An Post to enter mortgage market

starbaby2003 · 23-09-2018 8:03pm #1

I find this a very interesting move given that they are semi state. What are others thoughts ?
https://m.independent.ie/business/small-business/an-post-money-to-take-on-pillar-banks-with-mortgages-by-end-of-2019-37344305.html

Eric Cartman · 23-09-2018 8:04pm

this seems like a last ditch attempt to make some money like post phone and all their other services that aren't letter deliveries.

Id be more concerned about who is underwriting them or who they'd sell the loan book to when they get out.

starbaby2003 · 23-09-2018 8:08pm

Eric Cartman wrote: »

this seems like a last ditch attempt to make some money like post phone and all their other services that aren't letter deliveries.

.

This was first thought too. They seem to be juggling a large number of spin offs and finding it hard to keep the balls all up.
On a practical level I’m not sure how it would work. Would Mary in the local post office be privy to your mortgage details or would everything be done out of head office.

Eric Cartman · 23-09-2018 8:11pm

starbaby2003 wrote: »

This was first thought too. They seem to be juggling a large number of spin offs and finding it hard to keep the balls all up.
On a practical level I’m not sure how it would work. Would Mary in the local post office be privy to your mortgage details or would everything be done out of head office.

id imagine they are underwritten by a large real bank, they put their logo on the letterhead, apply online, maybe meet an advisor in one of the larger city post offices.

Fann Linn · 23-09-2018 8:14pm

starbaby2003 wrote: »

This was first thought too. They seem to be juggling a large number of spin offs and finding it hard to keep the balls all up.
On a practical level I’m not sure how it would work. Would Mary in the local post office be privy to your mortgage details or would everything be done out of head office.

Down here in the shticks Mary's sister Biddy works in the local bank. And her other sister Patsy controls the polling station. Just do your business in another town if ye don't trust them.

ForestFire · 23-09-2018 8:15pm

starbaby2003 wrote: »

On a practical level I’m not sure how it would work. Would Mary in the local post office be privy to your mortgage details or would everything be done out of head office.

What's wrong with Mary knowing you mortgage details?

At the moment John in the local bank is privy to these details already.

Is John better than Mary?

P. S. I have absolutely no idea who Mary or John are, but if someone's knows them tell them I said hi.

myshirt · 23-09-2018 8:17pm

ForestFire wrote: »

What's wrong with Mary knowing you mortgage details?

At the moment John in the local bank is privy to these details already.

Is John better than Mary?

P. S. I have absolutely no idea who Mary or John are, but if someone's knows them tell them I said hi.

Get them feckin crunchies out of the car and get this man a mortgage.

starbaby2003 · 23-09-2018 8:20pm

ForestFire wrote: »

What's wrong with Mary knowing you mortgage details?

At the moment John in the local bank is privy to these details already.

Is John better than Mary?

P. S. I have absolutely no idea who Mary or John are, but if someone's knows them tell them I said hi.

I always think of post offices as run by locals whereas banks having employees so people from anywhere. Irish people are funny about people knowing their business especially when it comes to land and money.

Dog walker 1234 · 23-09-2018 8:25pm

Competition in any market is great. Nobody is going to be forced to have a mortgage with An Post.

Caveat Emptor

KevinCavan · 23-09-2018 8:27pm

Will this increase stamp duty?

Tails142 · 23-09-2018 8:28pm

Won't be lending till 2020, just in time for the next crash like their last effort PostPay with Fortis.

Eric Cartman · 23-09-2018 8:29pm

Tails142 wrote: »

Won't be lending till 2020, just in time for the next crash like their last effort PostPay with Fortis.

an post really have a special talent for entering financial markets at the exact wrong time in an investment cycle.

starbaby2003 · 23-09-2018 8:34pm

Dog walker 1234 wrote: »

Competition in any market is great. Nobody is going to be forced to have a mortgage with An Post.

Caveat Emptor

Exactly I’ll switch my mortgage to whoever gives the lowest rate.

GingerLily · 23-09-2018 8:40pm

starbaby2003 wrote: »

I always think of post offices as run by locals whereas banks having employees so people from anywhere.

You would be surprised!!

Avatar MIA · 23-09-2018 8:55pm

The village post office won't be handling mortgage decisions.

ForestFire · 23-09-2018 10:12pm

starbaby2003 wrote: »

I always think of post offices as run by locals whereas banks having employees so people from anywhere. Irish people are funny about people knowing their business especially when it comes to land and money.

Yes agree I do agree Irish people are strangely over sensitive about these things.

I remember many years ago, at the end of the housing boom, I shared a taxi home with a completely random couple.

They were talking about moving to some other location and selling up their house.

When we got to their estate, I said it looked like a nice area, and asked how much they were looking for the house.

Well the woman got really upset that I would ask such a personnel and private question (granted we were all a bit drunk, and probably assumed I was not really looking to buy)

But I said to her, it's going to be hard to sell a house if you don't let people know how much your looking for it(and it was already, or would have to be advertised, that I could check later myself anyway)

Anyway, back on topic, good to have extra competition and I hope it will be an an post finance product and not just a resell of some other banks products.

I also think we should introduce the SSIA savings product permently to each Irish citizen to avail of once in their life.

This would both incentives saving and help people to save for deposits for first house.

Loves_lorries · 24-09-2018 9:34am

Wonder will it be anything like their currency exchange service.

Where the rate they claim to be live is much higher than the actual forex and thus is effectively exaggerated value.

4ensic15 · 24-09-2018 9:51am

starbaby2003 wrote: »

I always think of post offices as run by locals whereas banks having employees so people from anywhere. Irish people are funny about people knowing their business especially when it comes to land and money.

Some people in the country have a strategy of having their accountant, solicitor and bank in 3 different towns, preferably in different counties, if they can.

4ensic15 · 24-09-2018 9:52am

starbaby2003 wrote: »

I find this a very interesting move given that they are semi state. What are others thoughts ?
https://m.independent.ie/business/small-business/an-post-money-to-take-on-pillar-banks-with-mortgages-by-end-of-2019-37344305.html

They don't have a partner yet. They are talking about undercutting the main banks without knowing what margins their partner will insist on. I'll believe it when I see it.

Henryhill2 · 24-09-2018 10:15am

4ensic15 wrote: »

Some people in the country have a strategy of having their accountant, solicitor and bank in 3 different towns, preferably in different counties, if they can.

Be like shooting yourself in the foot all that driving

Although I can see it has some merit

Accountants especially I find tend to yap a lot

DubCount · 24-09-2018 11:57am

Henryhill2 wrote: »

Accountants especially I find tend to yap a lot

Most accountants I have met struggle to yap to their own shoes

loyatemu · 24-09-2018 1:44pm

if it's anything like their current account or PostFone, it won't be giving the existing mortgage providers any sleepless nights.

Avatar MIA · 24-09-2018 2:14pm

Henryhill2 wrote: »

Accountants especially I find tend to yap a lot

DubCount wrote: »

Most accountants I have met struggle to yap to their own shoes

Not sure which I should be more insulted by :pac: Will confer with my shoes.

ED E · 24-09-2018 4:21pm

Whitelabel service from another bank. Will be more expensive you can guarantee that.

Shoehorning a product into an out of date operation is definitely a great idea, muppets.

Avatar MIA · 24-09-2018 4:26pm

ED E wrote: »

Whitelabel service from another bank. Will be more expensive you can guarantee that.

Shoehorning a product into an out of date operation is definitely a great idea, muppets.

What with the way banks are going with staffing/branches An Post with an existing counter staff could do a lot more.

4ensic15 · 24-09-2018 6:03pm

Avatar MIA wrote: »

What with the way banks are going with staffing/branches An Post with an existing counter staff could do a lot more.

The banks are doing it to cut costs. If An Post intends to compete with them, An Post will have to cut costs also. The pay cash for everything brigade is dying off. It is debit cards all over the place now.

Eric Cartman · 24-09-2018 6:15pm

ED E wrote: »

Whitelabel service from another bank. Will be more expensive you can guarantee that.

Shoehorning a product into an out of date operation is definitely a great idea, muppets.

probably with some crap gimmick like their forex , "A no interest mortgage" with a 9% APR per year administration fee, paid monthly.

4ensic15 · 24-09-2018 6:19pm

Henryhill2 wrote: »

Be like shooting yourself in the foot all that driving

Although I can see it has some merit

Accountants especially I find tend to yap a lot

Most people don't have to visit all of them that often. Furthermore, in the country areas it is easier to drive 30 or 40 miles to a meeting than it is to drive a few miles in Dublin.

Henryhill2 · 24-09-2018 6:25pm

4ensic15 wrote: »

The banks are doing it to cut costs. If An Post intends to compete with them, An Post will have to cut costs also. The pay cash for everything brigade is dying off. It is debit cards all over the place now.

They do have a niche there but it's not going to be mainstream with the prevalence of online and cards.

Post Insurance is very convenient for some ,monthly cash installments at the PO

No doubt there'll be a similar gimmick with the loans to suit some.

Colonel Claptrap · 24-09-2018 6:29pm

If you thought state owned banks weren't going to enforce repossessions, wait till you see what a toothless semi-state can do!

Absolutely zilch.

Another win for the "can't pay, won't pay" shower.

Eric Cartman · 24-09-2018 6:35pm

Colonel Claptrap wrote: »

If you thought state owned banks weren't going to enforce repossessions, wait till you see what a toothless semi-state can do!

Absolutely zilch.

Another win for the "can't pay, won't pay" shower.

actually quite true, and then muggins over here will be forced to pick up the tab for their free houses in the form of bailing out an post.

boombang · 24-09-2018 6:39pm

Eric Cartman wrote: »

actually quite true, and then muggins over here will be forced to pick up the tab for their free houses in the form of bailing out an post.

This would be exactly my fear. I don't see these guys offering any upside of enhanced competition and I see it offering all the downside of a costly, lame service that places an additional burden on through taxpayer. We don't need this and I'd much rather it didn't go ahead.

Henryhill2 · 24-09-2018 6:39pm

An post is only the front

the_syco · 24-09-2018 6:50pm

Byrne said An Post would hope to have a mortgage partner selected by late spring. "We will cast the net abroad. Irish banks are welcome to submit proposals as well, but we have also looked at international banks that have licences here," she said. "You would be able to get up and running quite quickly.

I doubt any foreign bank will touch Irish mortgages, as if the person doesn't pay they get to stay in their house for a few years before they may get evicted.

Colonel Claptrap wrote: »

If you thought state owned banks weren't going to enforce repossessions, wait till you see what a toothless semi-state can do!

Absolutely zilch.

Another win for the "can't pay, won't pay" shower.

Unfortunately, yup.

banjostring · 16-12-2019 9:00pm

Is there any update out there regarding An Post entering the Market ?

tedpan · 16-12-2019 10:03pm

Spring 2020 apparently

banjostring · 16-12-2019 10:08pm

Thanks !
Read that alright, but it’s been kept pretty quiet since the News broke, so was kind of wondering if it would materialise at all !
Cheers

opm · 21-05-2020 11:13am

taken from the IT, Mon 11th May 2020:

"An Post’s plans to enter the mortgage market in the first half of this year have been hit by the economic fallout from Covid-19, which has seen loan approvals slump and lenders preparing for a surge in bad debts.

While the State-owned postal service operator, which first said in 2018 that it was aiming for a slice of the recovering home loans industry, remains committed to entering the market with a partner, sources said that the timeline has been pushed out.

A spokesman for the company declined to comment on the delay."

Mrs OBumble · 21-05-2020 4:14pm

Tails142 wrote: »

Won't be lending till 2020, just in time for the next crash like their last effort PostPay with Fortis.

What a remarkable prescience you had!

An Post to enter mortgage market

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