Mortgages with a total value of €1.3bn were now in arrears of three months or more. This represents 16pc of its €7.8bn buy-to-let mortgage book — up from 10pc in December. Low rents and difficulties finding tenants mean many buy-to-let investors lost money on their properties, director of Irish Mortgage Brokers Karl Deeter said.
Also filed in Accountancy, Advisors.ie In the Press, Banking, Investment, Mortgages, property tax, Property tax, Savings, Section 23
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Tagged bank owned property, bank repo, distressed seller, forced sale, liquidation sales, repossession, vendors in liquidation
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We were mentioned in the Irish Independent (via our sister company): THE fact that private investors are prepared to put money into Bank of Ireland does not mean the bank will suddenly start lending to house buyers and small businesses, experts said yesterday. Although the investment move was welcomed, fears were expressed that personal and business customers would be hit with higher charges. This was because the bank was still short of funds, director of Irish Mortgage Brokers Karl Deeter warned. And there are fears that variable rate customers will now be hit with hefty rises in rates. Mr Deeter said there would be no immediate flow of credit for house buyers and small firms.
Also filed in Accountancy, Advisors.ie In the Press, Banking, Financial Advice, Mortgages
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Tagged accountancy, banks, dublin financial advice, financial advisors, financial planning, mortgage credit, sme accountants, sme credit
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In answer, let me quote Irish economist Karl Deeter, who recently said: “I think debt forgiveness is generally a terrible idea, and have only become an advocate as I watched a system evolve whereby investors have been insulated from taking loss at the expense of largely innocent bystanders [taxpayers]. In chasing the crisis down this rabbit hole we have perhaps avoided creating zombie banks, but we are creating zombie households in their wake.”
He continued: “The idea that this is a ‘punishment to the prudent’ [debt forgiveness] is a mistake. If so, then where is the ‘prudent rage’ against people receiving taxpayer-funded Mortgage Interest Supplement, which is paid to more than 18,000 households, while on the same street another person slaves to make their payments?
“Or the ‘prudent backlash’ by people who stayed out of the market entirely, against taxpayer money spent on rent supplement, which allows a person around the corner to enjoy a similar property for free?”
Also filed in Accountancy, Advisors.ie In the Press, Banking, Debt, Financial Advice, Mortgages
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Tagged advice, banking guarantee, carol hunt, debt forgiveness, financial news, karl deeter, sunday independent
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We were pleased to feature on the RTE 1 O’Clock news to talk about interest rates and the near term outlook as well as the effects that any change might have on Irish households. Rates remained unchanged at the most recent ECB meeting but that is widely expected to be a short term decision with a rate hike in July expected.
We were pleased to feature in studio with Sharon Ni Bheolain of Six One news on the topic of the CSO Property Price index.
Fred Harrison talks about the way in which infrastructure spending can result in a wealth transfer which largely goes uncollected, compelling viewing.
You’ve a 25-year tracker mortgage of €250,000. If switching from your tracker rate of 2.25 per cent to the standard variable mortgage of 4.19 per cent, you would need a €47,000 payoff to break even, according to Karl Deeter, head of customer advice with advisors.ie. You would have to use this €47,000 to reduce the amount you are borrowing — so instead of borrowing €250,000, you borrow €203,000.
Also filed in Accountancy, Advisors.ie In the Press, Financial Advice, Mortgages, Savings
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Tagged accountants, advisors, financial advice, financial advisors dublin, karl deeter, louise mcbride, trackers
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When a bank holds a loan worth €200,000 it is an asset valued at that figure. Even if the security for the loan is a property that has fallen in value to €100,000.
So it is no surprise that banks will do whatever it takes in order to avoid turning their asset into a 50 per cent loss. In fact, even if the loan getting into trouble it doesn’t get written down to €100,000 -that only happens after the asset value has been realised. This is in part why we have three repossessions per 100,000 mortgages, while Britain has 65 times more, at about 200 per 100,000. At the same time, there has been huge political pressure via politicians and the Central Bank (formerly the Financial Regulator), via the thrice reworked Code of Conduct on Mortgage Arrears to ensure that we don’t allow people to get their homes repossessed as long as they engage’ with the lender.
Also filed in Accountancy, Accountant, Advisors.ie In the Press, Banking, Debt, Financial Advice, Mortgages
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Tagged debt forgiveness, distressed debt, distressed mortgage, distressed seller, imb, mortgages, problem loans, provision for bad debt, writedowns
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Wednesday’s Today with Pat Kenny (RTÉ Radio 1, weekdays) provided a more less heartening illustration of contemporary mores. The economist Jim Power and the mortgage broker Karl Deeter were in the studio to discuss AIB’s tentative debt-forgiveness proposals for distressed mortgage holders.
Also filed in Accountancy, Advisors.ie In the Press, Banking, Debt, Financial Advice, Mortgages
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Tagged acca, accountants, debt forgiveness, dublin accountancy, financial, irish mortgages, jim power, karl deeter, pat kenny, pat kenny show, provision for bad debt
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Midweek on TV3 had a segment on debt forgiveness and it featured some commentary from Karl Deeter of our company. The piece is above, the topic is provocative!
