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Debt Downgrade

J4mie · 2010-05-05 02:02:08

I see Standard & Poor’ are downgrading debt ridden countries. If that happens in Ireland and increases the cost of borrowing how will mortgage costs be affected?:confused:

05-05-2010 2:02am

#1

J4mie

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I see Standard & Poor’ are downgrading debt ridden countries.

If that happens in Ireland and increases the cost of borrowing how will mortgage costs be affected?

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Comments

#2 05-05-2010 8:39am

antoinolachtnai

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Not directly. This rating mainly to do with the ability to repay of the government of the country, not its banks.

However, it will have knock-on effects. It's hard to say how big the effect will be, in general.

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#3 05-05-2010 10:03am

D3PO

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It will have pretty much no effect. Too long winded to go into wholesale market borrowing and bonds etc.

Trust to say it wont impact your interest rate directly, however banks are increasing their margins so if your on a variable mortgage expect your rates to go up anyway.

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