Regulator’s Warning on Interest Rates

admin — Tue, 04 May 2010 14:18:58 +0000

Cash-strapped homeowners were tonight warned the era of low mortgage interest rates was ending, with hikes an unfortunate but inevitable consequence of risky lending by banks.

Financial Regulator Matthew Elderfield said banks would continue to re-price their mortgage books in the coming months.

Bank of Ireland, Allied Irish Banks and Permanent TSB have already increased mortgage rates for tens of thousands of households.

“Part of the reason for such favourable rates was that the banks’ business models were, as we now know, fundamentally flawed, chasing unsustainable profits through risky property and development lending, profits which effectively subsidised aggressive campaigns for mortgage market share and unsustainably low interest rates,” Mr Elderfield said.

“That skewed business model now needs to be fundamentally re-calibrated - and at a time when banks’ costs of funding are significantly higher.

“Interest rate increases for borrowers are an unfortunate but inevitable consequence of this new world.”

Mr Elderfield said the Government faced difficult choices as well as a “moral hazard” in helping those in mortgage arrears.

The watchdog said many people got into debt because of the economy, but some people overstretched themselves.

“How much relief do you give to people in mortgage arrears, when the cost is ultimately going to be borne by the taxpayer,” he said.

“You’ve got this difficult moral hazard issue you have to be open about, that the taxpayers who manage their debts well may be reluctant to fund those who didn’t manage their debts so well.”

The watchdog also told TDs and Senators at the Economic Regulatory Affairs Committee that a rapid wind-up of scandal-hit Anglo Irish Bank would be prohibitively expensive and the current course was a reasonable way to minimise the cost to taxpayers.

He also signalled the Government may not need to inject further cash into the banks, claiming they had looked at “pretty dire situations” which did not require further recapitalisation.

It was the first time Mr Elderfield appeared before the committee since being appointed late last year.

The watchdog said it was clear that a fundamental overhaul of the regulatory regime was needed, and he said the banking crisis in Ireland had a home-grown element.

“We need to address the weaknesses in regulation that contributed to the scale of the financial crisis and keep pace with the strengthening of regulation that is occurring internationally,” he said.

“Our new approach requires assertive risk-based regulation underpinned by a credible threat of enforcement.”

Asked if he would be going after those who have done wrong, Mr Elderfield said that his office would leave prosecutions to gardaí.

He said the resources available to the regulators before the financial crisis was miles off what was needed.

“This has perhaps been my biggest area of surprise since I’ve come into my job, just how poorly resourced the financial regulator is, compared to what I know the benchmarks are for Bermuda, which I thought was pretty lightly resourced.”

Top Ten Tips on Selling Your Home.

admin — Tue, 19 Jan 2010 18:04:21 +0000

Here’s How:

1. Disassociate Yourself With Your Home.

· Say to yourself, “This is not my home; it is a house — a product to be sold much like a box of cereal on the grocery store shelf.

· Make the mental decision to “let go” of your emotions and focus on the fact that soon this house will no longer be yours.

· Picture yourself handing over the keys and envelopes containing appliance warranties to the new owners!

· Say goodbye to every room.

· Don’t look backwards — look toward the future.

2. De-Personalize.
Pack up those personal photographs and family heirlooms. Buyers can’t see past personal artifacts, and you don’t want them to be distracted. You want buyers to imagine their own photos on the walls, and they can’t do that if yours are there! You don’t want to make any buyer ask, “I wonder what kind of people live in this home?” You want buyers to say, “I can see myself living here.”

3. De-Clutter!
People collect an amazing quantity of junk. Consider this: if you haven’t used it in over a year, you probably don’t need it.

· If you don’t need it, why not donate it or throw it away?

· Remove all books from bookcases.

· Pack up those knickknacks.

· Clean off everything on kitchen counters.

· Put essential items used daily in a small box that can be stored when not in use.

· Think of this process as a head-start on the packing you will eventually need to do.

4. Rearrange Bedroom Closets and Kitchen Cabinets.
Buyers love to snoop and will open closet and cabinet doors. Think of the message it sends if items fall out! Now imagine what a buyer believes about you if she sees everything organized. It says you probably take good care of the rest of the house as well. This means:

· Alphabetize spice jars.

· Neatly stack dishes.

· Turn coffee cup handles facing the same way.

· Hang shirts together, buttoned and facing the same direction.

Line up shoes.

5. Rent a Storage Unit.
Almost every home shows better with less furniture. Remove pieces of furniture that block or hamper paths and walkways and put them in storage. Since your bookcases are now empty, store them. Remove extra leaves from your dining room table to make the room appear larger. Leave just enough furniture in each room to showcase the room’s purpose and plenty of room to move around. You don’t want buyers scratching their heads and saying, “What is this room used for?”

6. Remove/Replace Favorite Items.
If you want to take window coverings, built-in appliances or fixtures with you, remove them now. If the chandelier in the dining room once belonged to your great grandmother, take it down. If a buyer never sees it, she won’t want it. Once you tell a buyer she can’t have an item, she will covet it, and it could blow your deal. Pack those items and replace them, if necessary.

7. Make Minor Repairs.

· Replace cracked floor or counter tiles.

· Patch holes in walls.

· Fix leaky faucets.

· Fix doors that don’t close properly and kitchen drawers that jam.

· Consider painting your walls neutral colors

· Replace burned-out light bulbs.

· If you’ve considered replacing a worn bedspread, do so now!

8. Make the House Sparkle!

· Wash windows inside and out.

· Rent a pressure washer and spray down paths and exterior.

· Clean out cobwebs.

· Re-caulk tubs, showers and sinks.

· Polish chrome faucets and mirrors.

· Clean out the refrigerator.

· Vacuum daily.

· Wax floors.

· Dust furniture and light fixtures.

· Bleach dingy grout.

· Replace worn rugs.

· Hang up fresh towels.

· Clean and air out any musty smelling areas. Odors are a no-no.

9. Scrutinize.

· Go outside and open your front door. Stand there. Do you want to go inside? Does the house welcome you?

· Linger in the doorway of every single room and imagine how your house will look to a buyer.

· Examine carefully how furniture is arranged and move pieces around until it makes sense.

· Make sure window coverings hang level.

· Tune in to the room’s statement and its emotional pull. Does it have impact and pizzazz?

· Does it look like nobody lives in this house? You’re almost finished.

10. Check Curb Appeal.
If a buyer won’t get out of her agent’s car because she doesn’t like the exterior of your home, you’ll never get her inside.

· Keep the footpaths cleared.

· Mow the lawn.

· Paint faded window trim.

· Plant yellow flowers. Yellow evokes a buying emotion.

· Trim your bushes.

Make sure visitors can clearly read your house number.

Follow these simple steps to give yourself the best possible chance of making a sale.

Mortgage Plus ireland

Regulator’s Warning on Interest Rates

Top Ten Tips on Selling Your Home.