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 Post subject: Re: Are we looking at a Mortgage Rates Price War?
PostPosted: Mon Jul 16, 2018 8:58 am 
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Homeless

Joined: Jun 16, 2015
Posts: 14
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.


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 Post subject: Re: Are we looking at a Mortgage Rates Price War?
PostPosted: Mon Jul 16, 2018 9:23 am 
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Under CAB Investigation

Joined: Apr 9, 2014
Posts: 2119
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 :)


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 Post subject: Re: Are we looking at a Mortgage Rates Price War?
PostPosted: Tue Jul 17, 2018 4:17 pm 
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Property Magnate

Joined: Jan 29, 2013
Posts: 564
KBC Bank to cut fixed mortgage rates

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

Image

Quote:
KBC Bank has today announced a reduction across its range of fixed mortgage rates for homebuyers and switchers.

The bank said it will reduce its one, two, three and five year fixed rates by between 0.25% and 0.55%, while it will maintain its market leading 10-year fixed rates.


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 Post subject: Re: Are we looking at a Mortgage Rates Price War?
PostPosted: Mon Sep 24, 2018 12:40 pm 
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Property Magnate

Joined: Aug 12, 2009
Posts: 504
And here comes that rumoured new entrant --

Quote:
An Post to enter mortgage market with low interest rates
Offers will be available to both new and switching mortgage holders

An Post is to enter the Irish mortgage market next year with interest rates which are substantially lower than those currently available.

The move was given the green light by the An Post board at a meeting last week and will see rates of 1 per cent less than what is on offer, and made available to both new and switching mortgage holders.

A rate cut of 1 per cent on a €300,000 mortgage could save a borrower as much as €60,000 over the lifetime of a 30-year loan. The new offer is also likely to be welcomed by cash-strapped borrowers.

The move will significantly shake up the Irish mortgage market.

While An Post does not have a banking licence, it will start offering the mortgages as part of a joint venture with an as yet unnamed partner. More details of its proposals will be made available before the end of the year.

...

According to figures from the Central Bank, the average rate of interest on a new home loan in the Republic in July is 3.2 per cent, while the average across the euro zone put at just under 1.8 per cent.

...
https://www.irishtimes.com/news/ireland ... -1.3638913


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?


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 Post subject: Re: Are we looking at a Mortgage Rates Price War?
PostPosted: Mon Sep 24, 2018 1:07 pm 
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Holiday Home Owner

Joined: Sep 9, 2017
Posts: 300
bokonon wrote:
Are the banks going to allow this to happen?


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


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 Post subject: Re: Are we looking at a Mortgage Rates Price War?
PostPosted: Mon Sep 24, 2018 6:12 pm 
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Property Magnate

Joined: Oct 12, 2014
Posts: 631
Location: Dublin
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.


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 Post subject: Re: Are we looking at a Mortgage Rates Price War?
PostPosted: Mon Sep 24, 2018 11:29 pm 
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First Time Buyer

Joined: Oct 9, 2009
Posts: 91
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.

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


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 Post subject: Re: Are we looking at a Mortgage Rates Price War?
PostPosted: Tue Sep 25, 2018 11:24 am 
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Property Magnate

Joined: Oct 12, 2014
Posts: 631
Location: Dublin
the_wrong_thong wrote:
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.

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

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.


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 Post subject: Re: Are we looking at a Mortgage Rates Price War?
PostPosted: Tue Sep 25, 2018 11:29 am 
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Old Time Landlord

Joined: Jan 31, 2007
Posts: 368
Location: Middle Earth
FTBer wrote:
the_wrong_thong wrote:
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.

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

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.


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?


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 Post subject: Re: Are we looking at a Mortgage Rates Price War?
PostPosted: Tue Sep 25, 2018 11:30 am 
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Property Magnate

Joined: Oct 12, 2014
Posts: 631
Location: Dublin
owenm wrote:
FTBer wrote:
the_wrong_thong wrote:
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.

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

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.


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?

I hope that’s the case. We’ll see.


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 Post subject: Re: Are we looking at a Mortgage Rates Price War?
PostPosted: Tue Sep 25, 2018 12:12 pm 
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Too Big to Fail
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Posts: 4812
Location: the nearest faraway place
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

Quote:
The downsizing of the management team and restructuring of the business into two new distinct businesses: An Post Mails and Parcels and An Post Retail (Post Offices), each with full P&L responsibility and focus on product development and operational excellence.

http://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.

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Those who don't study history are doomed to repeat it. Those who do study history are doomed to watch everyone else repeating it.


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 Post subject: Re: Are we looking at a Mortgage Rates Price War?
PostPosted: Tue Sep 25, 2018 8:52 pm 
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Under CAB Investigation

Joined: May 12, 2012
Posts: 2109
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.......


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 Post subject: Re: Are we looking at a Mortgage Rates Price War?
PostPosted: Tue Sep 25, 2018 9:25 pm 
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Too Big to Fail
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Joined: May 6, 2008
Posts: 4812
Location: the nearest faraway place
Skippy 3 wrote:
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.......


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.

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Every single frozen corpse in the Death Zone on Everest was once a highly motivated person.

Those who don't study history are doomed to repeat it. Those who do study history are doomed to watch everyone else repeating it.


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 Post subject: Re: Are we looking at a Mortgage Rates Price War?
PostPosted: Thu Sep 27, 2018 12:51 pm 
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Posts: 4812
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Quote:
Bankinter is set to become the first foreign owned bank to enter the Irish market since the financial crash, in a deal which could potentially pave the way for the Spanish bank to enter the Irish mortgage market as An Post searches for a new partner for its planned venture. The Madrid-headquartered bank has just cut rates on its 20 year fixed-rate mortgages to 1.99 per cent.
Earlier this week the Spanish bank said it would buy the banking operations of EVO Banco in Spain and its consumer credit affiliate in Ireland, AvantCard, from Smart Holdco, an entity owned by the US fund Apollo. The financials of the deal, which is subject to regulatory approval, were not disclosed.

Apollo entered the Irish consumer credit market back in 2012, when it acquired MBNA’s Irish credit card business from Bank of America. Initally, Avantacard, as it became known, was closed to new business, but opened up in 2017 and since then it has ramped up its offering, as well as moving into personalised pricing for credit cards and personal loans. It currently offers credit cards through Chill.ie, one of Ireland’s largest insurance brokers, as well as more recently An Post, with credit cards and loans set to be rolled out from early 2018. Today Avantcard has 151,000 Irish customers, 145 employees, €280 million in revolving card and deferred payment receivables, and €66 million in personal loans.
Now it has been suggested that with its new owner, AvantCard could be a potential partner for An Post’s proposed mortgage venture.

https://www.irishtimes.com/business/fin ... -1.3643309

So looks like more than rumours.

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Every single frozen corpse in the Death Zone on Everest was once a highly motivated person.

Those who don't study history are doomed to repeat it. Those who do study history are doomed to watch everyone else repeating it.


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 Post subject: Re: Are we looking at a Mortgage Rates Price War?
PostPosted: Thu Sep 27, 2018 2:14 pm 
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Neo Landlord

Joined: Feb 18, 2009
Posts: 266
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.


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