Rates to be 1pc lower than banks Switchers and first-timers boost Savings of €47k on €250k loan
THE biggest shake-up of the mortgage market for almost 20 years is on the way with An Post set to offer home-loans and pledging it will undercut current market rates by 1pc.
The mortgages will be available to both new customers and, crucially, switchers seeking a move from their existing mortgage provider to cut their monthly payments.
An Post plans to issue a document setting out its requirements, known as a Request for Proposals, for mortgages in December. “We would look to do a joint venture with a partner using their capability,” said Ms Byrne.
An Post is confident a partner can be selected by late Spring next year. “We will cast the net abroad. Irish banks are also welcome to submit proposals but we have also looked at international banks that hold licences here,” she said.
“We aim to be in the marketing and piloting phase towards the end of next year.”
If they make mistakes with the mortgages and go bankrupt (appreciate this would not be let happen, but just for the sake of discussion) do we just stop having a postal service in Ireland
Absolutely it does. It's not like this is a first venture outside letter delivery...I’m wondering whether it makes sense for the government organisation charged with getting letters and parcels from A to B going in search of profitable enterprise, as if they are a private sector business.
Absolutely it does. It's not like this is a first venture outside letter delivery...
They ran the National Lottery for years. And collect TV licence fees. And pay out pension and social welfare payments. And collect bill payments. And operate the Prize Bonds. And run Post Insurance. And state savings. And all those other things that keep it afloat, while they make a loss delivering letters and keeping post offices open.
I don't think their having run these enterprises in the past in any way validates them adding more? Also for many on your list - TV licence collections, prize bonds, state savings, distributing pensions/welfare payments - they are just additional government services, so sure, if An Post have shop fronts in every town this makes sense. There's a fair bit of distance between collecting TV licence fees and operating a mobile phone network or being a mortgage provider though surely?Absolutely it does. It's not like this is a first venture outside letter delivery...
They ran the National Lottery for years. And collect TV licence fees. And pay out pension and social welfare payments. And collect bill payments. And operate the Prize Bonds. And run Post Insurance. And state savings. And all those other things that keep it afloat, while they make a loss delivering letters and keeping post offices open.
Don't forget they tried a banking JV before, although the timing was terrible - PostBank.
I'm not sure if the idea works here. The Post Office in UK has a hugely successful partnership with BoI, including offering mortgages.
I'm sure An Post would be aiming for a similar model here, where they use their distribution system to sell somebody else's mortgage products. But how strong in the An Post brand here in their target market? Is it really a benefit to a foreign bank hoping to offer mortgages? Over and above what a broker network, or competitive pricing could bring?
It seems that An Post want to sell mortgages via a joint venture that would have segregated liability. If the joint venture fails, An Post would be unaffected.
On the contrary no matter what the legal status is, if this fails An Post can not walk away.
Yes and no.Not sure if you are being ironic there?
And if it does take off, 'An Post' won't be repossessing houses - it'll be whatever bank they partner up with.
If we want to keep a network of post offices open,
"1% below current rates" is suitably vague - which current rates? Ulster bank have a 2.3% fixed rate, will An Post be offering 1.3%? It seems unlikely.
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