mortgage rates highest in euro zone

Specialun

looks like were being rightly ripped off by our banks. not too off double the average of the interest rates and considerbly lower interest rates on deposits. the government have too much vest interest and competition is poor

https://www.rte.ie/news/business/2018/0713/978439-central-bank-mortgage-rates/

McMurphy

Insurance cartels, bank cartels, vintner/ govt cartel.

#keepthecartelgoing

CeilingFly

In almost all European countries, when a mortgage holder stops paying and does not engage immediately with the bank, repossession proceedings commence within 3 months and are completed within 6 months and property ison the market.

In Ireland, there are estimated to be over THIRTY THOUSAND strategic defaulters who pay eff all and due to ridiculous laws brought in by politicians afraid of a bit of leftist sensationalist media hysteria, they can get away without paying a cent for many years.

But guess who is paying for these scammers who don't pay?

Yep. Other mortgage holders.

Go "free market"!

That's because somebody has to bail out the banks in our great "low (and getting lower) taxes for the rich, high (and getting higher) taxes for the rest" capitalist system.Who better than mortgage holders?

In 2018 in the western world, corporate socialism beats welfare socialism each time but all the morons giving out about Nelly Joyce and her 27 sons living rent free on Welfare in a castle in Westmeath would never look that direction for scapegoats. This corporate welfare is sponsored by all the squabbling nation states trying to undercut each other to give rich corporations even lower taxation.

Bring on tax harmonisation across the EU asap and financially crucifying penalties for all non-EU states which try to undermine the EU by giving low tax rates to corporations.

Anthracite

As CeilingFly says, mortgage lending here is essentially unsecured. Banks are giving hundreds of thousands to people knowing that it's almost impossible to get that money back should the customer default. That's very risky, so they have to charge more.

It's basic stuff. This is the price of moral hazard.

rgace

When we had more competition here the genius bankers competed by giving out bad loans and at unprofitable interest rates, resulting in the tax payer having to pay for their losses.

The existing situation is probably the lesser evil because at least people have the choice as to whether they will take a mortgage from the bank at this level of interest rates

lawred2

[Deleted User] wrote: »

Go "free market"!

That's because somebody has to bail out the banks in our great "low (and getting lower) taxes for the rich, high (and getting higher) taxes for the rest" capitalist system.Who better than mortgage holders?

In 2018 in the western world, corporate socialism beats welfare socialism each time but all the morons giving out about Nelly Joyce and her 27 sons living rent free on Welfare in a castle in Westmeath would never look that direction for scapegoats. This corporate welfare is sponsored by all the squabbling nation states trying to undercut each other to give rich corporations even lower taxation.

Bring on tax harmonisation across the EU asap and financially crucifying penalties for all non-EU states which try to undermine the EU by giving low tax rates to corporations.

Same applies in all these countries that have lower mortgage rates than ours. So your argument is clearly fallacious.

Weak governance and protected defaulters are why IRISH mortgage rates are higher than the EU norms.

CeilingFly

Deleted User wrote: »

Go "free market"!

That's because somebody has to bail out the banks in our great "low (and getting lower) taxes for the rich, high (and getting higher) taxes for the rest" capitalist system.Who better than mortgages.

Low taxes for the rich? Seriously?

Those earning less than 30k a year pay the LOWEST tax rates in Europe.

Those earning over €70k pay some of the highest taxes in Europe.

As for bank bailout - you're like a PBP broken record that ignores facts. With exception of Anglo and Irish nationwide, all banks have repaid the bailout in full or are almost there.

But leftist nonsense will never update a story when the new information doesn't suit their propaganda.


Btw - why have two European banks looked at entering the Irish mortgage market but decided not to?

ELM327

If someone has a mortgage and doesn't intend to move again or obtain any further credit.
There is no incentive to continue to pay the mortgage.

That's ridiculous. If we had true commercial borrowing with repossession allowed, the rates for good loans would be lower as repossession would be a threat for non payers.