Irish Independent - SVR Mortgage rates likely to rise: stress test to 6%-7%?

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canicemcavoy

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People with standard rate mortgages should lock in to a fixed rate, as these rates are at historically low levels, a report by [broken link removed] of Irish Mortgage Brokers, advises.
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Anyone looking at mortgages currently should really be stress-testing themselves to see if they can afford one with 6 to 7 percent interest rates.
 
Re: Independent - Mortgage rates likely to rise

Yep, these rises are where we see the true effects of all the wage cuts, pension levies etc.. it is really going to hit the proverbial fan then..
 
Re: Independent - Mortgage rates likely to rise

At this stage surely the government own enough equity in the banks to prevent this happening.

It is terrible that after getting the country in the mess that it is in, the public sector workers have had to take pay cuts and additional levies to support the banks and now they are having to take an oppertunistic rate increase from the banks now the deposit gurantee scheme has been extended.

The money that was put into the banks did not make any more credit available, rather they invested the money - our money where they would get a higher return.

It is time people in the banks are made accountable for the mess and refuse to continue to bail them out.
 
Re: Independent - Mortgage rates likely to rise

canicemcavoy said:
Anyone looking at mortgages currently should really be stress-testing themselves to see if they can afford one with 6 to 7 percent interest rates.
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Given that:

longer term rates are always around 4%
allowing for the bank's margin
the possibilty that shorter term rates could rise above the long term rate

I think everyone should be stress tested at the 7% rate all of the time
 
Re: Independent - Mortgage rates likely to rise

DingDing said:
At this stage surely the government own enough equity in the banks to prevent this happening.
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If we force the banks to keep their interest rates lower than they should be, the gain made by the mortgage holder may simply be at the cost to the taxpayer. I would rather than banks be allowed make a reasonable profit so that they are less likely to continue to rely on life support from the taxpayer
 
Re: Independent - Mortgage rates likely to rise

There must be clarity afforded to Mortgages and Mortgage holders with respect to this article. Sure enough Interest rates will rise in line with the ECB. However those with mortgages with Ulster Bank and Bank of Scotland must question as to why these Banks are charging such high variable rates. As they are not a main part of the Irish Banking system, but the UK system, read how much the UK Government has had to inject into these Banks to keep them afloat and solvent. Literally billions and the easiest way to help recoup this money is to charge over and above to the Bank's external customers, away from their main scope of their client base.

To maintain a real view of the rates, look at KBCs rates which are part of a huge and massive European Bank, who are best able to predict forward interest rate movements moreso than the plebs operating here.
 
Re: Independent - Mortgage rates likely to rise

chrisboy said:
Yep, these rises are where we see the true effects of all the wage cuts, pension levies etc.. it is really going to hit the proverbial fan then..
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+1 and then we'll all see what properties are REALLY worth. Because anyone close to the edge, payments wise, will be forced into selling for whatever they can get. DINGDONG if you think this Gov will do anything for you , i would'nt hold my breath!
 
Re: Independent - Mortgage rates likely to rise

DingDing said:
At this stage surely the government own enough equity in the banks to prevent this happening.
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Um, prevent what happening? The European Central Bank increasing interest rates? We're a country of 3 million people in a super-state of 830 million.
 
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