Why are average Irish mortgage variable rates 82% higher than our European neighbours ?

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IdesofMarch said:
Fact is, Irish borrowers are being ripped off by Irish banks
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Again, Irish home loan borrowers are, on average, paying the same rates as their peers across the Eurozone.

We have already explained why rates charged on new home loans are higher than the Eurozone average.
 
Sarenco said:
I've already provided a link to the Central Bank's latest retail interest rate statistics.
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I mean from a reliable source with no skin in the game, this is the same Central Bank whose previous Governor in relation to the tracker mortgage scandal, said, nothing to see here.
 
IdesofMarch said:
I mean from a reliable source with no skin in the game.
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The Central Bank has no "skin the game" - do you even know what that phrase means?

The linked interest rate statistics are complied in accordance with very detailed regulations and then feed into wider ECB statistics.
 
Sarenco said:
Again, Irish home loan borrowers are, on average, paying the same rates as their peers across the Eurozone.

We have already explained why rates charged on new home loans are higher than the Eurozone average.
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I’ll pay 3.18% variable on my mortgage whilst my counterparty in Europe will pay 1.8%, but on average (weighted average), we as a nation, all pay the same average mortgage rate as our European neighbors, sure that’s alright so. Your now having a laugh!
 
Sarenco said:
The Central Bank has no "skin the game" - do you even know what that phrase means?

The linked interest rate statistics are complied in accordance with very detailed regulations and then feed into wider ECB statistics.
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Lies, damn lies, and statistics.
 

Please tell me this is not a fact, statistically speaking.
 
All the so called banker advocates are gone mysteriously quiet. I say again, tomorrow, if I go and get a variable rate mortgage from an Irish bank, the variable rate will be 3.14% (average), borrowers in Europe will get the same variable rate mortgage product for 1.8% (average). Even a fool can work out that you will pay more for your mortgage here than in Europe. Sarenco, Red Onion and Gordon Gekko might try to persuade otherwise (Weighted statistical averages and the like) but I will let the readers use their own common sense.

The great Irish Mortgage Rip Off continues!
 
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IdesofMarch said:
Even a fool can work out that you will pay more for your mortgage here than in Europe. Sarenco, Red Onion and Gordon Gekko might try to persuade otherwise
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I would do no such thing. It's obvious that new lending rates here are higher than in other European countries. Nobody had said otherwise. Why would I try persuade people otherwise?
 
RedOnion said:
I would do no such thing. It's obvious that new lending rates here are higher than in other European countries. Nobody had said otherwise. Why would I try persuade people otherwise?
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I said might, but thank Red Onion for agreeing with me on this issue.
 
Now that Sarenco and Gordon, have had a little moan about the word NEW being omitted from the title, can we focus on why mortgage rates are higher for people taking out loans in Ireland in 2018 than they are in the rest of the Eurozone.

There seem to be 3 possible factors.

1. They are not in fact higher once arrangement fees and cash back offers are taken into account. Perhaps this is so but I am not convinced.

2. The difficulty for mortgage lenders to enforce their security, is reflected in a higher rate being demanded to cover the additional risk.

3. The large number of existing tracker mortgages means that the banks can only recover their costs against variable rate mortgages. The trackers make only a small or no contribution to the banks overheads, and the banks cannot do anything about this. The banks have to recover their costs, less whatever small or zero contribution the tracker mortgages give, across the relatively small variable rate mortgage pool.
 
IdesofMarch said:
Even a fool can work out that you will pay more for your mortgage here than in Europe. Sarenco, Red Onion and Gordon Gekko might try to persuade otherwise
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Why would I do that?

It's perfectly clear that rates offered on new floating rate home loans are higher here than the Eurozone average and I've already said as much on this thread.

I have also tried to explain to you why this is the case but you seem to be more interested in continuing with your childish anti-banker rantings.
 
cremeegg said:
Now that Sarenco and Gordon, have had a little moan about the word NEW being omitted from the title, can we focus on why mortgage rates are higher for people taking out loans in Ireland in 2018 than they are in the rest of the Eurozone.
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The title of this thread would be grossly misleading even if it only referred to new floating rate home loans.
cremeegg said:
They are not in fact higher once arrangement fees and cash back offers are taken into account. Perhaps this is so but I am not convinced.
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I don't believe anybody suggested that was the case - I certainly didn't.
cremeegg said:
The large number of existing tracker mortgages means that the banks can only recover their costs against variable rate mortgages.
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The majority of new home loans drawn down these days are actually fixed rate mortgages. The effective rates on these loans are typically substantially lower than average floating rates on new home loans.
https://www.askaboutmoney.com/threads/fixed-rates-best-buys.204420/
 
The majority of new home loans drawn down these days are actually fixed rate mortgages. The effective rates on these loans are typically substantially lower than average floating rates on new home loans.
https://www.askaboutmoney.com/threads/fixed-rates-best-buys.204420/[/QUOTE]

With all due respect Irish borrowers are also being ripped off by Irish banks in relation to the current fixed rate mortgages that they are being offered. For example, a ten year fixed rate from ABN AMRO (Dutch Bank) is 2.04% or alternatively you could choose their rival Rabobank's 10 year fixed mortgage rate offering at 1.80%. The 5 years fixed mortgage rates are even cheaper circa 1.50%.
 
It would be interesting to know how many mortgages that are on tracker rates are considered non performing - I would hazard a guess that its far lower than fixed/svr mortgage holders .

In France, from the time you default on your mortgage to the time it is repossessed and on the market it is less than 6 months and the costs involved in the process are minimal.
Here its 6 years and costs are astronomical. And with up to 25% of some lender's mortgages non performing, its the variable rate mortgage holders paying for the free living of these non payers.

Didn't sparkcasse bank give this as the primary reason for not offering mortgages here?
 
For example, a ten year fixed rate from ABN AMRO (Dutch Bank) is 2.04% or alternatively you could choose their rival Rabobank's 10 year fixed mortgage rate offering at 1.80%. The 5 years fixed mortgage rates are even cheaper circa 1.50%.
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The Dutch mortgage market is actually good example of what we could and, IMO, should have here.

In the Netherlands, a lender can enforce its security interest and sell the secured property by public auction, without a Court order, within weeks of a borrower defaulting. As a result, default rates in the Netherlands are some of the lowest in the world and the Netherlands has one of the most competitive mortgage markets in the world.

That, of course, results in low mortgage rates.
 
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Yes, imagine the Dutch system over here, the Irish Bankers would have repossessed thousand more homes at this stage, including those tracker rate mortgage holders that where unlawfully put on variable rates etc (for whatever reasons) and subsequently went into arrears, lovely thought Sarenco.
 
So you want Dutch mortgage rates without their approach to dealing with defaulting borrowers.

That's just wanting your cake and eating it.
 
Dutch bankers don't do what Irish bankers have done, (I suppose they act honourably). If they did, they would in Jail in the Netherlands.
 
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