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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Talking Money: Downsizing your home, 3rd August 2015

Last week on Drivetime’s ‘Talking Money’ we discussed the idea of ‘downsizing’ your home and what it means, how to do it, and the things you might want to watch out for if you are considering downsizing.

As people age larger homes often become less of a requirement, equally, selling your primary home being capital gains free can be advantageous, so we looked at the angles and figured out what you should watch for.

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Two identical first time buyers walk into a bar, one qualifies, the other doesn’t

The Central Bank rules on curtailing mortgage lending have had an interesting effect, first is that we are seeing more loans draw down that might not have because people are bringing forward consumption due to the fact they won’t qualify for the same amount again in the future. This is literally the opposite of the intended effect.

Second is that it’s causing chaos for prospective buyers who may hold an exemption or need an exemption because there are quarterly reporting rules that mean banks can’t offer a new loan until they know if an old one will be drawn or become an NTU (not taken up).

Perhaps the easiest thing to do is explain it, currently you can’t get an exemption from Ulsterbank or AIB/EBS/Haven or BOI, but you can from PTsb and KBC. The banks that can’t give you one (and remember it’s only one of LTV or LTI not both) are hogtied because they have given the limit of exemptions (c. 15%-20% of lending) already in loan offers and they have to estimate both the annual and quarterly …

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How much deposit do I need to buy a house?

This is a really common question, people are still unsure about how much they have to have in order to get a loan. While it is simple enough in terms of the rules, what is tricky is that keeping track on exceptions becomes difficult in a ‘live mortgage loan’ situation because some may draw down and others don’t.

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RTE Talking Money: The cost of raising kids

This week on RTE’s ‘Talking Money’ we looked at the cost of raising a child. Everybody who ever had kids knows it’s expensive, but did they realise it can cost about €105,000 per child? That’s a real eye opener and that so many parents cut back on vital financial needs like life insurance to allow for general consumption is a concern. As always, you’re bound to be entertained as Karl Deeter and Jill Kerby ‘talk money’.

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