EBS rate hikes, the benefit of mutuality?

EBS have announced a rate hike of 0.6% which is a follow on from their last 0.6% hike that was levied against variable rate mortgage holders on the 1st of May, this brings their margin increases to a total of 1.2% for the year to date.

Today’s Indo lead with this story (by Charlie Weston) and rightly pointed out that by the time this is over, a person with a €300,000 mortgage over 30 years could expect to pay just over €3,000 a year (after tax) in increased mortgage payments. For a person on the average industrial wage this is like a full months wages before tax being sucked away by the financial system. Tax hikes and wage cuts aside, this will ultimately reduce the money that is being spent in the economy and it will disappear into the financial system where banks will use it to de-lever further.

The contention for many people is that they are being punished, not for what they have done …

Read More

Who cheats more? Politicians or bankers? With Dan Ariely

Legendary Behavioral Economist Dan Ariely presents a piece about trade off’s between instant gratification versus long term gratification, reward substitution, cheating, trust/revenge, global warming, executive pay and many other fascinating topics. This video is fascinating and for me is a real insight into the psychology behind economics that is so often over looked in classical economics. This is explained in simple terms that we can all understand and relate to, hope you enjoy!

Read More

Regulation failure: Independent brokers unable to be ‘independent’

We were thinking of changing the way that brokers operate, by saying to our clients ‘our service comes at a price, we’ll advise you on any lender in the market and be totally independent, if we place your loan with one that pays commission you can set that against your fee, and if not then pay the fee’, doing so in the belief that totally transparent and independent advice is a good thing, and something that everybody wants, the broker, the consumer and the Regulator.

Sadly this is not the case, instead the Regulator (soon due another name change to ‘Central Bank Financial Services Authority of Ireland’) is relying on the letter of the law in the Consumer Credit Act of 1995 to ensure that brokers can’t give best advice. This is an example of total regulatory failure.

The actual portion of the code is S. 116.1.b which states ‘A person shall not engage in the business of being a mortgage intermediary unless— ( a ) he is the holder of an authorisation (“a …

Read More

Marian Finucane Show: 26th June 2010 – featuring Irish Mortgage Brokers

We were delighted at the invitation to join the Marian Finucane show on RTE 1 last Saturday for the second time this year, we were asked to go on alongside Angela Keegan of MyHome.ie to talk about property prices, mortgage lending criteria and property tax.

The RealPlayer version is here

You can check out an MP3 of it here

Or go to RTE and go through the list of shows to find it here

If you were listening to the show and have any questions relating to it please feel free to call us or email your query. We hope you enjoyed the show and if not then listen back to it!

We hope to be on this show again soon and help to raise the debate of Property Tax again.

Read More

Are 100% mortgages the problem? Is LTV a symptom or a cause?

An article in the Independent yesterday pointed toward 100% mortgages being a significant attributer to the bubble, I would wager it was a symptom rather than a cause, the IBA meanwhile has called for all mortgages to be made on a non-recourse basis.

The good thing is that people and organisations are trying to find a way to avoid a repeat of the property bubble, and they are not one off events as the UK can testify.  There are however, significant factors contributing to what happened.

1: lenders didn’t price risk, they didn’t even ‘price at all’: Banks have utterly failed to do the job they were designed to do, namely that of profitable intermediation, we had huge amounts of competition on lending, that drove down criteria requirements and also compressed margins, then along came trackers, these had low margin price promises – Bank of Scotland brought them into Ireland and have since left. I spoke with a Bank exec. yesterday and he …

Read More

Irish Mortgage Brokers in the press, May 2010

We had a busy month in the financial commentary world. A list of our press mentions is below

23rd May 2010: Sunday Tribune: Safe for a while against rate hikes

23rd May 2010: Sunday Times: A bad time to invest? Q & A with Jill Kerby

23rd May 2010: Sunday Tribune: Mortgage rate increases

16th May 2010: Sunday Times: Keep hold of your home

16th May 2010: Sunday Tribune: Mortgage group mull over Negative Equity Loans

16th May 2010: Sunday Tribune: Recession Rates

14th May 2010: Newstalk 106: Ivan Yates talks to Karl Deeter about Property Prices

15th May 2010: Independent: Property prices must fall to attract investors

13th …

Read More

RTE ‘Frontline’ with Pat Kenny: NAMA for the little people?

RTE Frontline 12th April 2010 – NAMA for the little person? from Irish Mortgage Brokers on Vimeo.

Irish Mortgage Brokers was featured on RTE’s ‘Frontline’ with Pat Kenny on Monday the 12th of April 2010. The topic of the day was about bailouts for home owners who are in trouble with their mortgages.

Noleen Blackwell of Free Legal Advice Centre was there on behalf of favouring methods to save home owners, and Karl Deeter of Irish Mortgage Brokers was there promoting the use of market mechanisms as a solution, along with arguing the case that for many people, bank ownership of their home is not necessarily a bad thing.

This is a hot topic in Ireland, in particular because many people feel, that taxpayers stepped up to save our banks, so now they should do the same in return.

Read More

Tony Brabazon: Biologically inspired Algorithms

Tony Brabazon talks to CFA Ireland on Biological Algorithms from CFA Ireland on Vimeo.

Tony Brabazon spoke to CFA Ireland about Biological Algorithms and using patterns or approaches found in nature as a foundation for solving issues in other fields. This is a fascinating talk by a highly skilled and knowledgeable academic who is based in UCD.

You can find out more about CFA Ireland here: http://www.cfaireland.ie/default.aspx

CFA Ireland welcome new members and if you’d like to be part of what is considered one of the most professional and respected financial charters worldwide you can find out more here: http://www.cfaireland.ie/member/default.aspx

The video was shot by Karl Deeter with kind permission of CFA Ireland

Read More