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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