Looking at the make up of the mortgage market

Delighted to see the Central Bank getting some granular detail on our market! … Literally, we have been waiting for years to go beyond the overview figures.

We see now that 25% of Mortgages are buy-to-let’s (representing €24.6bn in lending), so almost 200,000 loans are secured for the purpose of investment, which raises an interesting taxation point when it comes to retirement.

Recent figures by the pensions board show that 40,000 fewer people are in pensions and that of the 2.1m workforce that about 800,000 have pensions; naturally this doesn’t factor in many property investors who use that as a retirement plan.

And that is where I think we’ll see some traction, people may move to paying down their debts (which they view as a retirement plan via a RIP loan) rather than putting funds into pensions. Perhaps with the changes in interest rates for many residential investment loans they are doing neither and merely trying to stay afloat.

The recent pension …

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