates we have ever had since the days of tracker mortgages, their fixed rates were also available for longer durations at these low rates than the other leading rates of the day. After that they brought out a suite of fixed rates which were also at the forefront of the market.

As a lender who distributes exclusively through brokers this is wonderful in our view as it drives people towards independent financial advice and greater selection. We can’t wait to see what Avant Money has coming down the line in year two!

Read More

All you Need to Know about a Credit Score in Ireland

 

Having a good knowledge about your credit score and the contents of your credit report is very important since you are able to clearly understand the factors that may impact your score when getting a mortgage to buy a home. With the report, you get an overview of the things you are doing right and the parts you should change so that you can increase your credit score. 

Factors that determine your credit score

Your credit including a mortgage, car loans, store credit cards, and a mortgage affect your credit score. Additionally, the credit that you are using affects your score. In this case too much use of the available credit reduces your credit score. The third factor is late repayment since it stays in the report for a lot of time. Sometimes there can be some error in the credit report but this can be fixed within a day. Therefore, before going to a lender for a mortgage, you need to ensure that the report is up to date. If you discover an error, file a dispute with …

Read More

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 …

Read More

Lockdowns cause surge on home improvement spending in Ireland

The coronavirus pandemic created many unforseen circumstances in people’s daily lives. Perhaps the biggest among these was the effects of the lockdown. People had to stay in their homes for much longer than they normally would, and many people were stuck working at home. It is no surprise, then, that a record number of home improvement projects have been carried out over the last year and a half.

Research by Aviva Insurance Ireland shows that 1.5 million homeowners have carried out work on their homes over the past year, with the total cost of these projects coming in at more than €11 billion. In addition to these numbers, another 861,000 people have plans to undertake home improvement projects, the survey says. The survey captured almost every type of home improvement imaginable, from minor fixes like painting a room or replacing windows, to large projects like building extensions onto homes or adding a home office, the latter of which was definitely popular as the country and the world transitioned to a remote work environment.

Aviva Insurance added that this surge in …

Read More

How to get the lowest rate on your mortgage

When applying for a mortgage, you will notice that rates vary greatly. These rates determine on a number of things, including the length of your mortgage term, the size of your deposit, your credit score, and which lender you choose. With so many different mortgage lenders available to choose from, this can be a daunting process, especially for first time buyers. Securing the lowest rate is incredibly important, as it will make your monthly payments smaller, thus saving you money over the whole lifetime of the loan. Here are a few things to focus on during your application process to ensure you get the lowest rate possible.

Shop Around

You wouldn’t buy a car without driving a few first, or a mattress without laying down on more than one, right? In a similar way, if you want the best mortgage rate, you should shop around with different lenders. This process should entail researching different lenders and the products they have to offer, as every lender has different loan types, terms, and interest rates. You also should apply for more than …

Read More