One of my readers has drawn my attention to this article in the Timesonline. It appears Lloyds TSB who now own HBOS, are offering their Irish customers mortgages at 50% of the rate for UK customers. The Halifax are now charging 2.74% for a two year fixed-rate deal to first time buyers in Dublin. A five year fixed-rate deal would cost borrowers in its home town of Edinburgh 6.14%. Royal Bank of Scotland is charging 2.95% for a new mortgage in Ireland; in the UK it charges 5.99% for a similar product.
British taxpayers have spent more than £60 billion bailing out RBS and Lloyds Banking Group, leaving the Westminster with a controlling stake in each.
Read the excuses from the banks here. This has got to stop.
How much is Seb Coe paid from taxpayer's money to promote Lloyds TSB? He never does anything for nothing, allegedly.
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12 comments:
It is toral madness. As was the last 12 years of funny money economics. All to keep Labour in power.
Sub
I am currently looking to relocate to Spain or Portugal; bugger winter, even here.
There are approximately 3 years unoccupied or incomplete houses in Spain but the average price has dropped, statistically by about 10-15%, depending where and what.
This did not aked any sense to me so I asked people who know about these things.
1) The growth in wealth is Spain and Portugal (maybe) was based on € loans for housing and car purchase.
2) The banks, faced with implications of such an exposure because of the European downturn are sitting on a mountain of property loans.
3) Spanish banks did not get in up to their oxters in CDOs and Swaps like RBS etc. They had enough going in Iberia and getting themselves out of various debt holes in S America.
Spanish banks are extremely reticent to foreclose and will do anything to avoid that. Their position is to offer interest only periods (for years), repayment holidays and half buyouts. There are some serious suggestions of what could have been tried in the UK in carefully controlled conditions.
If Spanish banks foreclose, they would have to realise a market value for the asset so, by slowing the market down and not allowing a price drop, they hope to ride out the hole in their breeks until they can sew it up in a few years.
There are houses going at well under old values but you will never see them saying that the prices is dropped.
So if house prices really do start falling it is not the just the individuals who will broken it is also the banks.
If you have the cash and have contacts a killing could be made, assuming the market will pick back up in my or your lifestime. Rent with an option to buy at a preagreed price is also a good alternative and the banks would give me a mortgage at 59 up to 70 and in some cases banks don't ask to see salary details.
Just go for it, I say and stuff the kids' inheritance. Spend it now
as there are no pockets in a shroud.
I signed up for an account at LabourHome and posted a few comments on MPs expenses and left a link to the Holyrood rules.
I cannot sign back in. Maybe I am barred already.
Well, I have been thrown out of better places.
Nice capture Subrosa, that is a bit rich giving the Irish cheaper rates than us and yet as you say, it was the UK taxpayers who bailed out the banks..
The luck of the Irish eh ?
Just goes to show the Irish aren't as stupid as they're made out to be Spook.
Oh dear Billy, mind you I was banned from the Guardian comment. They didn't seem to like anyone talking Scottish politics.
Interesting Billy, some friends were talking about Spain just the other week. They'd been over there looking at property and there are certainly some bargains to be had. Think I prefer Switzerland but property prices have held there rather well.
Mind you. where I am is lovely so I'm in no rush to move anywhere. Life is slow and peaceful here and people have time for each other.
Oldrightie, not want a wee holiday flat in Tralee? Bonny place it is.
SR,
There's a long way to go in this Recession and we need to have full fiscal countrol of our affairs.
I say good luck to the Irish, nothing lasts forever. I don't agree with the "Banks'" comments in the Times, bunch of scammers and self deluded hoons.
CD
Why don't we invite the Irish banks into the UK.
Aren't there branches here already niko? I expect they have to adhere to UK rates.
You can open a € account in any main bank in the UK
You can get a € loan but you have to repay it in Euros so, you need an income in Euros or need to change from £Stg to Euros each repayment.
Then there is the gamble of the £ moving relative to the €
If the £ tanks you are stuffed. The other way round and you have won a watch
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