Why do Irish people put up with such high mortgage rates?

ScoobyDoo

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One of the main reasons they are so high is because so many chancers do not bother paying their mortgages at all because they are safe in the knowledge nothing will be done to them.

Why does the general population put up with this and happily fork out €1000's more in interest a year to subsidise those that choose not to pay at all?


https://www.independent.ie/business/personal-finance/property-mortgages/variable-rates-so-high-because-thousands-are-choosing-not-to-pay-their-mortgages-36919488.html
 


GDPR

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One of the main reasons they are so high is because so many chancers do not bother paying their mortgages at all because they are safe in the knowledge nothing will be done to them.

Why does the general population put up with this and happily fork out €1000's more in interest a year to subsidise those that choose not to pay at all?


https://www.independent.ie/business/personal-finance/property-mortgages/variable-rates-so-high-because-thousands-are-choosing-not-to-pay-their-mortgages-36919488.html
Well, Irish people put up with landowners, developers, banksters and politicians working to drive home prices above and beyond affordability - so why get upset about a phenomena that hardly registers in the overall scheme of things?
 

gleeful

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One of the main reasons they are so high is because so many chancers do not bother paying their mortgages at all because they are safe in the knowledge nothing will be done to them.

Why does the general population put up with this and happily fork out €1000's more in interest a year to subsidise those that choose not to pay at all?


https://www.independent.ie/business/personal-finance/property-mortgages/variable-rates-so-high-because-thousands-are-choosing-not-to-pay-their-mortgages-36919488.html
Do we have an alternative?
 

hammer

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Strategic default has hurt many.

Is it an extra €2500 on average standard rate mortgage holders pay ?

I remember also the doomsters giving out and expecting those on trackers to be taxed extra because of the benefit they had :)
 

gerhard dengler

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Do we have an alternative?
One issue is the deliberate blocking of new lenders entering in to the Irish market. As with the Irish Insurance sector, there is an active embargo on foreign entrants in to the Irish commercial market in banking.
 

PBP voter

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FF FG Lab SF Greens indo etc are all against repossession on a large scale.

That's why.

So unless we elect a government outside of what's in the current Dail the status quo will go on.
 

hammer

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One issue is the deliberate blocking of new lenders entering in to the Irish market. As with the Irish Insurance sector, there is an active embargo on foreign entrants in to the Irish commercial market in banking.
We let Bank of Scotland in.

What affect did they have :)
 

PBP voter

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One issue is the deliberate blocking of new lenders entering in to the Irish market. As with the Irish Insurance sector, there is an active embargo on foreign entrants in to the Irish commercial market in banking.
Do you think banks are desperate to get in? I dont.

Some of the big UK property developers could build 10,000 in Ireland ASAP if they wanted to. They dont seem to bothered.
Ireland really is a small market in a small open economy.
 

Civic_critic2

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The P.ie response to this left-wing question will be:
- reactionary answer 1
- reactionary reasoning 2
- reactionary proposal 3
 

PBP voter

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The P.ie response to this left-wing question will be:
- reactionary answer 1
- reactionary reasoning 2
- reactionary proposal 3
Then put forward a solution.
 

PBP voter

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hammer

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It is the bank's lending model that really catches the eye. In Germany it offers long-term SME loans at a 3pc interest rate. Its best mortgage rate for home buyers is 1.1pc fixed for 10 years. Asked could the proposed Irish Sparkasse match those rates, a senior Sparkasse executive told the Joint Oireachtas Committee on Finance that this was part of the Irish proposition.

What affect would a 1.1% fixed 10 year mortgage rate have on house prices ?
 

gerhard dengler

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I used an N26 current account. I find it excellent. Just fed up with Irish banks.
https://n26.com/en-eu/

Hopefully we get more competition from some of the better European banks.
I think some more competition from abroad would force Irish banks to offer less expensive mortgages.

But the OP is correct, a big part of the problem is that compliant borrowers are carrying the can for non-compliant borrowers. The bank itself needs to sustain the cost of non-compliant borrowers and not pass on the cost to compliant borrowers.
 


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