Mortgage Rates – comparison to Europe

High mortgage rates and strict mortgage regulations are greatly effecting borrowers. According to the Independent, Ireland’s high mortgage rates are costing borrowers up to  €60,000.

Although Irish mortgage rates have dropped in May according to data from the Central Bank, the rate remains the second highest in all of the eurozone. The only country that has higher mortgage rates than Ireland is Greece.

The average rate on all new mortgages averaged to 3.01% in May. The rate decreased by two basis points since April. However, the average rate in the european area amounts to only 1.68%. However, in comparison to the United States, the average rate is around 3.5%. The lowest mortgage rate in the eurozone is Finland. The rate defined in Finland is less than 1%.

According to the Banking and Payments Federation, the average first time buyer mortgage is now defined as €225,000. This means that the typical first time home buyer who is borrowing €225,000 over 30 years will pay about €143 more per month for their mortgage. If the average first time was able to borrow under the eurozone average rate, …

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PTsb compel clients to go for variable rates as fixed rates start at 7.25% (no joke)

We thought a client of ours was joking when they said they were being told that as an existing customer of PTsb on their mortgage that the only fixed rates they were getting offered were more than 7%.

It’s a standard residential loan rolling off a 1 year fixed rate, the ‘existing business rates’ (to you and me that’s ‘the loyal customer rates’) are so awful that we can think of no reason for why anybody would want to borrow from PTsb unless they never want fixed rates or need the cashback offer they have.

As a broker we obviously have to consider our past, present and future relationship with any lender, one way to sour that relationship is to take clients who are on a reasonable product and price and then strip them of choice (which is what a rate of over 7% effectively does) when the initial honeymoon is over.

For that reason we would remind people to consider their lender proposition very carefully and to get independent advice because when you go direct you’ll never get to …

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Newstalk: Pat Kenny Show on variable rates

We were asked to speak with Pat Kenny today about variable rates and the government plan to intervene to make banks drop them. This was, after considering various pieces of evidence shown to be a deeply political rather than pragmatic move. We also demonstrated that there are documents which the Minister for Finance had drafted up with the banks specifically stating that he would not intervene on matters of pricing, the recent round of ‘meetings’ is in direct contravention of that.

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RTE Today with Sean O’Rourke on mortgage rates

We were speaking with Sean O’Rourke about mortgage rates, that they were falling as part of a trend and that new moves to force them down would likely not work. It came on the back of a piece by Conor Pope in the Irish Times that quoted us in the article entitled ‘New bank levy could see mortgage rates rise not fall‘.

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