Does it not jar with the fair rates campaign which in summary is looking for equality for all new and existing customers, allowing for some variation in price based on LTV?
If one customer rings up and gets a better rate for whatever reason, is it fair to other customers with the same loan and LTV?
The risk of default on a 90% mortgage is much higher than the risk on a 50% mortgage
Never agreed with this and realistically most good risk analysts would take a similar view. The priority aspect of risk assessment is ability/willingness to repay. Security/collateral is always regarded as a secondary risk. Historically up until the 2007 crash Ireland had never experienced a serious reduction in house prices. Default risk as opposed to risk of loss post default is largely irrelevant to security value.The risk of default on a 90% mortgage is much higher than the risk on a 50% mortgage.
Never agreed with this and realistically most good risk analysts would take a similar view. The priority aspect of risk assessment is ability/willingness to repay. Security/collateral is always regarded as a secondary risk.
Historically up until the 2007 crash Ireland had never experienced a serious reduction in house prices.
Seems people thinks it's fair that individuals get the best deal they can. Taking that a step further, new customers or switchers will always get a better deal because banks are trying to entice them, and customers who threaten to leave can be offered lower rates just to keep them. It's a tough call as to whether it's fair or not, I'm not sure it is.
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