Are we looking at a Mortgage Rates Price War?


#120

So KBC have lost the redemption cheque which was signed for as “received” last week. They proceeded to debit my account again yesterday for a mortgage repayment.

So, at the moment I now have 2 mortgages. I am currently lodging a formal complaint with them due to the additional interest that should not have been accrued and the hours I’ve wasted on the phone bouncing between my solicitor and particularly them in the past couple of weeks.

My solicitor opted to pay by cheque since bank didn’t even post account details on the redemption letter.


#121

RTÉ article: Irish mortgage rates highest in euro zone. Average for new Irish mortgages is 3.21%. Euro average is 1.8%.lowest in Finland at 0.8%

Price war me… Eye.


#122

Yes - In Finland your house will be reprocessed if you don’t pay your mortgage.

Ireland is the only country in the world that has a need to track mortgage arrears > 720 days :slight_smile:


#123

KBC Bank to cut fixed mortgage rates

rte.ie/news/business/2018/0717/979225-kbc-bank-mortgage-rates/


#124

And here comes that rumoured new entrant –

1% lower than KBC’s 2.5% (I think that’s the lowest on the market) will make Ireland suddenly very competitive in European terms. Are the banks going to allow this to happen?


#125

Normally, no. But the Irish govt owned AIB and PTSB are market makers in the Irish Mortgage market. The others will then have to follow, and FG can then claim they’ve delivered cheap housing. Everyone’s a winner XX


#126

If any of you are in the know out there in the Mortgage industry, how credible is this AnPost story?
And what is the timeline?
Are we talking definitely in Q1 next year, or it “might” happen by Q4 - but then never will?

Asking because thinking of breaking my fixed rate mortgage to get an even lower fixed rate mortgage with KBC.
But would happily hold off a couple of months if I knew another credible option was close.


#127

An Post is confident a partner can be selected by late Spring next year…
“We aim to be in the marketing and piloting phase towards the end of next year.”

She added it would then target the peak house-buying period in spring 2020.

independent.ie/business/personal-finance/property-mortgages/an-post-to-offer-borrowers-cheaper-mortgages-37344759.html


#128

That’s still quite some distance away so.

Which likely also means that the company / AnPost will be full to the hilt with new mortgage business right at the peak of the current bubble… so that the State will be dragged into the next mortgage crash again directly? Rather than just our usual Irish way of backstopping the banks.


#129

An Post aren’t seeking a banking license, they are partnering with an as yet unknown - this ‘unknown’ is underwriting the mortgage and bears the risk - no?


#130

I hope that’s the case. We’ll see.


#131

Well An Posts last foray into a banking partnership went splat with the collapse of Fortis.

However this whole thing really just seems like kite flying considering the An Post group needed a bailout last year

anpost.ie/AnPost/MainContent/Abo … pose=basic

Sounds like the Post Offices part will become the host to a commercial bank, which is shít considering that when I’m buying stamps in England I’m constantly bombarded with sales pitches for broadband packages, insurance cover etc…

I’m highly dubious anything with come of this considering An Post group needed a 30m investment last year to help restructure after 8m losses I think.


#132

So let me get this straight. An Post Group was on the verge of bankruptcy last year and needed a rapid increase in the cost of stamps rammed through to keep the wolf from the door.

Now it’s going to offer mortgages - a business it has no background in whatsoever - at a price that the incumbents can’t match?

I mean it must be true because the Minister for Communications tweeted the story, but still…


#133

There’s two parts to An Post I think, the post offices are profitable (minus the small legacy small town franchises) but the actual mail side isn’t making money afaik. I don’t know if the mail side will be privatised but judging by the drop in physical mail I’ve gotten in the last two decades I can’t see it been viable as is. If post office lockers were available like in Australia I’d be happy with that.


#134

irishtimes.com/business/fin … -1.3643309

So looks like more than rumours.


#135

a welcome development if true, the more entrants we can get the better. I am in the process of switching from PTSB to EBS with a broker and i mentioned about switching again next year to him. He has heard BOI have turned down some switchers based on them switching previously in the last 12 months. his take is the cashback carrot will soon be gone as banks wise up to people who switch regularly as opposed to someone who just avails of it as a once off.


#136

i doubt bank inter are the bank to come in and shake up our mortgage market, they are a nice spanish bank that normally focus on high net worth individuals.


#137

Finance Ireland announces entry into Irish residential mortgage market

financeireland.ie/announcem … ge-market/


#138

Friday Interview: Billy Kane, chief executive of Finance Ireland

irishtimes.com/business/fin … -1.3706886


#139

AIB cutting some fixed rates

But per AAM, even after the cuts they still aren’t the best in the market