That must be good news for people on SVRs. Banks want high SVRs to subsidise poorly performing loans, but presumably they would prefer to drop the SVR rates rather than be left with a higher proportion of bad loans. It really needs people to start voting with their feet to move to KBC, and now Ulster, to overcome the present inertia.
Noonan will do as little as possible to lower SVR-like the canny farmer he thinks he is,he hopes the sight of a couple of fatted banks with high SVRs will have fordeign buyers drooling to get a piece of de action-
No doubt these banks will view the rates as unsustainable and will not offer a premium as a result.
If you want competition you need to address the repos and the utter insanity and hand wringing that goes on around it-no fordeign bank will come within an asses roar of the place till its clear cut.
Fine Gael will I think pay dearly for this utter act of financial buggery it has inflicted on the SVR class.
Glad to see UB handing over the processing of mortgages to the experts,my experience of dealing with the Ulster Bank in blanchardstown two years ago was nothing short of incompetence piled on stupidity and sheer utter fucking uselessness and the reason I closed all my accounts with them.
PTSB managed the same process with an absolute minimum of fuss and drama.
Who wants to lend money in Ireland at low interest rates? The default risk in this country is many multiples of what it was historically thanks to the land league, irish non mortgage payers institute or whatever it’s called.
I wouldn’t risk private capital lending into this place for less than 20% given the lack of recourse now in irish mortgages.
How are the banks supposed to raise capital and pay a return on capital if they cannot price the credit risk?
Heard a discussion on this on rte radio on friday with some fianna failer and a bunch of journalists and it truely made me despair in it’s moronic understanding of risk and capital markets.
In some cases possibly but in the vast majority of cases I suspect that the politicians in question simply have no understanding of any matters financial, let alone how banking or capital markets function. Ireland consistently elects imbecilic, moronic, gombeen, chancer, stroke pulling culchies
The best rate is 3.55% with KBC. Where possible, mortgage holders should be switching to this rate. That is unless you are a KBC customer, as KBC won’t let their existing customers have this rate, so KBC existing customers are best switching elsewhere.
It strikes me as insane that our media can hold two separate points of outrage simultaneously - and resolutely refuse to connect them.
“It’s wrong I tells ya that de poor peoples not payin’ the mortgage are being threatened by de banks - this must stop!”
“It’s wrong I tells ya that de poor peoples payin’ the mortgage are payin’ through the nose on SVRs - this must stop!”
And who is a significant shareholder, if not the largest shareholder, in both of these “institutions”? Allowing this scale of profit?
Ah, the Government.
So, really, we should be frustrated with the insanity of the Government’s strategy which is working out great (for them) at the moment - as the taxpayers and mortgage payers keep forking over the dough to keep the whole thing afloat.
as repossess doesn’t work in Ireland because of both government and judges maybe an alternative to mortgages like HirePurchase where ownership never transfers to buyer until final payment might work but you’d still see judges unwilling to evict those who don’t pay.
Just for anybody who might be interested, KBC have “quietly” changed this rule. I spent months fighting with them over it, and I was told that the rule is changing for all customers (changed in March). The current account isn’t as functional or user friendly as AIB, but the savings from the 0.2% current account discount were significant.