Friday, June 13, 2008
AIB votes Yes to mortgage rate hikes.
Now that the Irish referendum on the Lisbon treaty is over, the housing crisis resumes. Allied Irish Bank, have increased first-time mortgage rates by 0.40%, and imposed smaller increases on other mortgages. However, they will still lend up to 92% loan-to-value, and claim no restrictions on mortgage availability. (Now, about the restrictions on customers' ability to pay those mortgages..?) (This is relevant to HPC, since the Irish situation is a funhouse mirror reflection of the UK situation. The housing market in Dublin is insane, with average 3-bedroom houses typically priced in the millions.)