The different types of interest rates available for mortgages

By regulation lenders must publish APR‘s as well as the interest rates on mortgages. APR’s take into account all of the costs associated with a mortgage including the set up charges, (the interest rate itself naturally in there too!) and ongoing fees etc.. As long as you are comparing loans over the same term the APR is an accurate gauge of considering one versus the other.

Within the industry we tend to focus on the ‘Cost per thousand’ which is the actual cost of a loan for every thousand borrowed. So we’ll take the following situation

Loan amount: €300,000 Interest rate: 4.8% APR: 5.0% Cost per 000′ 25yrs: €5.73

(normally cost per thousand or ‘cost per 000’ sheets are only held by people within the industry as its a sizeable matrix but if you want to ask a very knowledgeable sounding question inquire about the cost per thousand as it shows the actual end cost of one loan versus another)

Anyway, what would …

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The shape of reduced credit in Ireland

The current market is one in which mortgage lending rose at it’s lowest rate since the mid 80’s, this is coupled with a property market which is going through a painful readjustment. The figures for how many properties remain unsold are being argued in the public domain with counts from as low as 35,000 to as high as 200,000.

There is no precise and accepted accurate figure and thus the supply side remains unknown, the other issue affecting the market is the reduced availability of credit on certain types of property (apartments in particular) and a more stringent underwriting process as well as a re-assignment of staff away from commercially gaining activity into collections and arrears departments.

What can we expect to see from lenders in the near future? We will discuss some of the possible trends that may start to come into the market.

1. Lenders introducing fees: This is not a ‘fee’ in the traditional sense, such as ‘account fees’ this is a fee paid to them as an …

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Brokers short sell themselves in a race to the bottom.

It is clear that I am no fan of the new ‘homeloanchoice‘ scheme brought into being in the 2009 budget. I have always felt that ‘if it ain’t broke, don’t fix it’ and this is a case in point. There has been no empirical evidence to suggest that this scheme was called for, there is no research, no surveys, nor any hard fact that gives the foundation to the creation of a scheme that will potentially see upwards of half a billion going towards it.

When you take medical cards away from old people and give income levies to even the most low paid of workers, a scheme that helps create debt when none was asked for seems ridiculous at a minimum. So why was it created? There was no demand for it, and we know from speaking to our customers and from other people in the mortgage market that …

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