Tag Archives: first time buyers

Banks are ‘cherrypicking’ best mortgage clients

Operations manager with Irish Mortgage Brokers, Karl Deeter said banks will claim they are lending but on the ground it’s an “entirely different story”. “They don’t want to know except where you are a public sector worker or the type of person who banks would always lend to anyway,” he said. “With figures showing that 80% of mortgage applications are being rejected, it puts the banks in the enviable position of being able to cherry-pick only the best applications, declining even cases that fit criteria but are marginal. “This is contrary to giving the taxpayer back a return on our national investment because they need to lend to make profit, but equally, our pillar banks are charging artificially low rates versus the rest of the market, so not only are they cherry-picking but there is an implicit subsidy being paid to those who borrow via taxpayers who fund the banks. It’s a crazy set-up,” he added.

Sunday Times: Relief cuts cost the cautious

FIRST-TIME house buyers risk losing up to €26,100 in mortgage interest tax relief if they put off purchasing until next year. Karl Deeter, of Irish Mortgage Brokers, said: “Couples would have to earn an extra €50,000 before tax to make up for the interest relief they’d lose by not buying in 2011. They’re better off buying now, even though houses prices are likely to be lower in 2012.”

State mortgage aid up five-fold in four years

Karl Deeter of Irish Mortgage Brokers has warned that expected interest rate hikes this year will push even more householders to the edge. “I can’t see how they (number of applicants) won’t rise because it’s becoming more popular and more necessary,” he said. “The scheme is in place to help you get over the hump, in the hope that you’ll get back to work soon. “But the end result is that there will be more people on it come the end of the year as interest rates go up and unemployment rises.”