Mortgage switching: how, when, why

What does it mean to switch mortgages? Why would someone want to switch? What can be gained from switching? Finally, if one wants to switch, how should they go about doing it?

The first question is easy to answer, though oftentimes “switching” can get conflated with “remortgaging.” Don’t be fooled; these refer to two different things that, while similar in concept, can have different implications for the borrower.

“Remortgaging” simply refers to getting a new mortgage to replace a previous one; this can be done with one’s existing lender or a new one.

“Switching” is the process of taking one’s existing mortgage and moving it to a new lender.

Now, for the next question: why would a borrower want to switch mortgages? There are a number of reasons for doing so. Firstly, a borrower might be dissatisfied with their current lender for one reason or another, like poor service or lack of responsiveness to inquiries. If borrowers think another lender will provide better service, tat would be a good reason for switching mortgages to said lender.

Another reason for switching …

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Could Ireland be a leader in fintech development?

The financial technology (fintech) industry has seen rapid growth worldwide, in time with the rapid progress of technology itself. Examples of new products that have come with this trend are loan management software, crypto-currencies, and more. These products can be targeted for use by businesses as well as the average consumer, and together they led fintech to become a $200 billion industry worldwide in 2019; it is expected to be worth around $305 billion by 2025. The leader countries in fintech development as of 2020 include the U.S., the UK, and Singapore, with developing countries like China also expected to become major players in the near future.

However, Ireland may also have the potential to become a global fintech hub in the near future. Ireland’s pro-business governance makes it an appealing place for businesses looking to enter the industry. One aspect of this appeal is its low corporate tax rate of 12.5%. Additionally, its research & development tax credit of 25% makes it very friendly to tech companies and encourages continued innovation. Its double taxation agreements with many other EU …

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How Brexit might impact Ireland going forward

As of 31 December, 2020, the transition period of the UK’s exit from the EU has ended, and Europe is now left to deal with its economic fallout. General consensus seems to be that the move will ultimately prove harmful to the UK and the EU, including Ireland. In fact, Ireland will likely be more affected, as it is more exposed to its effects than others due to the intensity of trade between the two. Costs associated with that trade will undoubtedly increase, as the UK is Ireland’s second-largest training partner, accounting for 14% of Irish exports and 26% of imports, second only to the U.S. Brexit will necessitate additional steps in conducting said trade. Trade between the two is already said to have fallen substantially. To get around this, some businesses have been going through Northern Ireland.

Trade with the rest of Europe will also be made more complicated post-Brexit. Shipments from Ireland to the mainland have often gone through the UK historically. Now, Irish businesses have had to find and arrange for new routes. At present, these new …

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The legacy of the “Double Irish” loophole

The “Double Irish” was one of the most notorious tax loopholes, used by large firms for decades since the 1990s. It was base erosion and profit shifting (BEPS) method used by many notable entities, including but not limited to Apple, Google, Microsoft, and more. Though closed in 2014, the loophole remained open to firms already using it until 2020. Even since its closure, there are concerns that firms that had used it previously will just shift to using different methods. Overall, this and similar methods used have had a substantial impact on Ireland’s financial system and records, something that is still being addressed today.

The Double Irish was conducted via the following steps. First, a U.S. corporate entity would develop a product or software for a price, and then sell it to a wholly owned subsidiary in Bermuda. Next, the company in Bermuda would revalue it as an intangible asset of a far greater price, as Bermuda is tax free. The Bermuda subsidiary would then license it to another subsidiary in Ireland for the same price. Important to note is …

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The Gender Gap is still Prevalent

The Bank Of Ireland has recently reported that there has been a slight decrease in the gap between the pay received by their male and female employees. However, the bank is still working to reach a 50:50 balance for its workers.  Currently, the bank of Ireland is reporting a gender pay gap of 23.8% across all their departs, which is a 0.4% improvement from the last year. The bank has stated that a large proportion of this comes from the under-payment of their female employees at senior levels and junior grades.

The system that the Bank of Ireland uses to calculate the pay-gap difference is by working out the average pay of all women in the company and comparing then to the average pay of all the men in the company. The Bank of Ireland is currently introducing more flexible ways of working with all employees, as well as pulling career development and leadership programs for their female employees.

It was reported last year that nearly 41% of all senior appointments in 2020 were female, which is an improvement from …

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State of the European Stock Market

European stocks have seen better days than the dip they are currently experiencing. This dip has largely been due to the rising bond yields seen in the market. These have spurred hopes of seeing a solid economic recovery in the European markets. As of this past Thursday, the Dublin market closed virtually unchanged compared to recent numbers. Banks, on the other hand, had been affected more wildly with the Bank of Ireland up nearly 2.5% and the AIB up nearly 3.6%.

Housebuilders have also seen some changes in the market with Bairn Homes closing at nearly 1.9% higher. For other industries such as food stocks, Glanbia closed at nearly a 1.6% increase. For London’s Ftse 100 reversed, they were able to close with a relatively strong week. The total of the Gtse 100 index closed at 0.4% higher, which is the second consecutive week that investors have seen a rise despite the coronavirus still being prevalent. Even though there has been looser COVID-19 restrictions and the vaccination program picking up speed.

Other Bank stocks such as HSBC, Lloyds Banking Group, …

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It is an Emergency! Do you have an emergency fund?

Oh no, you just got into an accident on Tuesday during the rush hour during the rain. Do you have the money you can come up with right now to pay for the accident, could you do it? Although it might not be a greatly rewarding goal or cool, the emergency fund is the foundation of what your entire financial health is built upon. Without it, it could be a matter of time before it comes tumbling down.

Many common unexpected costs come weekly or monthly for an individual. Your car could break down in the middle of the highway, maybe your toilet broke, or many other things that could have happened. Most commonly, people throw these unexpected costs on to their credit card rather than paying out of their emergency funds. That’s to say the same as running but with a backpack full of books. Financing is on a credit card can easily climb not the thousands when people could have easily paid it off in one year.

The lack of an emergency fund costs you more than just …

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Money Questions for Couples

Things are going great with you and your significant other. You have been dating each other for a while and things seem to be going great, but until you start asking about their financial history. Being asked or asking about someone’s financial history can always be daunting. Many young couples spend hundreds of hours planning their fabulous wedding but forget to prepare for their financial mergers. People treat money as a scary monster, so we tend to avoid bringing it into the conversation.

Almost one-third of couples say finances cause the most stress in their relationship. Couples who fight about money once a week are 30% more likely to be divorced than those who fight about money a few times a month. This can all be avoided in the beginning by having an honest and open conversation about their finances before getting married. Here are some questions to ask to start the conversation.

What do you earn, owe, and owe?

It may be hard to open up about this question, but the lack of money is better than the lack …

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Is combining Finance the right thing to do?

Finally! Today is the day, your significant other is moving in with you!  A dream that finally came true and you both are dancing happily. But then, the first rent bill comes, and you are stuck. How should I handle or now how do WE handle it? Back in the day, typically couples were married and combined all aspects of their lives together. All was now family property. Times have changed, couples are moving in together before marriage without any legal binding and it leaves them wondering, how do we handle our finances? Should you and your significant other consolidate your finances or maintain your own finances independently?

How many couples have their finances shared, separated, or some of both? Millennials that live together are more likely to keep their finances separated than any other group. There are many advantages to keeping them separate. One may be in a situation where they hold debt. With debt in their shadows, it is easy to understand why they may feel guilty to burden the other with their problems. Or you may have …

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What does “Get Rich Quick” even mean?

It is not uncommon that you probably have stumbled upon these ads where people claiming, “Want to know how I got rich quick? Watch my video for more!”. They show off their riches while standing in front of large mansions and Lamborghinis and if you continue to listen, they most likely tell you an inspirational story about how they came from rags to riches. We know this cannot be real, but we all have a small voice in our head saying, “Is it actually possible?”. Are they actually teaching us useful financial advice that could put us in jeopardy or are they just a regular old conman?

We may typically think of a conman to be the same thing as a thief or a liar but a true conman does not force us to do anything. They do not forcefully steal our possessions away from us, rather they trick us into giving up our own things. They are manipulators and we are obsessed with them. We see them in movies and comics but fail to see them in our day …

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