"ICS Mortgage’s parent bond deal lifts competition hopes"

[Paul F]

ICS Mortgage’s parent bond deal lifts competition hopes

Cantillon: Nonbank lenders had been expected to help fill the void after the departure of Ulster Bank and KBC Bank from Irish market

www.irishtimes.com

While I hope this increases competition, ICS would need to cut their rates a lot – or at least not increase them when others do – to become appealing to borrowers again.

 

[Brendan Burgess]

Dilosk has this week launched a bond sale backed by €540 million of mortgages, in a deal that should recycle capital that had been tied up in loans handed out in recent years. If the so-called residential mortgage-backed securitisation (RMBS) transaction closes on Thursday, the hope is that it will pave the way for ICS to return to providing much needed competition in the owner-occupier market in the coming months.

It would be hard enough for new customers to trust Dilosk after the way they hiked rates.

They could only be recommended for very long term loans e.g. 15 to 20 years where the borrower has a guaranteed rate.

Brendan

 

[dublinaam]

Dilosk has this week launched a bond sale backed by €540 million of mortgages, in a deal that should recycle capital that had been tied up in loans handed out in recent years. If the so-called residential mortgage-backed securitisation (RMBS) transaction closes on Thursday, the hope is that it will pave the way for ICS to return to providing much needed competition in the owner-occupier market in the coming months.

It would be hard enough for new customers to trust Dilosk after the way they hiked rates.

They could only be recommended for very long term loans e.g. 15 to 20 years where the borrower has a guaranteed rate.

Brendan

100% right. I locked in a 5 year fixed with them at 1.95 back in April 2022. They are now up around 5.95%. I had hoped once out of fixed I'd have a choice to fall back on a reasonable variable or lock again but they will be forcing customers to move. They are now so non competitive I question if they actually want new customers.

 

[someCitizen]

100% right. I locked in a 5 year fixed with them at 1.95 back in April 2022. They are now up around 5.95%. I had hoped once out of fixed I'd have a choice to fall back on a reasonable variable or lock again but they will be forcing customers to move. They are now so non competitive I question if they actually want new customers.

I'm in the same position @dublinaam .
I came across this article today

ICS Mortgages ‘actively considering’ relaxing home loan restrictions

Signs that the international bond markets are stabilising after recent volatility

www.irishtimes.com

I've read it a couple of times and I'm trying to use my small brain to understand what's going on, is it really just an article saying that they are considering lowering rates at some unspecified time in the future, or am I missing the point?

 

[Brian McD]

Also 1.5 years into a 5 year @ 1.95% fixed rate with ICS, unless they lower rates significantly 3 years from now , I’ll be moving to AIB / BOI , cost of moving negligible also as they pay legal fees

 

[Brendan Burgess]

I don't think anyone would trust them again. People coming off fixed rates now are in real trouble with them if they can't move.

So for them to get a new customer or keep an existing customer, it would have to be a very long term fixed rate and very low - at least ten years.

Brendan

 

[Brendan Burgess]

Here is what you face today if you are coming off a fixed rate.

AIB's variable rates for comparison are 3.75% to 4.15% depending on LTV.

AIB's fixed rates for <90% are 4.8% for 3 years and 5% for 5 years.

Brendan