Irish Times article featuring Irish Mortgage Brokers

Conor Pope from the Irish Times had an interesting article on lending restrictions and did a good piece on it in today’s paper. In the piece he quoted Karl Deeter from Irish Mortgage Brokers on his views about the effect of the Central Bank rules on the property market.

“Karl Deeter, a mortgage broker and keen observer of the property market, has written an extensive report on Dublin’s boom-and-bust cycles spanning 300 years. He is not one of the Central Bank’s cheerleaders, and he is unconvinced that the 2015 scheme deserves much credit.

“I don’t think the new rules have had any real impact on the house market despite how it might be characterised,” he says.

Deeter points to an International Monetary Fund study of six countries that introduced lending restrictions. The report indicated that the rules made little difference, he says.

“In the credit market the rules have caused a fair bit of chaos. But I think prices were going to slow down anyway. We are in the middle of a property cycle, and cycles …

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Independent Newspaper mentions Irish Mortgage Brokers

In an article today about mortgages by John Cradden of the Irish Independent we were quoted extensively regarding our thoughts on loans, extracts are below:

Last month saw the official launch of a new mortgage lender here in the form of Australian firm Pepper, who will be lending to the self-employed and those who got into arrears during the downturn but are now back on track.

“Up to now, if you had credit issues you were virtually unbankable, that is set to change,” said Karl Deeter of Irish Mortgage Brokers. “Equally, as banks add bells and whistles to their product suite, you’ll see some will be about flexibility rather than price and that’s a sign of competition in product differentiation coming through.”

He adds that rates will improve with the new competition. “This was what happened in the last credit cycle and will happen again so time will take care of that, but Ireland also has unusually high risk associated with our loans so that has to be factored in.”

The cashback offers are another popular incentive, with …

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One Big Switch findings on mortgage holders

There was an interesting infographic out today from One Big Switch showing what people have done in order to make their mortgage repayments.

It ranged from working extra hours, to taking fewer holidays and socializing less. What is interesting about this, is that nobody tends to look at the wider economy effects of high mortgage rates, and the Central Bank while saying they want to examine them, cannot and will not do anything about it.

Higher rates act like an informal ‘tax’, and as some banks are foreign owned it means taking income out of the Irish economy and funnelling it elsewhere, this affects our balance of trade and was a reason we always questioned the Patrick Honohan diktat of not having an issue if all banks were foreign owned.

This informal tax reduces expenditure in the productive economy and goes towards rationalizing zombie balance sheets, so lower rates should be a priority for everybody, but the way to get there isn’t force, it’s competition and for that reason we are hopeful that the switching campaign will be a successful …

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Irish Mortgage Brokers mentioned in the Independent

In an article by Sinead Ryan in the Independent we were quoted on several matters:

With all the talk of celebrating the Rising in 2016, it won’t extend to a rising mortgage market, says broker Karl Deeter. “The changes to lending criteria and in particular the Central Bank changes meant that while 90pc LTV (loan to value) mortgages were available, as the year progressed more banks started to withdraw them. Due to the way the figures are going to be reported in 2016 it will be a case of, ‘Want a 90pc mortgage? Get it in January or July’. And that’s because the half-year periods are going to be the times in which they are mostly available.”

One positive change, says Deeter, was that interest rates came down during the year, in particular fixed rates as banks came under pressure to explain Ireland’s excessive rates compared to those enjoyed by our EU neighbours. Although all banks rocked up at the Banking Inquiry, and most were (or tried their best to sound) contrite, the truth is that pillar Bank …

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Pepper spice up mortgage competition

We are delighted to see a new mortgage lender entering the Irish mortgage market to provide homeloans (rather than to merely service other loans that are being sold).

Pepper started out here as a mortgage servicing company, so when a bank wanted a company to manage their loans they’d get a third party like Pepper to take care of that for them, but they were also a lender in other jurisdictions they operate in (like Australia).

To that end they have started up here too. We were contacted by and consulted with Pepper for a long time prior to this and thought that it would still be some time before they would launch, but they got their operations up and running and that makes them the first new entrant in the Irish mortgage market since before the crash (that will actually be lending money to people to buy homes).

They have also looked at a few niches the incumbent Irish banks haven’t been servicing, so there are options there for the self employed, or for people who might not have …

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Why people will still invest in property in 2016

We plan to go through the maths soon of why the tax breaks that ended in 2014 were a bigger driver of a slow down in the market than the Central Bank rules, this aside, people will still invest in property.

The world of investment is relative, not absolute and for the €90 billion sitting in deposit earning 1% (at best) or less the implications are clear, you have to invest somewhere or get substandard returns which will eventually be eroded by inflation.

Along with a future of quantitative easing in Europe, the likelihood of a Dollar that will get stronger and a stock market that looks toppy to many, property will remain a focus for better or worse with many people who have money.

On the capital side you have a known shortage of property, that would lead some to believe there are significant capital gains to be had. On the dividend or yield side, you have strong rents which are still showing signs of rising.

Rents are certainly very strong versus the return on deposits even when you …

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Mail on Sunday highlight some of our research from the courts

Bill Tyson was writing in the Mail on Sunday and highlighted some of the research we have helped to carry out on the courts around Ireland when it comes to documenting repossessions.

We were pleased to see this get coverage that wasn’t driven by emotive bylines and rather considered the facts as presented.

Click on the image below to see the full size version

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Morning Ireland airs our idea to help the homeless

We were really pleased that Morning Ireland covered our joint idea with Fr. Peter McVerry on a way to help reduce pressure in the rented sector by giving landlords tax breaks in return for rent-freezes.

The idea is simple, you allow landlords to get full mortgage interest relief and offset their local property tax in return for giving the tenant a ‘rent freeze’, this can be managed via the PRTB who already link in with Revenue on some matters.

The clip explains how it would work, in the piece you’ll hear Fran McNulty discussing this idea with Karl Deeter

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RTE Talking Money – AirBnB (making a house pay), 17th August 2015

With Revenue set to receive the names of over 9,000 AirBnB ‘hosts’ we looked at the implications of this as well as other ways to make your house pay for itself. The obvious one is the tax free €12,000 ‘rent a room’ scheme, but it doesn’t stop there! Find out more as Karl Deeter and Jill Kerby ‘Talk Money’.

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Talking Money: Financial milestones of your 30’s, 10th August 2015

On the 10th of August we looked at the ‘financial milestones’ you should have reached by the time you are in your 30’s.

As with many things, these are not ‘set in stone’ but in general, they are good indicators of how you are doing on your road to financial health.

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