Mortgages on the rise

A sense of impending doom has been a huge part of economic and political decisions within the last few months due to the ever uncertain Brexit debacle. These feelings are slowly beginning to fade in Ireland due to the increased time that Irish businesses and banks have had to prepare for the EU split. Although this event is bound to cause slight fluctuations, economists have noted that the economic future for Ireland is still bright. 

Banks and buyers alike are taking note of this promise, which has been obvious through the most recent data in relation to mortgage approvals and house prices. According to recent bank data, there has been a  significant rise in the number of home related mortgage applications and acceptances. 

The Irish Bank and Payment Federation found that from April to June, there were 10,157 mortgages taken out, which is an 8.8pc rise from the previous period. Using yearly comparisons, it has been shown that the issued mortgage rate this time last year was around 800 acceptances lower. It topped the approvals for the first three months …

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The 2,000 Irish evictions you dont’ hear about

There may be close to 2,000 evictions that won’t be in the papers. There will be no pictures of people being forced from the home their families occupied for generations, no in depth story, little empathy and worst of all, it’s something that hurts people who are entirely innocent.

What we are talking about is the ‘move out’ letters people are getting from banks that appoint receivers and in particular the ones that are becoming commonplace when rent receivers are appointed. 

The ‘broke landlord’ is unlikely to receive much in the way of empathy from anybody, this is why receivers are being sent in on investment properties rapidly while repossessions and executions on family homes are so much slower to occur, but that misses the point, we have made one process ‘slow’ to protect families, while allowing the other to be quick to ‘get landlords’ but really all we are doing is ‘getting families’ who are affected and showing them an entirely different duty of care.

It isn’t that an investment property doesn’t house a family the same as a …

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AIB tightening criteria? Are banks really lending?

In recent days the IBF came out with a very positive story about how mortgage lending has increased year on year for the first time since 2006, at the same time the Central Bank are saying that criteria is tightening and other research suggests that almost HALF of our residential market is transacted in cash!

This is a classic example of two stories that contradict each other, or at least that seem to do so. Can you have tightening criteria with more lending? Of course you can! Demand for mortgages is up year on year (in our brokerage taking gross leads as the figure) about 30% or more.

Banks are saying that they accept the vast majority of mortgage applications (c.62% is their estimate), and the likes of AIB are actually ahead of …

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Why a bank might not bother passing on a rate cute.

Banks have been at the epicentre of the financial crisis gripping the world in 2008. The thing that must be understood is that the formation of the leverage (and subsequent deleveraging which is causing the absence of liquidity) took a long time to form and therefore we will not expunge the problems from the monetary system as fast as many may hope.

So it comes as no surprise that several banks are not passing on the ECB rate cuts. It is important watch the language they use in their press releases things such as ‘We are pleased to announce that we will pass on the full rate cut to our existing clients’ should be read as ‘If you have a mortgage with us already you will get the rate cut, but all the new mortgages, or applications in process will not get the same deal’.

Why would a bank not do the same for new clients? On one hand …

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Talk the talk and walk the walk (economically speaking)

I wrote an article back at the end of 2005 called ‘the changing face of the mortgage market’ and I sent it off to a few newspapers and several magazines, it went largely un-noticed, when I say ‘largely’ I actually mean ‘totally’. Apparently I was ranting lunacy or something close to it, if you know me you’ll also know that this was a possibility….

Last weekend in a smokey Krakow it was mentioned during a conversation that you need to make a call on things and then fall on your face when you are wrong but remain vindicated when you are right. In the spirit of that conversation (with thanks to our own resident Enda Munnelly) I will list the predictions I had and then we can either collectively laugh at me or not. The main thing is that I put my predictions on the line and show whether or not I can walk the walk.

1. More than 100%!

Traditionally there were two things stopping people from getting a mortgage, the first was qualifying for the loan, the second …

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