European banks, Irish property mortgage

JuliusCaesar

Given that the mortgage rates are so high here compared to mainland Europe, wouldn't it be more tempting for foreign banks to offer mortgages here?

https://www.rte.ie/news/business/2017/0811/896753-irish-mortgage-interest-rates-well-above-euro-area-avg/

The average rate in Ireland of 3.35% is well ahead of the euro area average of 1.83%.

Atlantic Dawn

I think the mickey mouse rules and procedures around house repossession make this country not apppealing at all to the foreign banks, Bank Of Scotland stung heavily before.

Geuze

Yes, the margins are wide, but as it is extremely slow and difficult to enforce the security on the mortgage in Ireland, then no foreign bank has entered the market.

Unbelievably, some TDs want to make it even more difficult to repossess houses.

Jim2007

Unlike Ireland and the U.K. where mortgages is the business of a bank, mortgages are a business of the bank offered in their domestic market. When it comes to making money abroad there are less risky ways to make money - asset management, wealth management, investment banking etc.. So not much interest in getting involved in cross border loans.

Also most European institutional investors do not like their banks to get involved in such high risk areas.