Sunday Times ‘Money’ Section mentions Irish Mortgage Brokers

We were very pleased to see that we were mentioned in the Sunday Times ‘Money’ section this week in an article by Niall Brady in which he examined the implications of reduced competition and increased regulation in the financial services market in Ireland.

For our part we were asked about mortgage credit and had this to say: ‘Karl Deeter of Irish Mortgage Brokers said: “Lenders are using every blunt instrument in the box to frustrate loan applications. One of my clients was turned down on the pretext her employment wasn’t secure. She works in reinsurance and, because of last year’s record floods, her employer recorded a loss. It is part of a global reinsurance giant, though, that makes €3 billion in profits a year. That’s the type of stupidity that borrowers are dealing with.”

First-time buyers must have at least a 10% deposit and a record of saving to back it up. “Banks aren’t interested in parental gifts or guarantees,” said Deeter. “They …

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Dear Deeter: your finance questions answered

Dear Deeter,

I haven’t done anything wrong, in fact, I’ve done something right (just this once!)… I didn’t crash my car or have any claim against my insurance and yet the price this year has gone up? What have I done wrong? Why is my insurance getting more expensive?

Sincerely,

Curious in Tipperary,

—–

Dear CinT

(that acronym is for ‘Curious in Tipperary’, not the other word it may look like)

The simple fact is nothing ‘wrong’ has occurred from a personal point of view, you didn’t ‘do’ anything, rather (no joke) it was actually the rest of the world who made the error…. O.k. it’s not that simple, but it ain’t far off either.

The way insurance companies make money is by taking premiums from you, a certain amount goes for ‘re-insurance’ where they pass on some risk to another company, in essence the insurance company takes out insurance – in the last year there have been more claims as burglaries increase with the recession, there has been some freakishly bad weather with floods, freezes and snowfall all wreaking …

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Sunday Times: Beat the Zombie Banks

The Sunday Times had an interesting article by Niall Brady which was pointing out the arbitrage that the consumer could have between retail institutions, by that we mean you could borrow at one rate which is cheaper than the rate you could earn interest at.

This kind of thing would never happen in a traded market because it would be closed down by practising traders, however, in the retail finance channel it can exist due to consumer inertia and the low level of profit that can be exercised in this manner.

It is however an interesting take on the market and the kind of unusual angle we love to see coming to press, (we should also point out that our firm got a mention in the process!).

The situation that currently exists is one whereby a person can borrow (for instance from AIB on a 2yr fixed rate mortgage) at a price which is below the return on another asset, the thing that wasn’t …

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‘Are we there yet?’…. when will the bottom of the housing market be reached?

The most popular question I am asked as of late is whether or not we are at the bottom of the housing market, and the answer is ‘no…. but perhaps closer than we think’. Today we will consider a few of the things we will need to see in order for ‘recovery’ to occur.

First of all we need to see a reduction in the massive overhang of housing stock, even if the number reduces, they all need to be sold and a degree of scarcity will need to develop in order to make prices go up again, currently supply is swamping demand and that dynamic will leave uncertainty in its wake.

However (and here is part of the ‘perhaps closer’ bit), NAMA will likely take a lot of housing off the market, in particular it will take it off the market and drip feed it back in, if this happens then it will avoid devastating fire sales, it might also lead to stagnation …

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WE HAVE MOVED! To 33 Pearse Street.

We have moved our offices to a new location (still on Pearse Street) to 33 Pearse Street.  It’s about 250 metres towards the city centre from our old offices, and three doors down from O’Neills pub (everybody in Ireland seems to use pubs as landmarks!).

The new office decision came when our lease on our old office came up for review, we felt that there were deals to be had on the market and it didn’t make any sense to stay put, if you drive down Pearse Street aiming to go to the north side then you’ll have to pass our offices, its the place painted red and yellow.

Other than our location everything else has stayed the same (our broadband is temporarily down), you can email us at our regular email addresses and our phone number is still 01 679 0990. Individual broker direct dial phone numbers have changed but we’ll publish them soon on our website and make sure that everybody gets an email.

The blog will be back up to full speed as of next week and …

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Financial planning? Get a financial planner!

As the lyric goes I’ve been laid up from work my rent is due, my kids all need bran new shoes, money’s too tight to mention… Mick Hucknall soared up the charts in the 80’s with this song, and looking back, society has little changed some 20 years later. In reality, many of us are quite familiar with this …

Financial planning is a phrase that is slowly and surely beginning to permeate society at every level; TV, newspaper, radio, and even bus shelters. Financial planning can be defined as A coordinated process for identifying, planning for, and meeting goals related to financial needs for individuals, families, and small businesses.

As it applies to Joe Soap, it basically means that both he/she and their family are protected in uncertain times. How does one do this? Who should they turn to?

Can we really plan for the worst?  Planning for eventualities is a part of life, and whether we like or not, sooner or later they happen. All a person can really do …

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