Are we looking at a Mortgage Rates Price War?




Good summary of European and G20 mortgage rates from the Irish Times

With Danish banks heralding the advent of negative mortgage rates, which means that homeowners could be actually paid to borrow money to buy a home, Irish homeowners may understandably be expecting a similar boon here. However, is such optimism misplaced?

Earlier this month, Jyske Bank A/S, Denmark’s third-largest lender announced ia mortgage rate of -0.5 per cent, before fees, while fellow Danish bank Nordea Bank Abp, is offering 30-year mortgages at annual interest of 0.5 per cent, and 20-year loans at zero.

So is this the start of something that could eventually benefit Irish homeowners, as the European Central Bank’s quantitative-easing programme continues to make its presence felt on European markets?

Well, perhaps not.



5 year fixed >300K loan is now 2.2% (was 2.5%)
10 year fixed <80% LTV is now 2.95%
10 year fixed 80-90% LTV is now 3.15%


Just giving this thread a bump:

In the back-end of 2020, providing we’re not bartering pigs and potatoes for a vaccine, what are people’s informed thoughts on what this does to mortgage interest rates in Ireland?

Surely banks will (now and for next 12 months) be able to likely borrow at negative rates as money gets hosed at the Euro-economies?
Will any Irish banks take the opportunity to reduce to historic low rates - both to reduce the risk to their portfolios but also to pick up more of the market - in anticipation of an upturn in mid-late 2021?

Or will Irish banks just ratchet up rates to gouge out the customer cash, to compensate for 2020 losses in other parts of the business?

Anyone inside the banks know what they are thinking on this?

3 months ago, I was going to fix for 5 years, at a low KBC rate (a year left on current fixed, to get payment certainty, and originally thought rates would nudge up in Eurozone through 2025… however I havent finalised it yet.
Wondering what the landscape is likely to look like in 3-6 months…