An Post to offer mortgages 1% below current rates

Brendan Burgess

Founder
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41,415
Reminds me a bit about the noise and discussion from "Frank Mortgages". They made some announcements as well which went exactly nowhere.
Hi man

I don't think that this is fair.

They invested their own money in setting up the operation.
They got commitments from overseas funders.
It took a year to get outline approval from the Central Bank.
And at the last minute, one of their key funders pulled out.
To the best of my knowledge, they made no announcements at all.

Brendan
 

newirishman

Frequent Poster
Messages
794
Hi man

I don't think that this is fair.

They invested their own money in setting up the operation.
They got commitments from overseas funders.
It took a year to get outline approval from the Central Bank.
And at the last minute, one of their key funders pulled out.
To the best of my knowledge, they made no announcements at all.

Brendan
I wasn't trying to slag them off - just trying to highlight how challenging it can or will be to get this going. I have no doubt that the team behind Frank Mortgages was serious about market entrance - but making it viable and worth the investment is a different story.
 

Brendan Burgess

Founder
Messages
41,415
Ah, I see.

It will be very challenging whether it's Frank or An Post. However, it seems to me that An Post has very little idea of what they are talking about. I would be delighted to be proven wrong and would welcome An Post offering mortgages at 1.3% fixed for 20 years.

Brendan
 

Brendan Burgess

Founder
Messages
41,415
18 months is a long time in the mortgage market


The company, led by chief executive David McRedmond, is believed to be focused on securing a joint venture with an overseas lender not currently in the Irish retail market. The spokesman declined to comment on potential partners.
 

Brendan Burgess

Founder
Messages
41,415
It's bizarre that they were planning to launch mortgages in the first half of 2020 when they had not even lined up a partner bank!

This is not going to happen.

If a foreign bank does want to enter the Irish market, why would they choose An Post as a partner?

Why don't An Post just announce straight out that they investigated the market but could not interest anyone in it?

Brendan
 

RedOnion

Frequent Poster
Messages
4,597
Absolutely. If they were serious about it, there's never been a better time to enter, and cherry pick the best parts of the market.
 

NoRegretsCoyote

Frequent Poster
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1,554
I dont see what advantage it will be for An Post to have its "network" to provide a mortgage business. Its not as if people will pick up a mortgage off the shelf when they go to buy a stamp.
I'm a bit sceptical too. The last post office I was in had 25sqm of floor space. Most of them don't have (and never will have) the space to carry out consultations with potential customers.

Certainly there is scope for marketing material in the branches, but I can't see much more.
 
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