Brendan Burgess
Founder
- Messages
- 52,192
We acknowledge that variable rates in Ireland are amongst the highest in Europe, but so also are mortgage risk weights, a key input for pricing by the banks. Irish mortgage risk weights (under IRB) range from 27-43% for the main domestic banks. This compares to c.15% in the UK, c.10% in Scandinavia and c.20% in Spain. Also, collateral access for the banks in repossession typically takes longer than in other jurisdictions and Irish term funding costs are higher (lower ratings). As such, rates in Ireland should be structurally higher than peers.
If it's government policy to delay repossessions to protect certain people, then maybe they should pay the price of the policy directly rather than a subset of mortgage holders.
I hope it's not the case that there are many BOI borrowers that are still paying a variable rate of 4.5%, when they can now fix for a period as short as one year at a far lower rate.
I sort of gave up, I don't have the time for all this repetitive documentation to switch. Everything from marriage certs to pension statements god knows what next, they make it difficult, no online web Forms either, everything is paper and scanning and non-traceable so you end up following up with emails and phone calls, no pre-approval in principle either.
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