New PTsb products

PTsb have just issued a new rates matrix and the prices are good, they have a standard SVR for all loan to value amounts (ie: 90%) of 3.99% and 3.69% for LTV’s below 70%, these then revert to 4.34% after the first year which is not the market leader but it is right up there in the same ball park.

This (to our thinking) confirms PTsb’s re-commitment to the market, they have said they will up lending to c. €450m from the €60-70 (that’s the mortgage portion, the officially reported 90m includes all credit) they advanced in 2012.

They have also re-deployed staff in their broker centre which was a one person business unit last year! The staffing numbers there will be 5-6 people for 2013 which means there will be ample access for the intermediary channel, obviously direct and branch will also be active, all said it seems likely they may reach their target of €450m new lending.

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Every little helps (except when it means mortgages)

Tesco won’t be offering mortgages in Ireland despite rolling out a full host of financial services, this is also a departure from the UK proposition in which they are included, something we covered nearly four years ago.

Bothered? Maybe not, but you should be because any market with a functional duopoly is unhealthy, we saw for instance how AIB increased their rates and for 2 or 3 hours their prices were the same as BOI, but then BOI co-incidentally increased their rates by 25 basis points on the same day so the pricing difference occurred once again.

Why would Tesco decide not to enter the Irish market? They claim it’s regulation, one doesn’t need a Professional Diploma in Compliance to realise that much of our regulation is identical to the UK and in foundation is primarily based upon it, …

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