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Hotel owner with €25m loan refuses repossession order

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    #32
    handlemaster
    Registered Users Posts: 6,003 ✭✭✭handlemaster


    The_Conductor wrote: »
    zreba wrote: »
    Trackers are still popular in Europe, banks here miscalculated the risk and put too low premium % on top of the ECB rate and that's why they struggle now. European banks put similar premiums to Irish banks, but risks in most European countries did not materialize. Variable rates are kind of a safety switch for Irish banks as banks can change the interest rates as they wish and whenever they wish. They hit a trouble - they increase variable rates and it's all legal as variable rates aren't linked to any international index or ECB rate. Mortgage holders will pay.

    The norm in most European countries- is an interest rate fixed for the duration of the mortgage- or alternatively a variable rate product- but not a 'tracker' mortgage (a la what us Irish would recognise a tracker mortgage to be).

    Ireland was not unique in the manner in which we embraced tracker mortgages- but the extent to which they superceded every other mortgage type- and the complete lack of a fixed rate product for the term of the mortgage- even today- are startling- if you compare Irish products with those on the Dutch, Belgian or German markets (for example).


    Yea its hard to believe we still dont have fixed term mortgages for the term of the mortgage. The amount been borrowed by the bank is fixed I believe so this should be passed on with their costs plus profit


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    #33
    Marcusm
    Registered Users Posts: 10,320 ✭✭✭✭Marcusm


    The_Conductor wrote: »
    There is an argument to be made that the property in question is not necessarily entitled to the protections of the family home- given it is run as a successful Bed and Breakfast.

    There is no argument; it doesn’t qualify. The individuals present themselves as the owners of the property when it has always been owned by a company. They have no protection under the Family Home Protection Act and this suited them when they wanted a large commercial loan.


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