Daft Property - Irish Property News

Thousands at risk of rate hikes as AIB bars mortgage switchers... THOUSANDS of homeowners are effectively trapped with their existing lenders after the biggest bank in the country, AIB, admitted yesterday that it no longer accepts mortgage switchers. Just two lenders will now accept switchers, leaving thousands of homeowners trapped and vulnerable to being hit with higher mortgage rates. The AIB move is a huge blow to mortgage holders who are with Permanent TSB as it has increased its mortgage rates twice in the past six months, and those with Halifax, which is closing its retail operations here. AIB has the lowest home-loan rates in the market, with a standard variable rate of as low as 2.25pc and a three-year fixed rate of 3.19pc. In comparison, Bank of Scotland (Ireland)/Halifax has a three-year fixed rate of 7.25pc. Permanent TSB shocked homeowners this month when it pushed up its standard variable rate for existing customers by 0.5pc. Other lenders are now expected to follow the m...

Underwater mortgages: a guide to survival... Latest estimates suggest that as many as 340,000 home-owners, or one in five homes, are stuck in negative equity... HINDSIGHT IS a wonderful thing. Looking back at the prices people paid for Irish property during the boom, it’s easy to see how unsustainable they were. However at the time, despite warnings from everyone from the Central Bank to the Economist magazine that Ireland’s property market was a bubble which had to burst, banks and consumers ignored the advice and ploughed money into property, propping up prices until the inevitable collapse during 2008. Now, latest estimates suggest that as many as 340,000 home owners, or one in five homes, are stuck in negative equity and prices are still sliding . If this is the case, then people who purchased property as far back as 2003 with loan-to-values (LTVs) of more than 80 per cent, will discover that they owe more to the bank than what their house is worth. For example, at the peak of the ...