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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We know what to do but will we do it?

This article first appeared in the Sunday Business Post on the 7th of February 2016

Below is some well-intentioned advice on what could be done to improve the housing situation

That commentary is often critical is a natural by-product of looking at a situation as it is and considering how it could be. Ideals are not the same as standards and what ought to be is often far from what is.

For that reason I hope to look at areas in the coming weeks where improvements could be made in the Irish property market to achieve specific aims of lowering the cost of housing and delivering more housing.

I know the fine folks in the Department of the Environment read this column, as they sometimes are kind enough to complain to my editor about how we deal with subjects, so hopefully this will be taken in the spirit of some well-intentioned advice.

First off, we should end construction levies. These are up-front taxes or development levies based on the square meterage that you intend to build. The issue with them …

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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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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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Irish Times mention Irish Mortgage Brokers in article about renting

We were quoted in a this piece by Aoife Valentine of the Irish Times which was an interesting article about the situation renters face.

When discussing the rising age of first time buyers she quoted us as we mentioned that “this is something that’s become very obvious to mortgage broker Karl Deeter.

“When I started working in lending in around 2003, people in their 20s were borrowing. Nowadays, your typical applicant is no longer 24 to35, they’re 30 to 40,” he says.

New mortgage lending rules issued by the Central Bank in January say that first-time buyers may borrow only 3-and-a-half times their gross annual income, and they must save a 10 per cent deposit on the first €220,000 of the value of the property and a 20 per cent deposit on any higher value.

Deeter believes these rules are now having an effect on who gets on the property ladder.

“What the deposit rules have done is keep people in the rental sector when they otherwise would have been …

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Newstalk Sunday Show: A discussion on the ‘Tsunami of repossessions’ that hasn’t arrived

On Newstalk’s ‘The Sunday Show’ Shane Coleman spoke to Karl Deeter (of Irish Mortgage Brokers) and David Hall of the IMHO.

It was to cover the topic of repossessions and some research that had  been carried out by Karl Deeter and several others (Seamus Coffey, Economics lecturer in UCC, Brendan Burgess of AskAboutMoney.com and Simon Farrell, researcher) about what occurs in courts during possession hearings.

The debate was robust and lively.

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Drivetime RTE: Karl Deeter on pan-European Mortgages

In this piece on RTE’s flagship evening show ‘Drivetime’ Karl spoke about how mortgages being ‘cross boarder’ may not result in better prices for Irish consumers any time soon.

Obviously it would be great for the broker industry who are the natural distributors of such products, but there are many other factors at play including the largely under utilized Insurance Mediation Directive.

The piece finishes with some thoughts on rent control (or ‘certainty’) which are being suggested by Alan Kelly.

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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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Dublin Economics Workshop: another century in 300 years of Dublin house prices

We were very pleased to see a joint paper by Karl Deeter (Irish Mortgage Brokers) and Frank Quinn (Blackrock Further Education Institute) featuring in the 38th Dublin Economics Workshop.

This was Karl’s fourth year in a row presenting at the conference- although this time his presentation was on court statistics in possession hearings, Frank took care of the property paper on his own. Above is a picture from the day.

Further commentary on the court findings will be released soon.

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Podcast: Mistakes that first time buyers make with Joanne Daly, episode 00001

Joanne Daly has been a broker for 13 years and in this piece she speaks to Karl Deeter about the errors that first time buyers make prior to making their mortgage application, thankfully most of what she mentions is easily rectified!

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