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Ireland's Permanent Tsb To Cut Mortgage Rates For New Customers

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http://uk.reuters.com/article/2015/01/05/uk-permnt-grp-hldg-mortgages-idUKKBN0KE00J20150105

Ireland's permanent tsb (PTSB) will cut mortgage rates for new customers from next week, becoming the latest lender to do so amid intensifying competition in a recovering property market.

State-owned ptsb, which is seeking to raise at least 100 million euros (78 million pounds) of capital after failing European bank stress tests last year, said on Monday that it will cut its range of rates for new homeowners by up to 0.42 percentage points.

It follows a cut by another state-owned bank, Allied Irish Banks, which in October bucked the trend of lenders not passing on lower European Central Bank interest rates to consumers and cut its standard variable rate mortgage by 0.25 percentage points.

Permanent tsb's variable rate for new customers where the loan is 50 percent or less of the value of the property will be 3.76 percentage points, down 0.36 percentage points. Customers with a loan-to-value ratio of 70 to 80 percent will pay 4.07 percent, a cut of 0.42 points.

So the bank failed the stress test, needs new capital and is lowering its margins?

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It's not just the Irish banks.

I noticed HSBC lowering margins on their BOE tracker products. 60% LTV tracker is now 1.79%, down from 1.99%, and in May 2.19%.

So essentially HSBC have cut 0.4% spread over BOE base rate in the last 8 months.

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I noticed HSBC lowering margins on their BOE tracker products. 60% LTV tracker is now 1.79%, down from 1.99%, and in May 2.19%.

Where are you seeing this? I'm only seeing 1.99%, they had fees of £299 before Christmas but this has since shot up to over £1000! I can only see First Direct with a rate of 1.79% at the moment.

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Where are you seeing this? I'm only seeing 1.99%, they had fees of £299 before Christmas but this has since shot up to over £1000! I can only see First Direct with a rate of 1.79% at the moment.

Good starting point http://themortgagemeter.com/#/latest_changes

Edited by long time lurking

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Where are you seeing this? I'm only seeing 1.99%, they had fees of £299 before Christmas but this has since shot up to over £1000! I can only see First Direct with a rate of 1.79% at the moment.

That's the one. First direct/HSBC.

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Cutting rates to scrub around to find remaining buyers, willing to pay high prices.


Property survey shows drop in house prices for Q4 in 2014
Monday 05 January 2015 14.12

The average asking price of a home fell by 1% nationally in the last three months of 2014, according to a survey of asking prices on property website Daft.ie.

However, the study shows that despite the drop, prices are still almost 13% higher than they were a year ago.

With competition increasing in the mortgage market, a number of banks have announced cuts to lending rates in order to attract new business.

http://www.rte.ie/news/2015/0105/670346-property-prices/

19 December 2014

Analysts say that mortgage approvals are likely to continue rising for another few months, though they may well drop in the second half of 2015 as the Central Bank restrictions start to kick in.

The Central Bank has proposed that borrowers should have a minimum of 20% deposit in place before being approved for a home loan. It also wants to cap the size of mortgages at three and a half times a borrower's income.

http://www.rte.ie/news/business/2014/1219/667937-mortgages/

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Back in the heady days of '04, I took out a 90%LTV lifetime tracker from PTSB at ECB + 0.69%! They have a huge book of loans like this which are causing them to haemorrhage cash. It's not surprising they're failing stress tests. It's the cheapest money I'll ever borrow!

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