Indo - "[Finance Ireland] to quit mortgage business as banks benefit from lower funding costs"

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Lender to quit mortgage business as banks benefit from lower funding costs

The mortgage market has suffered a blow after non-bank lender said it will stop issuing residential home loans.
m.independent.ie m.independent.ie

Lender to quit mortgage business as banks benefit from lower funding costs​

Existing loan offers will be honoured for home buyers closing a purchase

The mortgage market has suffered a blow after non-bank lender said it will stop issuing residential home loans.

Finance Ireland, which was founded and is run by Billy Kane, a former CEO of Irish Permanent and a director of Irish Life & Permanent PLC, has previously flagged its disadvantage relative to the main banks.

Banks finance their mortgage lending from cheap deposits, but non-bank lenders are forced to borrow in the wholesale money markets, making their core input more expensive when prevailing interest rates are high.
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Connard said:
Their rates are nuts.
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They sure are/were! :eek:

Mortgage Rates | Irelands largest non-bank lender. .

Irelands largest non-bank lender. We are an Irish financial services provider established in 2002. We operate in various sectors, including commercial property lending, residential mortgages, motor finance, asset-backed lending and agri-finance.
www.financeireland.ie www.financeireland.ie
Connard said:
Was there a good reason to go with them over any one else?
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Can't see any.
 
If customers are moved to Pepper and the rate that they are charged becomes unattractive then can't they just switch to another lender?
 
I know that there are generally big savings to be got from switching mortgage provider.

But at the same time it takes a lot of bandwidth and expertise that most people don’t have.

Im a lot more receptive to these arguments for things like utilities where switching really is very easy.
 
Connard said:
Their rates are nuts. Was there a good reason to go with them over any one else?
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Only reason I can see is that you have a better chance with imperfect credit, so could have been worth getting a mortgage with them and transferring once your credit record had improved

Qualifying Criteria
The Progress Plus mortgage allows for a little more flexibility around things like previous credit issues, self-employed income assessment, refinancing and buying a buy-to-let property for example.

Previous arrears on unsecured loans must be more than 6 months ago and on secured loans more than 4 years ago.
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