KBC to pump €1bn into mortgage market

KBC to pump €1bn into mortgage market - Jon Ihle -> tribune.ie/business/news/art … ge-market/

And people on here keep telling me that the banks cannot lend in Ireland because they haven’t got the money.So house prices must fall.? :confused:

If there’s say, 50bn worth of housing stock on the market, and KBC pump in 1bn, what kind of effect do you think that’s going to have? :wink:

I mean, christ, 1bn is only about 4,000 mortgages on houses at the current average house price!

Make it 10bn instead of 1bn and maybe I’ll look up from under my glasses.

Read the report again:
“a switcher mortgage and offset mortgage… KBC had now reversed course and was “beating the bushes” for the “right type” of borrower.”

This for me was the most interesting development of the weekend.

The real danger for the Irish banks, given their current cost of funding, is that foreign banks that can fund themselves cheaply come in and ‘steal’ the best customers - low LTV (so securitisable), excellent payment records, secure jobs. The mortgage books of the Irish banks are then under pressure from both high and low quality sides leaving them a rump of underwater, but performing mortgages. This is a very dangerous and unstable position.

Of course, it also gives the lie to those who say that the cost of funding in Ireland will get significantly out of line with the rest of Europe before someone comes in. For solvent borrowers, there will always be a euro mortgage available at a rate somewhere around what other people in Europe are paying. Ireland, with its standard of variable rate mortgages, is attractive to many banks who have a similar variable funding cost.

I suspected that this might happen when PTSB first announced SVR increases last July.thepropertypin.com/viewtopic.php?p=277980#p277980

It’ll probably be the only development in Ireland this year YM, boom, boom :mrgreen:

(Exit stage right)