Figures from the CSO earlier in the week suggested that property price inflation had pretty much stalled nationally in the year to June with prices in the capital down 0.7%.It will take several months for a full picture to emerge but, so far, the anticipated 10 to 12% pullback in prices doesn't appear to be materialising.
What's more, the banks recently set aside massive amounts of money to cover the cost of potential bad loans down the tracks.Why are the banks so keen to get new mortgage customers right now? Avant Money says it plans to offer fixed rates under 2% to new customers here from the Autumn. The products will be offered through the broker network.
"There's still a lot of debate over the merits of cashback deals with many experts complaining that they have led to higher interest rates for mortgage holders here." He pointed out that the savings on a reduced interest rate loan, without the inducement of a cashback offer, could amount to tens of thousands of euro over the lifetime of a loan."If you believe you get free lunches from the bank, you will be a hungry person and a very disillusioned one," he stated.The banks will undoubtedly come under pressure in the months ahead to further cut mortgage interest rates, putting even more strain on their margins.