Donhoe’s Investigation in Interest Cap on Loans

The Minister for Finance and Personal Expenditure and Reform, Paschal Donohoe, has begun investigating the idea of capping interest rates moneylenders can charge. The discussion of capping maximum interest rates has been brought up by the fact that moneylenders can charge insanely high percent annually on small loans. In other words, any licensed moneylender is able to set their own interest rate. There has been a recent push onto the Minister for Finance to create a interest cap on loans.

Why is the ability for licensed moneylenders to set their own interest rates an issue ? Interest rates determine the price at which individuals can borrow money. The higher the interest rate the more expensive it becomes to borrow money. The higher the cost of money the more difficult it becomes to borrow money and thus discourages investment. Ultimately, ability to set extremely high interest rates means borrowers will be paying a high price for money. The higher the interest rate set by a moneylender the higher the lenders profit will be.

In comparison most countries in the European Union …

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The mortgage market for returning expats

The government has pushed hard in recent years to bring professional workers back into Ireland, welcoming plenty of new construction and dozens of foreign tech companies into the docklands. With many talented workers finding jobs elsewhere in the EU and in countries such as USA and Australia in the aftermath of the financial crisis, it is essential to Ireland’s future as a highly advanced and modern nation that its own professional workforce be well employed at home. Well government initiatives have already seen great success, many returning expats are faced with various complications when attempting to bring their families back home. Amongst these complications is the difficult process these Irish citizens have to go through to get mortgages.

 

Expats currently working and paying tax in another country are considered non-residents. Thus in the books of most major lenders, they are segregated from all other Irish citizens and placed into similar categories as foreign nationals. Thus, returning expats face stricter limits on income and on Loan to Value ratios when apply for …

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