RTE Drivetime: Discussing Home Choice Loan, 25th August 2016.

On the 25th of August we were featured on RTE’s ‘Drivetime’ with Mary Wilson to discuss Home Choice Loan which is a state run mortgage lender. The state lender has only done 21 loans to date or about 3 loans a year.

There are many reasons that HomeChoiceLoan should be popular but in practice they are not lending and there are many questions about the validity and use the scheme has.

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Newstalk: Breakfast show speaks to Irish Mortgage Brokers

We were pleased to feature on Newstalk’s ‘Breakfast Show’ this week, to our surprise we became an association! To clarify, that was just a title oversight by the presenter, we are still our plain old regular selves working as brokers.

The piece was questioning the validity or need for first time buyer type grants and what it could mean for both buyers and the industry.

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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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Newstalk: Talking Point on housing, Saturday 9th April 2016

This week on Talking Point the host Sarah Carey did a great job of examining housing issues with the panel of guests which in studio included Lorcan Sirr of DIT, Dermot Lacey a Labour Party Councillor and Karl Deeter of Irish Mortgage Brokers.

Many relevant points were made about tenure, about supply constraints and solutions as well as discussions about things that don’t often make the press – such as permanent tenures and the like. It is well worth listening back on given the breadth and expert insight of the show.

 

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Irish Independent: Quote Irish Mortgage Brokers on Central Bank limits

Mark Keenan quoted Irish Mortgage Brokers on the topic of how the Central Bank regulations were affecting prospective property buyers.

Meanwhile, Karl Deeter of Irish Mortgage Brokers described Mr Frisell’s comment as “effectively engaged in social engineering”.

“If they know that shifting people from ownership and into rental is the outcome of their policy, and they keep on doing it, then we have to assume that this is the outcome they have been pursuing,” he said.

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Sunday Independent: Irish Mortgage Brokers mentioned in housing article

We were happy to see that our concern about social engineering was mentioned in an article in the Sunday Independent by Brendan O’Connor, the quote is below.

Or does the Central Bank think it’s desirable? And why has the Central Bank taken it upon itself to decide that Irish people should move to renting property rather than buying their own house? Mortgage broker Karl Deeter has suggested the Central Bank is indulging in social engineering. What other shifts in how we live would the Central Bank like to introduce you wonder. Perhaps a one-child policy?

The issue of social engineering was first raised by us in the consultation process when it began in 2014, specifically we said this was a concern in the following two quotes taken from our submission:

This policy will ensure that many people fall prey to a policy that in protecting banks hurts their future wealth. We are, and will remain, strongly opposed to measures that have societal engineering outcomes such as this.

And later we also said that

For people who don’t have rich parents …

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Rising rents will be followed by higher prices.

The lesser discussed problem of rising rents will be the rising prices of the next few years, we see it as a foregone conclusion that price pressure will be upwards as long as rents are rising.

This occurs for several reasons, first is that higher rents compel renters into the purchasing space, those that can move must have sufficient savings and earnings to do so, but equally, those that can afford high rents – and to escape them via a purchase, are exactly the ones who will make that choice.

There is a tricky relationship between rents and prices, but as can be seen from the chart showing the last 25yrs there is some correlation.

What we can see is that often when rents are rising that prices then catch up, at times rents can even be falling and prices still go up – this is perhaps due to the delayed nature of the commitment to a property contract which can be long drawn out.

What you don’t see for long in that chart is rents rising …

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Sunday Independent quote Irish Mortgage Brokers

The Sunday Independent mentioned Irish Mortgage Brokers in their article yesterday. We were making the point that being ‘middle class’ today means less than it did in the past when it comes to housing.

Karl Deeter, of Irish Mortgage Brokers, argues that today’s middle-class lack the conventional trappings of previous generations.

“Many have been badly hit with negative equity property, others are unable to save the 20pc deposit that the Central Bank demands. Their cost of living is very high, their wages haven’t improved in real terms. They’re facing huge rent hikes. They pay an awful lot of tax.

“And yet the Government thinks they will have somehow been able to save for a 20pc deposit [to buy a home]. Where do they think the money is coming from? They’re the group that have been hit hardest. They can’t rely on State help like those below them can, and they can’t avail of the sort of tax arrangements that the elites can. They’ve borne the brunt of the recession and they’re bearing the brunt of this so-called recovery.”

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Paying off a mortgage early, how to do it according to the experts.

This is a video about paying off a mortgage early. This is generally a good idea, being debt free is a great landmark in a persons financial journey. The other thing that we often forget to focus on is that overpayments are a brand of ‘savings’, if we thought about this more than consumption there would be more personal wealth staying with people rather than their creditors!

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