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KBC Current Mortgage Offers

KBC  is offering attractive mortgage deals for customers who are looking to buy their first home, subsequent home, or those simply looking to switch for better value.

  • Rates from as low as 3.30% fixed and 3.25% variable when you open a KBC current account.
  • 50% off KBC Home Insurance for 1 year for new residential mortgages that draw down up to 31st December 2015.
  • Clients who wish to switch to KBC before 31st December 2015 get €2,000 towards legal fees.

Terms and conditions apply.

Contact us to discuss on 01-5052718.

 

 

Royal London 10% off Mortgage Protection

Royal London have announced they are now offering 10% off all price-matched mortgage protection premiums. This special offer runs from Monday 21st September until 30th October 2015.

In the event of death, mortgage protection will make a once off lump sum payment to cover the remainder of your Mortgage. As you pay off your mortgage, your protection cover will reduce to reflect the amount you owe.

Contact us on 01-5052718 to discuss this offer and receive a quote.

Having children now comes before buying a home

Having a baby now comes before owning a home for a new generation that has little choice but to rent until their mid-thirties. Increased barriers to acquiring a home have raised the average age of Ireland’s first-time buyer by four years to 33. In 2005, the average first-time buyer in Ireland was about 29, but according to Real Estate Alliance (REA), this figure is up and still rising.

The newly emerging trend is more and more Irish couples are now starting their families in rental accommodation- a social shift which goes against the longstanding Irish tradition of buying your home first.

A combination of circumstances have combined to make it extremely difficult for young people to buy:

  • New Central Bank rules pushing up the deposit that must be saved for a house;
  • Returning emigrants finding it difficult to secure mortgage approval without a full year’s employment behind them;
  • The increase in contract work, as opposed to a “job for life”, making it difficult to get a mortgage;
  • A change in attitudes following the property crash and unwillingness to buy the “wrong” home.

More mortgage holders switch bank but total moving still tiny

New figures from the banks show that 240 people switched their mortgage from one lender to another in the April to June period.

This is up from 108 in the same period last year, according to the Banking and Payments Federation.

Goodbody Stockbrokers noted that switching is now at the highest level in four years, but it still only represents approximately 4pc of total lending volumes.

Founder of the Askabout.com website Brendan Burgess said it was likely homeowners were waiting to see if variable rates will fall further before making any moves to switch.

Property prices rise nationally but fall in capital

The cost of buying a home has risen by more than 10pc year-on-year, but prices are falling in Dublin.

The Central Statistics Office (CSO) says residential property prices in the capital have dropped by 0.4pc in June, compared with a national increase of 0.1pc across the country.

And although house prices continue to increase, the rate of that rise has slowed down.It says that prices rose nationally by 0.1pc in the month of June, compared with 0.5pc in May and an increase of 2.9pc recorded in June of last year.

This is likely due to new rules introduced by the Central Bank in February which require first-time buyers to have saved 10pc of the property price, and second-time buyers at least 20pc, before they can secure a mortgage.

However, in Dublin, prices are falling, down 0.4pc last month. Despite this, prices are still 11.1pc higher than a year ago. The fall was more pronounced for apartments, which dropped 0.4pc, compared with 0.3pc for houses

Property prices rise at fastest pace in the EU

House price rises in Ireland were the highest in the European Union last year.

They increased by more than six times the EU average in the first three months of this year.

The annual rise was close to 17pc in the three months to March compared with the same quarter last year.

This was the highest rise in the EU, according to the Eurostat House Price Index.

The EU statistical office said the surge in prices here was despite prices actually falling in the three months to March.

Sweden had the next highest rise in prices, at 11.6pc in the year to March, followed by Hungary at close to 10pc.

Central Bank rules see easing off in mortgage approvals

The numbers approved for a mortgage in May have gone up, but at a slower pace than the same month last year.

This is due to Central Bank lending restrictions, experts said.

Figures from the banks show 2,461 potential buyers were approved for a mortgage in May.

This was up 20pc on the figure for the same month last year, according to the Irish Banking and Payments Federation.

Experts said this was slower than the rises in the numbers approved for a home loan earlier in the year.

In February the Central Bank introduced limits on lending, in a move it called macro-prudential rules.

Economist with Goodbody Stockbrokers Eamonn Hughes said: “The surge in mortgage approvals ahead of the implementation of the new Central Bank macro-prudential rules was always likely to result in a slowdown once the rules were implemented.”

Income limits causing ‘mortgage lockout’ for First-Time Buyers

Sunday Times article ; results of Mortgage Brain survey.

A new survey of brokers highlights that the income rules will provide a ‘killer blow’ for First Time Buyers (FTB) and not the deposits as previously expected by many analysts. This survey was carried out by Mortgage Brain Ireland, the team behind the IrishMortgages app. Some 200 broker companies were surveyed throughout Ireland. Brokers recommend increasing the lending limits to 4.0 or 4.5 times income.

 

The Loan to Income limits (3.5 times joint income) will be the real “killer blow for First Time Buyers trying to get on the housing ladder” according to Michael Quinn, Managing Director of Mortgage Brain Ireland. Some ” 48% of brokers feel that this income rule will have a high impact on the FTB’s ability to get a mortgage while another 40% of brokers believe there is a medium impact” according to Quinn.

 

Michael Dowling, a leading Irish Mortgage broker and chairman of Mortgage Brain Ireland said: “These new rules will directly impact First Time Buyers’ ability to purchase a home. The rules will likely put home ownership out of the reach of most young FTB’s unless they are earning a substantial salary. For example he points out that a couple who are now trying to buy a house worth €300,000 will need a deposit of €38,000 (12.6%) on a mortgage of €262k and this will require a joint income of €75,000.”

 

The new income limits (3.5 times joint income) will mean that the majority of public sector workers, and those on medium to low incomes, will not be able to borrow enough to buy a home in the city. This ‘mortgage lockout means that only white-collar professionals on high salaries will be eligible to borrow enough to match the high house prices in Dublin, Cork and Galway.

 

The IrishMortgages App survey asked Brokers their opinions on how we could improve the situation. Some 51% of brokers would recommend an increase in income multiples to 4.0 times income, while a further 33% suggested increasing this to 4.5 times income according to Quinn. In the UK the income multiple is 4.7 for single applicants and 4.5 for joint applications.

Fears first-time buyer grant would push up home prices.

A Labour Party proposal to introduce a cash grant scheme for first-time buyers is likely to be shot down amid fears it would cause house prices to increase further.

The measures would mean the minister directs local authorities to provide cash grants to applicants struggling to get onto the property market in cities such as Dublin, Cork, Limerick and Galway.

Dublin Central TD Joe Costello and party chairman Jack Wall said measures are needed to assist those trying to get onto the property ladder.

But senior Government sources have voiced caution over such a move, warning against any such measure that could cause house prices to escalate further.

Mr Kelly is also due to roll out a suite of measures aimed at stalling spiralling rent bills

Rental crisis deepens in first quarter.

Rents rose by 6.9 per cent nationwide in the year to the end of March, according to new figures published by the Private Residential Tenancies Board (PRTB)..

The latest PRTB Quarterly Rent Index, which is compiled by the Economic and Social Research Institute (ERSI) indicates that rents for houses rose 6.5 per cent while apartment rents increased by 7.8 per cent.

In Dublin, where costs are usually higher, house rents were up 9 per cent in the year with apartment rents jumping by 10.8 per cent.

In monetary terms, the rent for private sector accommodation across the whole country rose €54 in the year from €781 to €835. The rents for apartments increased on average by €63 in the 12 months to the end of March while rents for houses were up €49 to €814.

In Dublin, the average cost to rent was €1,325 for a house and €1,205 for an apartment. This compares to €1,215 and €1,087 respectively for the same period a year earlier.