Mortgages on the rise

A sense of impending doom has been a huge part of economic and political decisions within the last few months due to the ever uncertain Brexit debacle. These feelings are slowly beginning to fade in Ireland due to the increased time that Irish businesses and banks have had to prepare for the EU split. Although this event is bound to cause slight fluctuations, economists have noted that the economic future for Ireland is still bright. 

Banks and buyers alike are taking note of this promise, which has been obvious through the most recent data in relation to mortgage approvals and house prices. According to recent bank data, there has been a  significant rise in the number of home related mortgage applications and acceptances. 

The Irish Bank and Payment Federation found that from April to June, there were 10,157 mortgages taken out, which is an 8.8pc rise from the previous period. Using yearly comparisons, it has been shown that the issued mortgage rate this time last year was around 800 acceptances lower. It topped the approvals for the first three months …

Read More

Central Bank report on Switching mortgages

That so many people can switch their mortgage and don’t was always something that puzzled us as professional advisors.

(dowload the report here)

They found many of the things we intuitively knew but put numbers on it, issues such as inertia, complexity of product, and other issues like naive procrastination.

The numbers are not small either, savings of over €10,000 are being passed by and Irish consumers seem to be willingly paying about €65,000,000 more than they should to the lenders simply by not being more pro-active with their own finances.

Read More

KBC reactivate the switching market

There has been an absence of competition in the switching market for some time. AIB don’t even do them while others try to avoid switcher loans. PTsb have been in that space for some time but were largely unchallenged except by (to a lesser extent) Ulsterbank.

Which is why it’s nice to see KBC come out with a product for people who want to switch to them. Naturally the best prices are at low loan to values, these types of loans have obvious advantages to banks in terms of the condition of their loan book, but it’s good to see this as moderating credit conditions have to start somewhere.

Read More

AIB Interest Rate Hike: How much? To Who? What’ll it cost?

Yesterday AIB increased interest rates for both existing and new borrowers. This comes as a huge blow to consumers, in particular given that the consumer is the same taxpayer who has done so much to bail out the bank. Do people have the right to be angry? Hell yeah they do!

The move has been coming for quite some time, we have been harping on about this for over a year, the most recent prediction was to put a time-frame and figure on the hikes, stating that it would start in Q1 of 2010 and in the course of the year we’d see c. 100 basis points or 1% of an increase across the board with a further 50 basis points or 0.5% in 2011. Today’s Independent has stated that we can actually expect all of it in 2010.

Why is this happening?

Simply put, the banks are not charging enough to cover the costs of loans that are not performing. In a way you …

Read More

Mortgage Application Requirements: What do I need and Why?

The average mortgage taken out in Ireland is approximately €260,000. Before mortgage providers lend-out such large amounts of money they need to be as sure as possible that the funds will be repaid in full and on time over an agreed period. While a home loan is secured on the property as collateral, this should not reduce the lenders’ lending prudence because repossessing a home in the case of non-repayment of a loan is an absolute last resort which takes a lot of time, costs a whole lot of money and risks generating such grossly negative publicity that it is barely worth it and is entirely unattractive. So, to ensure this possible outcome is seldom reached; lenders vet their potential clients carefully using the following key documents on which to base their underwriting decision…

Photo ID Irish Law demands that a financial institution must establish the identity of a client before entering into any financial transaction. Of course, its logical that …

Read More

The demise of 100% Mortgages

Mortgages in Ireland continue to evolve, with 100% mortgages in Ireland now a thing of the past. We saw the 100% mortgage products die off here in 2008 because of falling asset prices, the credit crunch and liquidity problems banks are having. Assuming a mortgage will always be less than the value of a property is a misconception and for that reason many people are finding themselves in negative equity.

However, that isn’t the end of the world, if you are in negative equity the loss is ‘real’ but not ‘realised’ unless you sell up at a loss. This is perhaps not a cure but it gives some perspective to dealing with the situation. Our firm have been brokers in Dublin for quite some time, and combined we have over 100 years of experience in helping our clients get the cheapest mortgage rates and to make financial plans, however, in the current environment more than ever we are finding that broker advice is vital because there is literally so much at stake for peoples finances. Property is taking a hit, …

Read More