Incidentally, could you indicate your thinking behind the 150,000 figure? I would have estimated that only a fraction of this figure would be genuinely "captive" variable rate borrowers that are not in a position to switch or fix at a lower rate.
I would have thought that 150,000 borrowers was a significant overestimate. In any event, I certainly agree that we are still talking about a lot of people.
As I pasted in another thread, the Central Bank estimates "at end-March 2015, there were 757,175 private residential mortgage accounts for principal dwellings." So not 600K, 757K, higher by about 25% unless 757K is not correct and 600K is. Did I get it wrong?
As I pasted in another thread, the Central Bank estimates "at end-March 2015, there were 757,175 private residential mortgage accounts for principal dwellings." So not 600K, 757K, higher by about 25% unless 757K is not correct and 600K is. Did I get it wrong?
My best estimate (and this is very much a ballpark figure) is that there are probably around 75,000 performing SVR mortgage accounts that would benefit from switching mortgage providers but are not in a position to do so due to limited (or negative) home equity/savings or insufficient income.
For example, I suspect the vast majority of borrowers with variable rate home loans written by AIB/EBS/Haven would not benefit from switching but I obviously can't know that for certain.
Can you show how you arrive at the figure.
These borrowers are tied in to AIB. If a new lender enters the market and charges fair rates, they will not be able to move. I agree that there is no point in them moving now to another lender.
I am trying to make the point that the Central Bank's report that competition will solve the problem is nonsense. I want to show how many people will not benefit from competition because they can't switch.
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?
We use cookies and similar technologies for the following purposes:
Do you accept cookies and these technologies?