Now BOI increase mortgage rates...

btw is cheap credit a thing of the past completely. I mean after the credit crunch will higher spreads over ECB continue to be charged than has been the case over the last number of years?

the euribor needs to calm down and then we’ll see rational margins, at the moment it’s a race to the top and every mortgage holder is paying the price.
banks are upping margins on variables left and right, 50% of loans are on variable rates so half of the people with any sizeable debt are getting hit.

basically their loss is our loss, and while banks are quick enough to up rates i don’t know that they’ll be so fast coming back on them.

Yep, thats why I BRAYED at ye to lock into cheap trackers (eg ECB+ 0.5- ECB+ 0.8 range) while they existed.

I would think that ECB+1.0 will be a good deal by christmas, high LTV as in 70% + customers will pay over ECB+1.5 and in some cases nearly ECB+2.0 …and thats PRIME lending .

And then Mortgage Indemnity Insurance is due to be (re) introduced as a standard fee by ALL mortgage lenders this or next month.

That will be a premium of €1000 …upfront…on any loan for an average house valued at 300k or so where the LTV exceeds 70% (although they will frequently roll it into the mortgage) .

The first bank to re-introduce this will be fully Irish Owned and not a subsidiary of a foreign bank , at least thats what I understand.

how often is that premium paid 2pack?

Presumably Doctor Dan will be on the tele tomorrow wearing a hair shirt explaining this development to his customers.

I’d be suprised if someone who bought a house in the last 18 months and now finds themselves in a NE position with interest rates rising after being influenced by the VI speak, doesn’t have a tilt at these lads in the courts.

There’s plenty of ammunition around.

They knew the market had tanked in mid 2006. They had the inside information. Yet they all kept lying, spinning and talking it up.

Up until quite recently, when they have all gone rather quiet.

Talking it up when it’s still going up is one thing. But when you know that the arse has fallen out of it but you continue talking it up that’s a different matter entirely.

The first instance is potentially irresponsible. The second instance is deception.

I had ranted for people to switch to cheap trackers forever, even over good fixed rates because a margin is a margin no matter where the base rate goes, whereas once you come off a fixed you often pay for it by being given a selection of muck rates, but being a VI meant some folks (most folks) figured ‘ah sure he’s full of $hyte’

every now and then i have to say ‘told ya so!’

credit control and tranch management is the name of the game now so even if you want to move its tricky, good candidates are being turned down.

AIB still have a phenomenal rate of ECB + .6 but it’ll be gone before month end (i reckon - thats not inside info or anything).
call your broker, bank, mate who knows about this kind of stuff or whatever, but don’t sit around like a spa on a standard variable.

one last thing: Xman - excellent point, the best defence for a spindoctor right now is to put the head down, the lack of ‘good news’ they’ll come out with will only tell the true story of what
i suspect they knew all along.

2Pack: pm me where ya heard that! (about MIG’s/bonds)

Sent, they are waiting for the brokers to start charging first because they want to blame ye !!!

there are actually 2 new sets of rates: one for direct clients and one for broker clients, the broker ones are more expensive even though we have had our commissions cut! god i love this industry…

blame us how though? Those insurances are on banks and their LTV, not really something a broker can control is it?