The ask Bandage about mortgages thread

We will hopefully fall on the right side of this and be alright jack (cc @gilgamboa). We only went with Avant because of the 7-year 2.25% rate. In hindsight, we should have broken our current fixed rate thatā€™s expiring at the end of September earlier as they had that cash back/ā‚¬1,500 to cover solicitorā€™s fees offer up until March or April afaik. Think the rate might have been a bit lower then too? A higher break cost back in Q1 would have been more than offset by those two things. But we got our offer letter in late July, did the signing with the solicitor this week and she says it should be done by the end of next weekā€¦well in advance of 9 September. You just wouldnā€™t know with lender cunts and the types that work in these organisations. A spurious issue might be invented/pulled out of someoneā€™s arse next week to delay it so they can pin the increased rate on us. If so, weā€™ll try get that PTSB 5-year rate @Massey ā€™s going for but that mightnā€™t be available for too long either.

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Itā€™s not PTSB,my fixed term is up with UB but Iā€™m not moving till next month but thatā€™s the rate UB have offered me which PTSB will have to honour once I move.

Would you not consider fixing for ten years at 2.8?

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Avant is NOT a bank, pal. Banking license required to take customer deposits, not to lend.

Resolute IS a bank, albeit a foreign bank operating here on the basis of the EU common market.

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The inflation will erode mortgage debt nicely over the next five years.

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Provided you are going to get pay increases toatvh inflation. That is not a given.

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Itā€™ll erode with inflation. Pay increases will lag inflation so it could be rocky for a few years alright.

Employees are being told they need 10% wage increases to beat inflation.
Employers are being told we are entering a recession.

And the is the concern. Stagflation is a genuine worry.

Stag, stag, stag, stag

It will only erode for an individual if their pay increases.

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Itā€™s so difficult to see how things will play out in the coming months. I would think that certain industries will increase pay close to the rate of inflation, others wonā€™t or canā€™t. I fear the hospitality industry is completely pricing themslves out of the market. That is a big employer in certain areas.

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Some industries will for now. If the wage bill makes them twitchy, some may up sticks.

The cashback offer was almost meaningless. Worked out at equivalent to a single monthā€™s repayment. Over a mortgage, thatā€™s hardly worth even factoring in.

Has anybody ever done or looked into the EIIS ( Employment Investment Incentive & Scheme) I see if you invest an amount into an Irish company that qualifies you can claim back 40% of it as it is a form of tax relief? The projected growth on some of them are about 8% per year and you can take back your investment after 4 years along with the growth. Obviously the risk is If the company does go bust you lose your investment but it strikes me as nice incentive for those on the higher tax bracket if you done your research.

A lot of people got burnt on those during the last recession. Not something Iā€™d be ploughing money into in the current environment?

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Iā€™ve vague memories of some film investment scheme run by Anglo. Iā€™m sure it all ended up fine.

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Iā€™d stay well clear at the moment. A lot of Irish companies will be lucky to make it through the winter.

Yeah I remember Charlie McCreevy (a mighty maneen) promoting a scheme back in the day but Im just interested to see if anybody has invested in the current one that is out there or how they found it.

The film scheme was a handy 3 or 4k for virtually zero risk

The EIIS carryā€™s a degree of risk

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