Newstalk Breakfast interview Irish Mortgage Brokers

We were pleased to be part of an interview by Newstalk featuring Karl Deeter of Irish Mortgage Brokers and Ross Maguire (SC) of New Beginnings.

The conversation was around the newly published Competition & Consumer Protection Commission (CCPC) consultation on the Irish Mortgage Market.

Our general view (tl;dr) is that competition alone cannot explain the issues inherent in the Irish mortgage market, that there are many other forces at play.

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The state can’t help you get a write-down (if you need a mortgage)

We had an interesting call today because a prospective client wanted to know about Home Choice Loan which is a state sponsored lender.

Her situation was interesting, she is in the process of negotiating a write-down from Tanager via the servicing agent Lapithus and wanted to know if there was any lender out there that might do the deal.

According to the Home Choice Loan website (and a fair critique is that they have done very little in the way of lending to anybody) they are there for first time buyers but ‘some exceptions may apply’. When queried we were told they wouldn’t consider a case for a refinance away from another lender.

What if that involves a good write-down? Currently no lender is willing to finance a deal like this so only people with access to cash can get the deal done, but in a world of low yields if the state was to consider loans like this and do them at their published rate of 3.25% then the nation could make a return on the money …

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Irish Times mentions Irish Mortgage Brokers: Why is there a housing shortage?

We were featured in today’s Irish Times on an article by Barry McCall asking ‘why do we have housing shortages’.

Our contribution is as follows: Karl Deeter of Irish Mortgage Brokers believes this is part of a global trend. “The mega-trend is that we are now living in a low-yield world,” he says. “Central banks are being forced to play both sides of the same table. Low interest rates cause asset prices to rise and the Central Bank is curtailing credit to prevent asset price rises. But there is an upward pressure on house prices despite this and it has been compounded by the earlier economic collapse which has led to supply disruption. These are trends that are bigger than any of us.”

While the Central Bank rules are undoubtedly playing a part in the problem, Deeter sees supply as equally, if not more, important and one factor here is planning laws. “Ireland has a particular problem when it comes to third-party property rights,” he argues. “Planning applications for housing developments are being turned down in areas where …

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Newstalk: Pat Kenny show features Irish Mortgage Brokers

The Pat Kenny Show on Newstalk had Karl Deeter in studio to discuss the property market today. We tried to make the point that there are several issues in the market making a tricky situation even harder to navigate, but that double sided approaches by the Central Bank (loose monetary policy and low interest rates) are helping to drive prices up while other rules are attempting to restrict credit.

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2016 Mortgage lending rules submission by Irish Mortgage Brokers

We sent our research and thoughts on the lending rules to the Central Bank as part of their industry consultation process regarding the existing mortgage lending rules.

While we are critical of them in particular for first time buyers, we haven’t had an issue on other aspects of it (such as controls for investors). The submission argues with supporting evidence for 90% loans for first time buyers to be available generally but to keep other controls generally in place, or to do nothing at all and give the adjustments more time to bed in.

Submission is here: 2016 Central Bank macroprudential rules submission Irish Mortgage Brokers

The findings of a survey carried out by Behavior and Attitudes of clients of Irish Mortgage Brokers, DNG and Hooke & MacDonald which was mentioned in the press is also available here: 2016 MacroPrudential review – survey findings

 

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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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Savings of €635 a year to be made in Mortgage Protection

We were mentioned in an article by Charlie Weston writing in the Independent about mortgage protection. The point was raised (figures supplied by the Competition and Consumer Protection Commission) that savings of up to €635 were possible.

The parts mentioning Irish Mortgage Brokers are what follows next: It’s normally done on a “joint life, first event” basis which means that if two people take out the policy and die simultaneously it only pays out once and the sum is usually engineered to cover only the balance of the loan.

It does this because it’s created as a “decreasing-term” policy, which means the amount it pays out decreases over time, the same as your mortgage does as you pay it.

It has a set term, in line with the mortgage term, according to Karl Deeter of Irish Mortgage Brokers.

So if you take out a mortgage for €250,000 over 25 years then this policy should track it fairly closely, so that if the policy holder or holders die the mortgage is cleared.

Typically, it’s the cheapest type of life …

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Thankfully there isn’t any Tsunami when you consider hard facts

There has been an ongoing commentary about ‘Tsunami’s’ of repossessions that are occurring right now or just about to and we have been part of what we feel is a more realistic interpretation of the facts.

Yes, people have lost their homes and more will, that is always part of the outcome after a massive financial crisis, one of the largest ever, and in a nation that set records for the size and scope of their financial problems.

To think it could be any other way is the same as expecting a health system where nobody ever dies irrespective of the problems they may have. That kind of belief is not rooted in reality.

We think that the correct response is rapid and fair intervention where warranted, and zero protections where properties are abandoned and no payments are being made.

Within this vista there are those who would have you believe the world is being torn asunder and nobody is doing anything about it.

Here are some of the statistics from the courts covering the first quarter of 2016.

New …

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