gnf_ireland
Registered User
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@Mackemdub is it not a bit like most things. You sign up based on your LTV and LTI ratios at a point in time and you stay on that rate unless you elect to move off it. The banks have made their assessment based on various factors at the time to offer you those rates over the period of the mortgage.
However, if you elect to switch or re-mortgage with the same bank (similar to doing a new valuation form today), you would also be required to submit the last 3 years P60's to move bracket. If your circumstances have gotten worse, you simply stay on your current band
Confusingly the CB report TWO different average new business rates - right now 3.6% or 4.26% whichever you're having...the average new business rate as returned to the ECB by the Central Bank. At the moment, this would be 4.5% (125% of 3.6%).
Just curious ... do you have a link to more info about that?France caps interest rates at 133% of the average interest rate in the previous quarter and the interest rate cap for variable rate mortgages at the end of 2014 was 4.53% (the average effective rate was 3.4%).
My suggestion is that rates should be capped at 125% of the average new business rate as returned to the ECB by the Central Bank. At the moment, this would be 4.5% (125% of 3.6%).
Whats the repossession rates like on the Continent!A fair rate would be the European average rate of 2.09%
Confusingly the CB report TWO different average new business rates - right now 3.6% or 4.26% whichever you're having...
http://www.askaboutmoney.com/thread...ortgage-rates-in-ireland.194014/#post-1431833
Just curious ... do you have a link to more info about that?
How about a modification to this and have the cap based on the MEDIAN value of all countries in the Eurozone - who have 'effectively' the same cost of lending? Surely this would be a greater spread and benchmark how competitive our banks are against other countries.
@Sarenco My issue with this is where can I go today to get a rate of 3.6% ? This is the average rate for new business according to the central bank, but there is no bank offering this today. KBC has the lowest variable rate @ 3.61 APR on a LTV of <60%
Also there is nothing in this process to stop all banks raising their rates to 10% and the cap becoming 12.5% for example?
Thanks a lot.I am attaching a link to a short presentation on interest rate caps in France.
Thanks a lot.
But do "'easy to obtain' small consumer loans" include mortgages? It's not clear from the presentation.
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