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Ireland Raises The Rates

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Bank of Ireland announces increase in mortgage interest rates

By Finfacts Team

Jun 14, 2006, 14:25

Bank of Ireland Mortgages today announced rate increases across its portfolio of home loan and investment fixed rate and tracker rate mortgage products. The increases will take effect from start of business Thursday 15th June 2006.
The increases are in response to the rise in the cost of funds on the financial markets and last week’s European Central Bank repo rate increase.


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Over here the steady tinkle-tinkle sound of pennies dropping gets ever louder.

This article is a must read for those interested in the Ireland housing market. Sorry if already posted.

Housing warning as shares drop

Another indicator that the property market may be close to its peak is that banks and financial institutions appear to be changing their view on the property market. They are rushing to offload their property portfolios as interest rates tick up.

Bank of Ireland is the latest to get in on the act. Last week it announced it was about to sell and lease back part of its branch network to release capital for its banking operations. The yield on the deal is expected to be a mere 3 per cent, less than what buyers would get if they put their funds on deposit with Bank of Ireland.

AIB is also considering selling and leasing back much of its retail branch network, having earlier this year sold its own headquarters in Ballsbridge in Dublin.

Some banks also appear to be turning cool on lending for certain kinds of residential property development and purchase.

Indeed, one banker told the Insider recently that his bank was now less keen on lending for property in what he called secondary locations.

You will not get bankers to admit to such policy changes on the record. This is for the very good reason that they fear that any perception of a sudden change in sentiment could damage property values, which act as collateral for loans issued by the banks and are therefore crucial to supporting the banks’ share prices.

Edited by Flash

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  • 301 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?

      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%

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