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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: 2128
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: 565
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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Old Time Landlord

Joined: Sep 9, 2017
Posts: 359
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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“....the power to dream, to rule, to wrestle the earth from fools”


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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: 632
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: 632
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: 385
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: 632
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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