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, Economics, Investment, 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, Economics, Financial Advice
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Tagged accountancy, banks, dublin financial advice, financial advisors, financial planning, mortgage credit, sme accountants, sme credit
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Karl Deeter of Irish Mortgage Brokers said: “This will make it more difficult for those who can borrow to get access to funds. It raises questions about whether the money used to rescue the bank was worth it.”
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, Economics, Financial Advice
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Tagged advice, banking guarantee, carol hunt, debt forgiveness, financial news, karl deeter, sunday independent
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Once a month we get to talk to Sybil Mulcahy & Marting King on their ‘Propertywatch’ piece. This month we were looking at auctions and ECB rate increases as well as general finance.
Also filed in Accountancy, Advisors.ie In the Press, Financial Advice
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Tagged auctions, base rate, carol talon, ecb rate hikes, finance, karl deeter, martin king, mortgages, sybil mulcahy, the morning show, tv3
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Life doesn’t come with a set timetable, but the cycle of life can be reflected in the reasons for people buying and selling homes. They change jobs and move away, they have families and want bigger homes, they might grow older and downsize, or they die and it’s a probate sale.
Irrespective of what you may read or hear, there are property transactions occurring. According to the CSO the price drops are about 40% from peak. The amount of mortgage lending may is down 90%, if you are a Rothschild at heart then the adage ‘when there is blood on the streets, buy land’ is ringing in your ears.
BENEFITS to first-time buyers from drastic falls in property prices are wiped out by sharp increases in mortgage costs, new research shows. House prices have dived by 40pc since 2007, which means potential buyers would need a much smaller mortgage. But a series of mortgage-rate hikes by all lenders mean that the cost of servicing even a small mortgage has shot up. Mortgage expert Karl Deeter accused banks of capturing most of the gains for potential buyers of lower prices by pushing up mortgage costs.
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 cover the topic of Debt Forgiveness with Angela Keegan, MD of MyHome.ie on ‘The Morning Show, with Sybil & Martin’ on TV3.
Also filed in Accountancy, Advisors.ie In the Press, Debt, Financial Advice
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Tagged angela keegan, debt forgiveness, debt management, debt restructure, debt write off, karl deeter, martin king, sybil mulcahy, the morning show
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