Austrian bank Bawag to enter the Irish market?

Brendan Burgess

Brendan Burgess

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An Austrian bank has taken over a company called MoCo which is trying to enter the Irish market.

www.irishtimes.com

Wealthy Irish investors wiped out as Austrian bank buys mortgage company

Business received more than €3.65m in investment from number of high-net-worth individuals
www.irishtimes.com www.irishtimes.com

MoCo was all set to go but was put off by the "irrational pricing" by Irish banks of mortgages. As MoCo was raising funds on the money markets, it wouldn't have been profitable.

Presumably, Bawag will fund the company from deposits?

“Bawag Group completed the acquisition of MoCo earlier this year and is excited to build on the platform that the Moco team has created,” the Austrian bank said on Friday. “We find the Irish market to be attractive with positive long term macro fundamentals in place. We are currently in talks with regulators and will provide further updates in due course.”

Brendan
 
I'm really surprised that wasn't the main point of the article! It seems like BAWAG has landed themselves a free pass, but I can't help but wonder why they would go through the trouble of buying a platform if they weren't genuinely interested in entering the market.

Plus, I notice on LinkedIn that Moco has brought in a new hire recently, which possibly indicates that they're investing money into the business. I have a feeling there's more on the horizon in this area
 
Approval from the central bank given the change in backers (Bawag) do you think this will cause additional delays ? More competition is a good thing. Thoughts?
 
More news today:

The chief executive of Austrian bank Bawag confirmed on Thursday the group’s plan to offer Irish home loans through a mortgages start-up it acquired in recent months, saying the group likes the potential profit returns it could generate in the market.

[......]

A spokesman for Bawag said, however, the new owner intends to rely on its Austrian banking licence and the European Union financial services passporting regime to issue Irish mortgages. He declined to comment on a time frame for launch.
Click to expand...
 

Our Rates

www.moco.ie www.moco.ie

Fixed Rate Term​

LTV​

Fixed Rate​

APRC​

3 years< 50%4.80 %5.21 %
3 years>=50% < 60%4.80 %5.21 %
3 years>=60% < 70%4.80 %5.21 %
3 years>=70% < 80%4.90 %5.24 %
3 years>=80% < 90%5.20 %5.34 %
5 years< 50%4.65 %5.06 %
5 years>=50% < 60%4.65 %5.06 %
5 years>=60% < 70%4.65 %5.06 %
5 years>=70% < 80%4.75 %5.11 %
5 years>=80% < 90%5.05 %5.26 %
 
Someone told me in the last week that they were about to launch soon.

And Charlie Weston is reporting it in today's Indo

www.independent.ie

New lender set to enter mortgage market in coming months

A new mortgage lender has confirmed it is about to launch in this market.
www.independent.ie www.independent.ie


However, indications from brokers are that it is unlikely to undercut the existing players in terms of mortgage rates, for now.

...

“We are in the finalisation phase of our set-up and plan a soft launch in the coming months,” a spokesperson for Bawag said.
 
BAWAG took over (whatever was left) of Depfa last year IIRC. Depfa had (IIRC) banking license etc.
Curious if this might simplify the Central Bank stuff.
 
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