Mortgage rates if ECB moves negative.

handlemaster

With the people with tracker mortgages actually get paid from the banks for their loans if ECB rate goes deep negatively ?

Will there be a move by the Banks to offer more longer term fixed rates ?

Also what are the banks not currently offering full term mortgage fixed rates like most of Continental European banks do ? The banks in Ireland borrow the funds in the same manner as other european banks so why not ?

machalla

I'd imagine the risk level here is significantly higher than in the rest of Europe as its difficult to evict and sell a property on here.

Plus the recent calls for legislation to ban evictions makes it an even riskier proposition for banks. The market is also unappealing for new entrants or perhaps we might see some of the European lenders entering the market here. he only new lender I've noticed recently is Finance Ireland in the past year or so.

I think a recent survey pointed out that banks were on average raising their interest rates across the board and it was becoming more expensive to finance a mortgage, not less. I think this was based on the average prices across all banks. Some of them offering incentives have pulled those back I think.

So I don't think we will be seeing much cheaper than we currently have seen but I very much hope to be proved wrong!

handlemaster

Will the tracker boys end up with zero interest