We were asked to take part in an interview on Primetime about house prices and whether or not they were starting to show signs of falling. Our view is that they will fall in time (probably in a damaging way) but that it won’t be soon because supply is still above demand and price indicators like rents are still rising. This is damaging for first time buyers and those stuck paying high rents.
We have been working for quite some time on creating an online mortgage process. The first time we did this was about 12 years ago but that was too far ahead of its time and the banks basically laughed at us. That has changed and now in 2019 we hope to make the proposition of an online mortgage process a reality, we’ll make it possible for people to do most of the process over their phone in an easy to use mobile environment. Stay tuned and we’ll let you know when this choice becomes available!
Problems have been arising with mortgage interest rates in Ireland for quite some time now. As there has been a worsened housing market and much conflict has arisen from it, the uncertainty of many different aspects have come to arise.
Many banks have had to make competitive advances in the market just to stay relative and appealing to their customers. The housing market has simply become a game in Ireland.
Without constant changing rates, their appeal would diminish, in turn, causing a fall in their overall customer base. A rapid decline in business would quickly be seen.
Most recently, Ulster Bank announced more drastic cuts to their interest rates that would, in turn, also affect their fixed rate mortgage offerings. This was done as a way to stay competitive as many other primary banks for lending have been recently seen as doing similar things.
The Irish housing market is offering customers some of the highest variable rates accessible across the eurozone. Ireland’s average variable rate stands at 3.37% while the rest of the eurozone has an average of just 1.8%. …
Good news is underway for those looking to enter the housing market, but find borrowing rates to be making it too expensive.
There’s a mortgage rate war.
Though this term sounds less than appealing, it is a war in favor of getting lower rates to borrowers and moving more first time buyers into the housing market.
As discussed in a previous posting, Ulster bank recently announced dramatic cuts in their variable and fixed mortgage rates.
The question racking everyone’s brain after such an announcement was, will other banks fall in line to stay competitive in the market?
Ulster caused increased competition in the market and even more so, posed a threat to the other banks.
These other banks were beginning to notice that in order to stay competitive they only had one choice…
To get to Ulster Bank levels or face the result that they may lose all new entrants into the market as well as some of the old.
Shortly after the announcement of Ulster Bank to reduce their mortgage rates, followed KBC …
Recently, Ulster Bank, a major mortgage lending bank, announced a drastic interest rate cut down to a 2.3% fixed rate for two years. Essentially blowing their competitors out of the water.
Against all other players in the market, the Ulster Bank is offering the lowest rate of all.
Ulster’s closest competitors, being the center at Haven Mortgages with a fixed rate set at 2.8%. All other banks showing rates setting at 3% – 3.2%.
The lingering question after this announcement by Ulster is, will we be seeing a shift in other banks to lower their rates as well?
This is an important question for the borrowers as well as the lenders for it impacts the business trend between banks.
If the competing banks believe they need to to stay competitive then it is likely that we will, however, if they have the advantage to keep them ahead of their competitors then they will have no need.
It is hard to say for sure if the other banks will follow in suit and lower their interest rates but that is genuinely …
We were pleased to feature on RTE 6 O’Clock news where John Kilraine spoke to Karl Deeter about the new Government mortgage scheme. Our view is that we broadly welcome it but that it would be far better to get the cost of housing down rather than to make high prices affordable with cheaper credit.
We spoke to Mary Wilson on RTE’s ‘Drivetime’ show about the ESRI Report which stated that property prices would continue to rise for several more years into the future. We know of no significant measure that will reduce the upward momentum of prices at present. In a worrying sense you also don’t see any yield compression – that means that as prices are rising so are yields, this typically indicates a normal relationship with prices and yields (in a bubble yields often drop as the toppy capital prices far outweigh yields).
We spoke to Ciara Kelly about the current property market and where we believe we are in the cycle. She was surprised to hear us say that we believed a crash was virtually an inevitability. There are myriad reason for property cycles and the routes to resolving them are politically unacceptable, for that reason we are confident we won’t avoid experiencing another one.
This is our article that appeared in the Sunday Independent when Karl Deeter was covering a column for Charlie Weston on the 5th of November.
We need to speak to banks in the language they understand, not the language they ‘tell us’ they understand, but the actual language they speak. That language is the language of money.
The ongoing tracker scandal doesn’t cover many of the mortgage holders who lost trackers – many banks took them away from landlords as a part of granting them longer interest-only periods and with some of the biggest institutions these borrowers aren’t covered.
While some may have a hard time feeling pity for landlords, I would remind them that you can’t delight in their financial pain then scratch your head when they jack up rents and squeeze tenants for all they can in order to pay the new higher cost of lending.
Banks are as big a cost to this country as many aspects of public health, we spent more bailing out banks than we did on curing cancer in the last eight years.
The provider of mortgages in Germany is always a banks. You usually use your bank where you already have your account because they can make you a better offer with better conditions. But there are also websites where you can compare different providers.
In order to clarify this question, the “Who is Who” of the real estate financiers in Frankfurt is gathered once a year. Max Herbst, owner of the FMH financial consulting and grand seigneury of the German bankers, lends the FMH Award. For the past 25 years, Herbst has been analysing the conditions for real estate loans and has regularly selected the best suppliers of the year for four years.
A total of 14 members of the Board of Directors and eight directors and department heads had been present, including Wolfgang Müller, the board of BBBank, Michiel Goris, CEO of Interhyp, or Dieter Pfeiffenberger, CEO of BHW Bausparkasse. An award will be awarded to those who, with their Baufi offer in the 50 weeks of last year, had the highest average value of their category. For comparison, Herbst …