IdesofMarch
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I don't see how that article references the ECB.
No one is disputing that Ireland's mortgage rates are among the highest in the Euro area. And why is that? One of the main reason is that banks have greater difficulties in Ireland in re-possessing homes/houses from delinquent borrowers. The extra costs associated with this (loss of interest, legal fees, etc) have to be borne by the rest of the borrowers.
Very few in Ireland are prepared to see this change, so in the meantime the rest of us just have to cough up the higher rates. If banking was that profitable here, then there is no doubt that foreign banks would be rushing in to grab some of the profit but as they aren't, bar one or two, that implies that the banking industry is not creaming it as some say.
*In Addition* to the below, you have to expect 10-12% of the purchase price for legal fees.
From a borrower's perspective, it doesn't really matter whether a lender classifies a charge as an interest payment or a fee - all a borrower really cares about is the overall cost of credit.So what? This is about the interest rates not the other costs.
the ECB says different
jpd,firstly,the Central Bank of Ireland is a member of the ECB.
I am a member of the GAA, if you want to quote anything I say please feel free to attribute it to the GAA.
From a borrower's perspective, it doesn't really matter whether a lender classifies a charge as an interest payment or a fee
I really don't know.But is the Austrian Bank in question charging the customer 12% legal fees?
Loan Arrangement fees are blatantly ignored, plus some other details.
One example from an Austrian Bank, bankaustria.at - this is a typical example for Austria, all the fees would be prettythe same across the banks.
*In Addition* to the below, you have to expect 10-12% of the purchase price for legal fees.
Also, LTV usually 70-75% Max!
Example numbers when financing 200K over 25 years - 70% LTV, ie property price 285K roughly, plus 30K legal fees = 315K required,
Loan period: 25 Years
Interest rate: 1,5 % p.a. variable - 2.0% APR
Credit arrangement fees: EUR 4.000 (2% of loan amount)
Valuation Fee: EUR 1.250,- (0.625% of loan amount)
Costs of land registry entry: EUR 2.880,- (1.44% of loan amount)
Quarterly Account fees: EUR 16,20
Monthly repayment rate: EUR 807,33
Total amount paid out: EUR 191.814,30 (200k minus above costs)
Total repayment amount : EUR 242.139,22
Given total costs of 315K, you need to have around 125K *cash* for a property worth 285K
Compare this to Ireland:
Legal costs are usually say around 2000 Euro? May be 2500?
80% LTV not a problem, 90% if FTB.
So property costs 285K, plus 2.5K legal costs = 287,500
say 80% LTV = 57,500 Euro cash required
90% LV = 28,750 Euro cash required,
llgon, I will explain it for you as it appears you have not got the grasp of what a Member State Central Bank is, with regard to the overall ECB (European Central Bank). You see llgon, the Central Bank of Ireland is part of the ECB, each Member State Central Bank forms the ECB and can make comments on mortgage rates in their respective Country as they, more than any other Member State Central Bank, have access to up to date data on mortgage rates in their respective Country. Do you understand this or have I lost you. Your analogy with regard to the GAA is absurd, but maybe that your mindset. Think instead of the Central Committee of the GAA making a comment on the GAA, do you understand now, God bless you. I hope jpd gets this as well, bless him. If the outlined concept is to complicated for you, ask a grown up for help.
Or is it they are not giving you a loan to pay your legal fees,Agree fully with that.
But is the Austrian Bank in question charging the customer 12% legal fees?
Or is it the legal profession?
Brendan
The pronouncements of a publicity-seeking opposition politician with a price-fixing agenda are not an official statement of anything.
Your OP is simply untrue - even with your edits.
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