My take is, interest rates are already crazy low, if you were in a European country where these interest rates were passed on it would be the biggest no brainer of all time to lock these rates in for as long as possible. The only lingering doubt is that Irish interest rates could go down lower, but 2% is probably the absolute max and I wouldn’t expect longer term fixed rates to go near that.
That said they can’t stay low forever, and they can climb by a whole lot more than 1% over the next few years. I’d rather be slightly overpaying at an interest rate I can afford for 10 years, than paying 6% and spending my days praying the ECB weren’t thinking of another hike or I might not make the payment.
Remember them days between 2005 and 2007/8 when the every couple of months there would be an ECB interest rate increase. People on fixed were laughing at people on Tracker and variable rates. Then the crash hit and the the interest rates were dropped and the people on the fixed rates were balling their eyes out.
Adamstown had a railway and schools built along with the houses but suffered during the crash and the railway station didn’t open for years
Oh and Parts of Belmayne became ghost estates and that was 7 miles from Dublin city centre, walking distance from a bus corridor and a stones throw from the Dart.
There are 3 bed houses in Dunshaughlin not selling. A 100% mortgage would cost €1,400/€1,600 per month for a young family.
There are families squeezed into two bed apartments in the likes of Charlestown in Finglas paying €1,800 a month!
There has to be a different approach with lending.
The couple with the kids can pay the mortgage and have change to save or spend back into the economy.
If people say that will increase house prices… good. It will bring more on.
If a builder currently can’t shift a phase he won’t build the second one.
As for some politicians thinking they should only profit 15% ??? Crazy… buy a site, build an estate, gamble €10m to earn €1.5m… forget it
residential lending has brought banks down but only commercial lending brings down a country
Assist families, who can produce evidence that they can meet the monthly repayments and who are currently stuck in apartments, to buy, and then freeing up apartments.
Intelligent lending…Not the good old times when you’d get “I can get you 6 times your salary”…
If you have a mortgage the breakage fee is fairly minimal these days. It is well worth shopping around. PTSB’s 2% cashback and 2% monthly cashback is an excellent product. I would not be fixing for ten years as the new lenders on the market are leading to the rates being kept low,’they are still way higher than the rest of Europe. If you have a small mortgage, the KBC switcher offers €3,000, say €1,500 after the conveyancy is well worth a look.