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How to Apply for a Mortgage and Super Size How Much You Can Borrow – 3 Insider Tips

How to apply for a mortgage

Buying a home is probably the biggest financial decision you will ever make and one of life’s most stressful times. Understanding how to apply for a mortgage can help you secure your dream home and reduce your stress levels.

That’s because how you apply makes a big difference to how much you can borrow and how long the whole process will take.

With our Ultimate Guide to how to apply for a mortgage, you could borrow up to 4.5 times your joint income and get the whole thing done and dusted in less than 3 months.

Here’s our top 3 how to apply for a mortgage tips

  • Maximise your savings in the 6 months before you apply to maximise what you can borrow
  • Understand how best to navigate the application process to minimise delay
  • Use a broker with a wide selection of lenders to maximise your approval odds

Read on to see understand how you should apply for a mortgage to maximise how much you could borrow while minimising the hassle factor.

  1. Work Out How Much You Can Borrow – How to Apply for a Mortgage
  2. Maximise My Approval Chances – How to Apply for a Mortgage
  3. Get Some Help – How to Apply for a Mortgage
  4. What Happens Next – How to Apply for a Mortgage

Work Out How Much You Can Borrow – How to Apply for a Mortgage

The first step is to work out how much mortgage you can get, you might not need to borrow up to your limit, but it will help you to understand your maximum budget in case you find yourself in a bidding war for your new gaff.

To help avoid a credit bubble like the one that went pop back in 2008 the Central Bank sets some absolute maximum limits that no lender can go beyond.

If you are buying your home to live in, the limit is the lower of either

  • Income – 4.5 times your joint gross income per year
  • Deposit – 10 times your deposit

Wait a minute before you rush off and bid on that dream home, the Central Bank only allows 20% of all borrowers in any year borrow up to these limits.

The lenders are therefore very picky about who gets these ‘exceptions’ only putting forward people with squeaky clean credit histories and very high levels of disposable income.

If you fall outside the top 20% of applications then the limits are

  • Income – 3.5 times your joint gross income per year
  • Deposit – 10 times your deposit for first time buyers and 5 time for others

As part of the application process the lenders will also run the rule over your ability to repay the loan. Based on this they may lend you less than the limits above or indeed nothing at all.

For most people the 3.5 times salary limit is the one that applies and gives the best idea of your budget. However if you need an exception to make up the numbers or want to maximise your odds of approval read on.

Maximise My Approval Chances – How to Apply for a Mortgage

Lenders try to work out, based on information on your application, the likelihood of you not paying back the mortgage in full. If a loan goes south that’s a big hole in their profits, so the more risk they think you are the less they will lend.

This means you can maximise the mortgage you can get by knowing what they are looking for and getting your finances in shape in advance of application.

The 6 months before the application is critical as lenders will look at your bank statements in this period to assess your ability to repay the loan as part of the application.

So what are the key things you can do to maximise your approval chances?

  1. Maximise your Income – Many lenders include 50% of overtime, bonuses and commission, so maximising these can be a big help.
  2. Clear your outstanding loans – These eat into your ability to repay and are usually higher interest than your mortgage will be.
  3. Secure your employment – Make sure you have finished any probation period or have a long term contract.
  4. Don’t splurge – Minimise your outgoings, so you show consistent evidence of saving some money at the end of every month.
  5. Delete your Paddy Power app – Any major spend on online gambling is a big no no and don’t try to be smart by moving it to your Revolut account the lenders are wise to that and will ask for statements.

Keep your nose clean for 6 months and you will demonstrate to the lenders you can be trusted and will maximise your mortgage potential.

Get Some Help – How to Apply for a Mortgage

So you have 6 months of sparkling bank statements and you are sick of living on your mates couch, what do you do next?

You have two choices to kick start the application process.

  1. Apply to one of the lenders directly
  2. Apply to a lender through a broker

Which lender you apply to can make a huge difference to your approval chances and what you will pay over the course of the mortgage. That’s why we recommend using a broker for your application.

A broker can look at your situation and match you with the best lender to maximise your approval chances and minimise your repayments. Brokers are often free to use and are impartial as they get paid the same commission 1% of the mortgage value by all the lenders.

Not all brokers are created equal though. Check out if your broker has:

  • Access to the best lenders for rate Avant Money, ICS, Haven and Finance Ireland
  • No fees or low fees for your type of application
  • An online application process to make the paperwork easier
  • A best rate guarantee

What Happens Next – How to Apply for a Mortgage

Once you have chosen your broker you can get the application underway.

1. Apply Online

First up you will need to confirm your personal and financial details and upload supporting documents onto the brokers application platform.

The documents are needed to help prove you can repay the mortgage and also prove you are who you say you are.

2. Choose Mortgage & Lender

Your broker then reviews your details and recommends the best lender and mortgage product. As each lenders approval policy is different they will match you with the best one for you.

For example, ICS lend more to public servants and is good for short term fixed rates. Avant Money on the other hand don’t do exceptions above the 3.5 salary, but have the best long term fixed rates.

They will also run you through the other options and why they think they aren’t a fit for you at this point.

3. Get Approval In Principle (AIP)

Your broker will then use the documents and details you submitted to apply for approval with the rate and lender you picked. It can take 3 days to 3 weeks to get approval depending on the lender you choose (your broker will fill you in on this).

You can now go bid on a property knowing you have an approval in your back pocket!

4. Get Final Loan Offer

Once your offer has been accepted your broker will have it valued by an independent estate agent. This is so the lender can have confidence that the asset that they are securing the lending on (your new house), is worth what you say it is.

Once the lender has all the details on the property from the broker they issue the final offer, which includes any conditions before you can access or ‘drawdown’ the loan. These are usually things like you must have a life protection policy and home insurance in place, which your broker will help you arrange.

5. Complete House Purchase

Ta Da! The moment you have been waiting for, once the conditions are met the loan is released and you get the keys to your new home!

In a Nutshell – How to Apply for a Mortgage

How you apply for a mortgage makes a big difference to how much you can lend and your approval chances.

The first thing to do is to work out how much you can borrow, we have a handy mortgage calculator for that here.

Then you need to do is clean house on your finances 6 months before you apply.

You should then engage with a broker who can guide you to the best lender and help take the pain out of the paperwork. You can check out moneysherpa’s own in house broker teams the mortgage sherpas here.

Finally, make sure you know the process and where you are in it, so you can reduce your stress and maximise your chances of getting your dream home.

We have loads more on help to buy grants, the best rates and mortgage provider reviews here.

If you want to have a chat and talk it through you can click for a mortgage check up with one of our sherpas here.

  • Rates from 2.29% APRC
  • Fixed for 3-30 Years
  • Tighter approval policy
  • Rates from 2.29% APRC
  • Fixed for 3-7 Years
  • Flexible approval policy
  • Rates from 2.53% APRC
  • Fixed for 3-25 Years
  • Flexible approval policy

You can get more detail on the documents required from the CCPC [1].

The €236 Million Mortgage Switch Ireland – Why Switching is the New Black

switch mortgage ireland
Mortgage Switch Ireland 2021

The big mortgage switch Ireland.

More people have completed a mortgage switch this autumn than for a decade. Over 1,616 in Q3 2021, the highest since 2009.

The mortgage switch is back because interest rates have now hit historic lows.

The average saving for a mortgage switch at the end of 2019 was a whopping €21,626. With over 150,000 Irish mortgage holders set to save a staggering €236 Million by switching.

With rates falling and prices rising since 2019, those switching savings have only gotten bigger since then.

Mortgage switching is set to explode in the coming months quadrupling to the rates seen in other countries across Europe and back at the height of the boom.

Read on to get the inside scoop on the big mortgage switch and see exactly what it might mean for you and your mortgage.

  1. Why Mortgage Switching is the New Black – Mortgage Switch Ireland 2021
  2. How Much can You Save by Switching Mortgage? – Mortgage Switch Ireland 2021
  3. Why isn’t Everyone Switching? – Mortgage Switch Ireland 2021
  4. In a Nutshell – Mortgage Switch Ireland 2021

Why Mortgage Switching is the New Black – Mortgage Switch Ireland 2021

According to the latest figures from the Banking and Payments Federation [1] more people have completed a mortgage switch this autumn, at 1,616, than since 2009 just after the banking crash.

The chart below shows 1% of the 674,176 mortgage holders in Ireland are now switching every year, that’s over 6,700 and it’s only heading one direction.

Switching rates since 2014 (Source: BPFI Report Q3 2021)

The mortgage switch is so fashionable right now due to mortgage rates hitting record lows.

  • 2015 Existing Rates 4.3% v New Rates 3.9%
  • 2020 Existing Rates 3.48% v New Rates 2.68%

So back in 2015 a mortgage switch would cut your mortgage rate by 0.40%, but by the end of 2019 the difference had doubled to 0.80%. That makes new rates over 20% cheaper than existing rates, a record saving.

You can see this increase in ‘spread’ in the chart below. The Standard Variable Rate for Existing Loans in green has hardly dropped at all, as the banks have tried to keep their existing customer rates high.

The 1 to 3 year fixed new lending rate in red however has plummeted as new lenders, Avant Money, ICS and Finance Ireland, have entered the market.

Mortgage Rates (Source: Central Bank of Ireland Economic Letter No.12 2020)

These rates are the lowest since trackers were on the go back in 2008.

This widening rate gap alone is enough to drive increased switching, but increasing house prices have further sweetened the deal. As home values rise the loan to value ratio gets smaller.

Lenders see low loan to value ratios as less risk, allowing customers to access even lower rates.

The mortgage switch double whammy, the widening rate gap and lower loan to values, is creating a switching surge.

How Much can you Save by Switching Mortgage? – Mortgage Switch Ireland 2021

So this begs the question, should I switch and how much will I save if I do?

There are over 670,000 residential mortgage holders in Ireland right now, 36% of these are on a tracker mortgage tied to the European Central Bank rate. If you’re on a tracker you almost certainly would be better off staying put.

That leaves the 64% of mortgage holders not on a tracker, which equals over 430,000, 27% of all Irish households.

Almost all of these will save something by switching, even those on a fixed rate, but this is where it gets really juicy.

According to the Central Bank almost 150,000 will save more than €10,000 by switching, a combined saving of €236 million. You can see exactly how the 150,000 breaks down below.

Central Bank SwitchingFixedVariableTrackerTotal
All Mortgage Holders171,105259,276243,795674,176
Save something29,082153,1900182,272
Save more than €10,00020,83789,657110,484
Save more than €30,0008,07628,49936,575
Central Bank of Ireland Economic Letter 12 2020

We ran the numbers for an average mortgage switch ourselves, just to be sure.

  • Average mortgage switch = €235,401
  • Average term = 22 years
  • Average reduction in rate = 1%
= An Average Saving of €21,626

Yes you read that right, the average mortgage switch saving was €21,626 according to the Central Bank’s own figures.

Why isn’t Everybody Switching? – Mortgage Switch Ireland 2021

Hang on a minute, shouldn’t mortgage switching be much higher if there is over €236 Million to be saved?

It most certainly should, switching in Ireland lags almost all developed countries world wide with only 1% switching every year.

Italy has over four times that rate of switchers at 4.1% and the Aussies see over 8% of their variable rates switched per year. Across the pond in the UK switching rates are also more than double that here.

As the savings between existing and new rates are much bigger than that seen in other countries, what exactly is going on?

Part of the reason is due to tracker mortgages. The super generous terms offered by the Irish banks back in the boom, has led to over a third of all mortgage holders staying put and holding on to what they have for dear life.

The rest of the gap is usually put down to the idea that it’s not in the Irish psychology to switch, we are a nation loyal to a fault. Let me bust that particular myth right here, the data shows the Irish love a great deal as much as anyone.

Remember our first chart showing how we were at record switching levels? Let’s zoom out a little on the data and see the trends if we go back in time a little further.

Switching Rates since 2003 (Source: BPFI)

That’s right, before the crash mortgage switching in Ireland was running at 4% per year, right up there with other nations.

Due to negative equity and uncompetitive rates in the eight years after the crash Ireland simply got out of the habit of switching. It’s just not been a thing for almost a decade, so has fallen off the radar.

I’ve listed the top 4 reasons for not switching below, based on the latest Central Bank data.

Reasons for not switching (Source: Central Bank)

So what are the answers to each reason?

  1. I do not know what the legal costs of switching would be. Answer: The solicitor cost and a valuation should cost less than €1,500 all in.
  2. I might switch if there was a long term guarantee of interest rate advantage. Answer: With Avant Money for example you can fix your rate for up to 30 yrs.
  3. I do not know if I would save money. Answer: You almost certainly will if you’re not on a tracker.
  4. Switching would be too complex. Answer: Use a broker for both advice and to take the pain out of the paperwork they’re free to use in many cases.

With the barriers falling and savings increasing it’s only a matter of time until we are back up at the 4% mark and mortgage switching is the new big thing.

In a Nutshell – Mortgage Switch Ireland 2021

After falling out of fashion the mortgage switch is about to make a comeback.

  • Rates are at record lows and savings at record highs.
  • The average saving is €21,626 massively out weighing the costs of switching
  • You can fix rate anywhere up to 30 years to ‘lock in’ your savings
  • If you use a broker you can switch for free in less than 3 months

The clock is ticking though, with inflation rising to over 5% variable rates will probably start to rise over the next 6 months. By switching to a new lender with a fixed rate of 5-15 years you can make savings of over €10,000 while also protecting your home from increased repayments.

What’s Next – Mortgage Switch Ireland 2021

It makes more sense than ever to compare mortgage rates Ireland 2021 with massive savings available. There probably isn’t another financial decision that has as big an impact on your wallet.

The non bank lenders ICS, Avant Money and Finance Ireland have really leapt ahead of the pack this year offering 0.5% lower than other lenders across all mortgage types. This has left the banks, who are weighed down with legacy costs, trailing in their dust.

These non bank lenders are only available via a mortgage broker or via one of our own mortgage sherpas, click for a mortgage check up with one of our sherpas here.

  • Rates from 2.29% APRC
  • Fixed for 3-30 Years
  • Tighter approval policy
  • Rates from 2.29% APRC
  • Fixed for 3-7 Years
  • Flexible approval policy
  • Rates from 2.53% APRC
  • Fixed for 3-25 Years
  • Flexible approval policy

If you want to see what you could save by calculating your repayments you can click here.

If you want to know more about switching you can click here.

If you want to get your savings started right now, set up a free no obligation video call with a mortgage sherpa here.

Switcher Mortgage Ultimate Guide – Cash Back Hack, 3 Tips to Maximise Your Savings

switcher mortgage
switcher mortgage

We all know switching your mortgage is the biggest thing you can do to save loads of cash, but what if I told you there was a way to make these savings not just once, but four times over.

Sounds too good to be true right? It isn’t if you are prepared to put the effort in. By using the right strategy you can make the absolute most of all the juicy switching offers currently available.

There are nine different mortgage lenders in Ireland right now, with over 250 different mortgages on offer. In this rundown we will recommend the best switcher mortgage short term, the best switcher mortgage for the long term and the best switcher mortgage for multiple switchers.

The right switcher mortgage for you depends on whether you are looking to switch and stick or if you want to switch multiple times.

Based on our review of all 250 switcher mortgages in the market we recommend the following options.

  • Best switcher mortgage short term switching – ICS 3 year Fixed Rate
  • Best switcher mortgage long term switching – Avant Money 15 year Fixed Rate
  • Best switcher mortgage multiple switcher – PTSB Variable Rate

Read on to see which approach is the best fit for you and how much you could save.

If you want to see how different providers compare on your mortgage you can click here.

  1. Multiple Switcher, Cashback Hack – Switcher Mortgage
  2. Long Term Switcher – Switcher Mortgage
  3. Short Term Switcher – Switcher Mortgage
  4. What you should do, the verdict – Switcher Mortgage

Multiple Switch, Cash Back Hack – Switcher Mortgage

Irish Mortgage providers use either introductory fixed rates or once off cashback offers to tempt new customers to switch.

Cashback offers from EBS, PTSB and Bank of Ireland give you 2% of the total mortgage amount back in cash when you take out the mortgage. So on the average switch of €240,000 that’s €4,800 in cash at drawdown as shown below.

Compare
Cashback
Cashback MinCashback Max Cashback conditions
Permanent TSB0%2%2% not available to 4 year fixed term.
EBS2%3%2% on drawdown 1% after 5 years
Bank of Ireland2%3%2% on drawdown 1% after 5 years

You should tread carefully though as the rates from these providers are some of the highest in the market. Surprise surprise, as you can see from the table below the highest follow on and variable rates are with the three providers with the cash back offers.

Compare
Follow on Rates
up to
50% LTV
Follow on Rate
up to
60% LTV
Follow on Rate
up to
70% LTV
Follow on Rate
up to
80% LTV
Follow on Rate
up to
90% LTV
Follow on Rate
Avant Money2.5%2.5%2.5%2.75%2.75%
ICS Mortgages2.65%2.7%2.7%2.7%2.7%
Finance Ireland2.75%2.95%2.95%2.95%3.15%
Haven Mortgages2.75%2.95%2.95%2.95%3.15%
AIB2.75%2.95%2.95%2.95%3.15%
KBC3%3%3.05%3.05%3.3%
EBS3.3%3.5%3.5%3.5%3.7%
Permanent TSB3.7%3.7%3.7%3.7%3.9%
Bank of Ireland3.9%3.9%4.2%4.2%4.5%
Probable follow on variable rates post fixed period based on current variable rates by provider

If you are prepared to switch multiple times though you can get your hands on the cash back offers without paying the higher on-going rates. One of the few times you can really have you cake and then get to eat it afterward.

So if you take out a variable mortgage with PTSB you can take up the cashback offer, then switch to Bank of Ireland take out another variable rate cashback offer, then EBS for your final variable rate cashback offer.

On the average switcher mortgage of €240,000 that’s

  • €4,800 Cash Back (PTSB)
  • €4,800 Cash Back (BoI)
  • €4,800 Cash Back (EBS)
  • Total Cash = €14,400

Even better when you have picked up your cash from EBS you can then switch to a fixed rate deal through a broker with Avant Money or ICS to get on a low interest rate. This last step is really important as it can save you as much as the multiple switch hack.

Check out our advice on the best longer term low interest rate options below.

Best Long Term Switcher Mortgage – Switcher Mortgage

This image has an empty alt attribute; its file name is recommended-1024x1024.jpg
ProviderAPRCProductLTVApproval rate
Avant Money2.29%15yr fixed<60%Medium

The Avant Money 15 year fixed rate product has the lowest introductory rate of 1.95% in the market for the first fifteen years, with a market leading APRC over the lifetime of the mortgage of 2.29%.

If you know you staying put and want to lock out future interest rate rises this may be the mortgage for you.

The leading score on rate, whilst not dropping many points on the basis of flexibility, makes the Avant Money 15 year fixed product the best mortgage rate choice overall. 

Best fixed short term mortgage rate – Switcher Mortgage

ProviderAPRCProductLTVApproval rate
ICS Mortgages2.38%3yr fixed<60%High
Avant Money2.39%4yr fixed<60%Medium
Avant Money 2.43%3yr fixed<60%Medium

If you want to save on legacy rates, but want to keep your options open then there are still some good options out there.

The low fixed rate period is shorter so the overall cost of the mortgage is higher, but the mortgage rate across the term is still around 2.5% APRC.

ICS Mortgages pip Avant at the post for the shorter fixed term products due to their more flexible credit policy. However if you have a sparkling credit history the Avant Money 3 year and 4 year fixed at 2.39% & 2.43% respectively are so close it makes no difference.

What You Should Do, the Verdict – Switcher Mortgage

So should you make multiple switches?

Taking the cashback offers and switching multiple times is perfectly legal. As long as you choose a variable rate rather than a fixed rate you aren’t tied in to a minimum period before switching.

You will have to pay solicitors fees though for each switch, these come in at around €1,000 a switch, although many solicitors will knock a bit off for multiple switches if you haggle.

You also need to be prepared to put in the hard yards, although switching is a lot easier than taking out a new mortgage, switching 4 times over isn’t to be taken lightly.

Finally, mortgages are a major financial commitment and can be pretty complex. While your working through your multiple switch master plan, the market might change, the providers conditions might change and your own circumstances might change.

For most people then making the switch once to a lower on-going interest rate is the best policy. You still save thousands without all the hassle and risk of the multi switch strategy.

That’s why we don’t recommend the multi switch strategy. The reality is that although on paper the multi switch strategy makes sense, for most of us life gets in the way and it’s way too much hassle.

That’s why we would recommend using a broker to help you switch to a fixed rate product with a low on-going rate from either Avant Money or ICS. The lenders with the lowest rates can usually only be accessed by brokers, many brokers are free to use and they can take the pain out of the paperwork. The payback might not be as immediate as with the multi switch strategy, but for much less work you will still save thousands and get the best value.

If you are prepared to put in the work and take on the risks involved in a multi switch strategy however, don’t forget to talk to a broker about that final step to switch to a long term lower rate, otherwise you will lose almost all you gained by collecting those cashbacks in the first place.

What’s Next – Switcher Mortgage

It makes more sense than ever to compare mortgage rates Ireland 2021 with massive savings available. There probably isn’t another financial decision that has as big an impact on your wallet.

The non bank lenders ICS, Avant Money and Finance Ireland have really leapt ahead of the pack this year with a 0.5% discount across all mortgage types. This has left the banks, who are weighed down with legacy costs, trailing in their dust.

These non bank lenders are only available via a mortgage broker or via one of our own mortgage sherpas, click for a mortgage check up with one of our sherpas here.

  • Rates from 2.29% APRC
  • Fixed for 3-30 Years
  • Tighter approval policy
  • Rates from 2.29% APRC
  • Fixed for 3-7 Years
  • Flexible approval policy
  • Rates from 2.53% APRC
  • Fixed for 3-25 Years
  • Flexible approval policy

Overall, the Avant Money 15 year fixed rate came clearly out on top as the overall best mortgage rate. With their market leading APRC of 2.29%, which saves an amazing €20,000+ for switchers in most cases. Avant Money’s 7 and 4 year products are also a great choice for those looking for shorter or medium fixed terms.

If you want to see what you could save by calculating your repayments you can click here.

If you want to know more about switching you can click here.

If you want to get your savings started right now, set up a free no obligation video call with a mortgage sherpa here.

Annual Percentage Rate Charge (APRC) calculated on a €100,000 loan over 20 years. APRC represents the average rate across the lifetime of a typical mortgage and is recommended as the best rate to use for comparisons by the CCPC. [1]

Market Insider – Investing Ireland August 2021

Investing Ireland August 2021
Investing in Ireland 2021

Fiat 50 motors on! – Investing Ireland August 2021

Last month marked the 50th anniversary of the “Nixon Shock” of August, 1971, whereby the US dollar’s unpegging from its Gold Standard straitjacket served to liberate the fiat currency printing presses of the global financial system in a manner that has fuelled a debt-financed asset-inflation odyssey for three generations of investors.

Equity markets duly celebrated this landmark anniversary with their 7th consecutive month of gains, that Worry Wall of Delta variant, peak growth (for economies and earnings), inflation risk, Fed taper talk and now Afghanistan still being climbed in resolute fashion by a TINA investment community amply lubricated by the excess liquidity drip-feed of current central bank policy settings.

The MSCI World advanced by a further 2.5% in August, its recovery from the March, 2020 lows now exceeding 100% (dividends included).

Value indices once again lagged Growth on both sides of the Atlantic, although the gap narrowed from previous months, with financials extending their recovery back towards cycle peaks.

The S&P500 secured it’s 54th record close ytd above 4,500 by month’s-end, whilst the STOXX 600 enjoyed 10 straight gains, its longest run of consecutive daily advances since 2006. Equity markets were not without their mid-month swoon, however, this a recurring (and perhaps options-expiry related) feature of the past several months.

Some acute intra-month volatility across bond and commodity complexes also; US real yields rebounded sharply from fresh record lows (-1.22% in 10yr TIPS) as taper talk resurfaced, Gold endured a $115 flash crash to sub-$1700 early-August before recovering above its $1800 pivot point, and Brent crude tested both ends of a $65-75 range-trade as COVID uncertainties abounded.

By contrast, currency markets were an oasis of calm, with Eur/USD still engaged in a sideways meander above its perceived 1.1600 floor.

Equities – Investing Ireland August 2021

Another month of gains for global stock markets, their 7th straight advance, both S&P500 and STOXX 600 indices now reporting total returns of 20%+ on a ytd basis.

A stellar Q2 corporate earnings season remained the primary impulse, although the Delta variant did impact on sectoral performance, the more defensive Nasdaq (+4.1%) once again showing the way on Wall Street.

Emerging markets (+2.6%) enjoyed their best performance since January, courtesy of renewed liquidity support from the People’s Bank of China, while the US Senate’s passage of a $550bn bipartisan infrastructure package was a timely reminder that overall policy support for economies and markets is not yet sated, the Fed’s taper talk notwithstanding. 

Bonds Investing Ireland August 2021

On the surface, bond markets were becalmed in August, with US Treasuries reporting their smallest move (-0.2%) in either direction for more than a year. However, yields did gyrate materially intra-month, with investors torn between the impact of a globally spreading Delta variant and that potential policy pivot by the major central banks.

The key 10yr Treasury yield touched a low of 1.13% early in the month, before an avalanche of Fed taper talk forced an abrupt about-turn to a 1.37% high late in the period.

The sell-off in Treasuries was compounded by renewed weakness in European government bonds, where the region’s highest headline inflation rate (+3.0%) since November, 2011 raised the spectre of a PEPP (asset purchase) dial-back by the ECB. 

Currencies Investing Ireland August 2021

A late-Summer lull descended over the foreign exchange markets last month, with relatively modest changes on the major crosses, although the US Dollar Index did manage to eke out a further 0.5% gain, while Sterling lost some ground on both USD and Euro fronts.

The dominant Eur/USD cross had an interesting month, recovering steadily from 1.1660 lows mid-August to a 1.1810 close. This exchange rate is now tracking relative short-term interest rate movements quite closely, and it has been the firming up of Euribor quotes in the midst of strengthening Euroland data-flow and some quasi-hawkish soundings from certain ECB Governors that is now supporting a revival of investor interest in the single currency.

Commodities Investing Ireland August 2021

Although the CRB index flatlined in August following its recent steady gains, the energy components suffered their first decline since March, with both WTI (-7.4%) and Brent crude (-4.4%) selling off on concerns over slowing demand in China and the Delta variant more generally.

Industrial metals prices were also softer for the same reasons, whilst Gold prices endured a rollercoaster month, rebounding from a $115 flash crash in early-August to close broadly unchanged, that $1800 valuation level still exhibiting a magnetic attraction, be it  from above and below.

Asset Market Outlook Investing Ireland August 2021

  • Equity markets now entering their seasonally most vulnerable period, with the build-up of more defensive investor positioning signalling correction concerns
  • A mild pullback is certainly overdue although, remarkably, stocks are already cheapening on standard valuation metrics (both absolute and relative to bonds), whilst the degree of overall policy support (monetary and fiscal) remains acute
  • Tentative indications of slowly declining Delta spread following two months of gains harbinger of a “Reopening Trade” revival to favour rotation back to cyclical stocks 
  • Corrective rally in global bond markets has seemingly now run its course, the prospective dial-back of Fed and ECB asset purchases ensuring more adverse supply/demand conditions and a return to higher yields
  • USD rally finally running out of steam on fading relative interest-rate support, with Eur/USD eyeing a key 1.1950 retest, and scope for speculative longs to rebuild after a 3-mth flush-out
  • Gold prices still not straying too far away from their $1800 pivot, with ETF holdings now stabilised and Asian jewellery demand in recovery mode; needs to vault $1830 for breakout

Asset Allocation Investing Ireland August 2021 Outlook

                                  Equities      Bonds       Credit      Forex/Euro

US                                         +1              -2              -1                 -1

Euroland                              +2              -2              -1                 N/A

UK                                         +2              -2              -1                  0

Asia                                       +1              -1              -1                 -1

Code +3/-3 very attractive/ very unattractive

Financial Market Performance Data Investing Ireland August 2021 Outlook [1]

AugJulJunQ3YTD
Equity
MSCI WORLD2.51.81.54.418.3
MSCI EM2.6-6.70.2-4.32.9
S&P 5003.12.42.35.521.6
EUROSTOXX 6002.22.11.54.320.8
FTSE 1002.10.10.42.213.2
ISEQ5.61.9-0.77.620.1
Gov Bonds
US TREASURIES-0.21.40.81.2-1.5
EUR SOVEREIGNS-0.51.80.51.3-1.7
IRISH GILTS-0.61.90.41.3-2.4
Corp Bonds
US HIGH GRADE-0.21.21.61.10.1
EUR HIGH GRADE0.61.20.4-0.80.3
Commodities
CRB INDEX0.12.23.72.330.1
OIL – WTI-7.40.710.8-6.841.2
COPPER-2.74.3-8.11.523.9
GOLD0.12.5-7.22.6-4.5
FX
EUR/USD-0.50.1-3.1-0.4-3.3
EUR/STG0.6-0.4-0.40.2-4.1
Source: DB Research

Next steps

You can read our more investing in Ireland analysis here.

You can check out our other guides on Investing in Ireland here.

You can find out where to get individual investing in Ireland and financial advice in your area here.

Help to buy scheme Ireland 2021- What it is and how you could claim €30,000 from it

Help to Buy scheme Ireland 2021

The Help to Buy Scheme Ireland 2021 allows first time buyers in Ireland to claim 10% of the value of their property, which can be anywhere up to €30,000. 

In this article, I will be going into detail about how the Help to Buy scheme works, what you have to do to qualify, how much can be available to you, how to get your taxes refunded, how to get up to date on your taxes so you can qualify, and finally how to apply.

1.How does the Help to Buy scheme Ireland 2021 work?

2. How do I know if I qualify for the Help to Buy scheme Ireland 2021?

3. How much is available to me from the Help to Buy scheme Ireland 2021?

4.How will I receive my tax refund from the Help to Buy scheme 2021?

5.How can I get up-to-date on my taxes for the Help to Buy scheme Ireland 2021?

6.How can I apply to the Help to Buy scheme Ireland 2021?

7. A summary of The Help to Buy scheme Ireland 2021. 

1. How does the Help to Buy scheme Ireland 2021 work?

The Help to Buy scheme Ireland 2021 is a Government tax refund scheme.

It allows first time buyers to claim 10% of their property value to help them pay deposits on newly built homes.

This incentive offered by the Irish Government lasts until the 31st of December, 2021.

In order to claim from the Help to Buy scheme Ireland 2021, you must have paid the equivalent amount of 10% of your property value in tax in the previous 4 years before moving into your new home. 

This refers to Income Tax and DIRT.  You cannot claim from USC or PRSI. 

Don’t worry too much if you feel that you haven’t paid enough tax to qualify, as in actual fact most people in Ireland likely have paid 10% of their property tax within 4 years and can therefore apply to have their tax refunded for their new home under the Help to Buy scheme. 

2. How do I know if I qualify for the Help to Buy scheme Ireland 2021?

Even if all your taxes are up to date, there are still some more conditions that you need to take into consideration before applying to this scheme.

In order to qualify, you must-

  • Be a first time buyer in Ireland and outside of Ireland.
  • Be moving in with an applicant who is also a first time buyer if more than one person will be purchasing the home, ie) if one applicant is not a first time buyer then you cannot qualify for this scheme. 
  • Be moving into a newly built or self built home.
  • Be using the property as your principal private residence for 5 years.
  • Be moving into a home that isn’t a conversion or restoration, however a conversion of a non-domestic home into a domestic home can qualify. 
  • Be moving into a home worth less than €500,000.
  • Have a mortgage with a loan to value of 70%. For example, if you are purchasing a home worth €200,000, your mortgage must be €175,000.
  • Not pay for home in cash. 
  • Not be an investor or landlord.
  • Not be using property for investment purposes. 
  • Have a solicitor or contractor registered with the Revenue Commission.

While it may seem that there are many conditions to this scheme, remember that this incentive is to help first time buyers get on the property ladder. 

Therefore if you are a first time buyer and have been tax compliant in the 4 years before moving into your new property, you will most likely be able to qualify for this scheme. 

3. How much is available to me from the Help to Buy scheme Ireland 2021?

Under the Help to Buy scheme Ireland 2021, first time buyers can claim, 

  • 10% of the purchase price of their new build, for example a home worth €200,000 can claim €20,000.
  • The amount of Income Tax and DIRT paid in the previous 4 years before moving.

Or for self-builds, 

  • 10% completion value of their self-build home. 

In order to claim from this scheme, your home must be valued at €500,000 or less. 

The most you can claim from this scheme is €30,000, meaning that even if your home is valued at more than €300,000, you still can only receive €30,000 max.

Value of propertyRates Total claim received
€300,00010%€30,000
€400,00010%€30,000- cannot receive more than €30,000.

4.How will I receive my tax refund from the Help to Buy scheme 2021?

So if you qualify for this scheme, your tax refund will be paid to you depending on your property. 

If you buy a new build after 1 January 2017 (4 years ago), the refund is paid directly to the builder.

If you self-build the property after 1 January 2017, the refund is paid to a bank account you hold with your loan provider.

This money can be used to help first-time buyers cover the costs of their deposits.

5. How do I get my taxes up to date for the Help to Buy scheme Ireland 2021?

In order to claim from this scheme, you must be fully tax compliant and all your taxes must be up to date. 

However if your taxes are not up to date, you must complete a Form 12 if you are a PAYE earner or a Form 11 if you are self-employed.

You must fill out these tax forms in the 4 year period before you move into your new home and pay any outstanding taxes. 

6. How can I apply to the Help to Buy scheme Ireland 2021?

If you think you qualify for the help to buy scheme Ireland, then you should go to Revenues MyAccount service, where you will be told how much tax refund is available to you as well as apply. 

7. In a Nutshell – Help to Buy Scheme Ireland 2021

In short, the Help to buy scheme 2021 is a great incentive for new first time buyers who are looking to find their way into today’s housing market.

If you are looking to buy a new home as a first time buyer then this scheme is designed to help you.

That is why we at moneysherpa believe you should check to see if you’re eligible for this scheme and apply as soon as you can before it ends on the 31st of December, 2021.

Next Steps – Help to Buy Scheme Ireland 2021

Wanting to find a mortgage for your new property? Contact one of our mortgage sherpas today free of charge!

Trying to save money as a first time buyer? Check out our top ten saving tips in Ireland here!

Want to see how much you could potentially save? Use our savings potential calculator here! Or you can check out our handy switching mortgage guide here.

If you have any questions about lenders or switching mortgages feel free to contact our QFA mortgage sherpas here at moneysherpa.

Stamp Duty Ireland 2021- What is Stamp Duty & Why You Need to Know About It

So what is stamp duty Ireland and do you need to pay it? Stamp duty is a tax that is paid when a property has been transferred from one person to another.

Stamp Duty Ireland.

When someone transfers their property onto you, you become the property owner and are charged a stamp duty tax.

Stamp duty is a tax charged on written documents that transfer ownership of land from one person to another. Stamp duty applies to all residential and non-residential properties. 

The amount of stamp duty you pay depends on how much your property is worth; so the more valuable your property, the more stamp duty you’ll pay.

In this article. I am going to be breaking down what stamp duty applies to, how it is calculated, the exemptions to stamp duty, will stamp duty be charged on new buildings, the new higher rate introduced in Ireland in 2021, the charges associated with stamp duty, stamp duty in regards to gifts and inheritance and an overall summary of stamp duty. 

  1. What does stamp duty apply to?
  2. How do I calculate stamp duty?
  3. What exemptions are there to stamp duty?
  4. Is stamp duty charged on new builds?
  5. What is the new higher stamp rate that has been introduced?
  6. What costs are involved with stamp duty?
  7. Do I have to pay stamp duty on a property I was gifted/inherited?
  8. Summary. 

1.What does stamp duty Ireland apply to?

Stamp duty will be applied every time you become a property owner. It applies to all properties, whether they be brand new or second hand. However new builds will not be subject to VAT, I go into this in more detail here.

Stamp duty applies to all residential properties such as houses, apartments or sites that will be used for buildings .

It also applies to non-residential property, such as land or housing sites without residential buildings. 

2. How do I calculate stamp duty?

In Ireland ,stamp duty is levied at 1% up to €1 million. Any property over €1 million is levied at 2%. 

Here’s an example excluding VAT-

Lets say you have a property worth €2 million. 

First €1 million1%€10,000
Remaining €1 million2%€20,000
Total stamp duty €30,000

For non-residential properties, stamp duty is charged at 6%.

So what is the difference between residential and non-residential properties?

To put it simply, a residential property is one suitable for dwelling, such as a home or an apartment. Stamp duty is charged at 1-2% for residential properties. 

Don’t worry too much about calculating the stamp duty of your own property, as your solicitor will do this for you. 

However, it’s still good to know roughly how much stamp duty you will have to pay before purchasing a property.

3.What exemptions are there to stamp duty Ireland?

Of course there are a few exceptions where you don’t have to pay stamp duty. 

There is no stamp duty charged on the transfer of property between-

  • Spouses and civil partners.
  • Former spouses (divorced).
  • One cohabitant to their other cohabitant. 

If you are buying a home under the local authority tenant purchase scheme you will only be charged €100 worth of stamp duty. 

4.Is stamp duty Ireland charged on new builds?

For new builds, stamp duty is still paid, however it is calculated differently. For new builds you will be charged stamp duty on the value of the home and VAT will not be included. 

Here’s an example-

The standard rate of VAT is 23%. Let’s say we have a property worth €450,000. 23% of €450,000 is €103,500. This means that before VAT the value of the home was €346,500. Hence our 1% stamp duty tax will be charged on the €346,500, not the €450,000.

This only applies to new builds, not 2nd hand properties. 

5.What is the higher stamp duty Ireland rate that has been introduced in 2021?

In July 2021, an act was introduced that charges 10% stamp duty on property owners who have bought 10 or more properties within one year after the 20th of May 2021. 

This act was introduced to stop the bulk buying of homes in Ireland and to discourage investment funds from buying up housing estates, so first time buyers are given a chance to purchase a home. 

This higher rate does NOT apply to apartments. It also does not apply to homes bought for social housing purposes. 

6.What are the costs involved with stamp duty Ireland?

Your solicitor will calculate how much stamp duty is due for you before the sale is closed. This stamp duty is paid to the Revenue Commission and a stamp is placed on the deeds of the property. 

Whilst having a solicitor to do all the hard paper work for you is a huge help, it does come at a price.

The price of a solicitor to guide you through this process will vary. Some solicitors will charge a flat fee, whilst some will ask for a % value of the property, such as 1 or 2%. 

You should be prepared to spend between €1000-€3000 in legal fees along with VAT. 

This is why it is important to research a good solicitor that will get the job done at a reasonable price before thinking about transferring properties. Check out more on solicitor fees here.

7. Do I have to pay stamp duty Ireland on a property I inherited or was gifted?

According to the Revenue Commission [1] , if you are given a property as a gift that is situated in Ireland and the property has been transferred to you then yes, you will still have to pay stamp duty

However you will NOT have to pay stamp duty on a property that you have inherited, such as a property left to you in a will.

In a Nutshell – Stamp duty Ireland

So in summary, stamp duty is a major factor to take into consideration when you are planning on buying a property.

It is important to remember that between buying the property, solicitor fees as well as stamp duty, buying property requires a lot of money. Hence you should thoroughly research how much a property will cost you and put a lot of thought in before you start enquiring.

From this article, you should hopefully have a better understanding of how stamp duty is calculated and what factors you should keep in mind before looking about buying a new property.  

What’s Next?

Thinking about switching mortgages as well as properties? Click here.

To find out more about the good way to save your money, click here.

Looking for ways to help ease the stress of savings? Click here.

If you have any more questions about stamp duty or buying a new property feel free to book an appointment with our financial advisors here at moneysherpa free of charge here.

Investments Ireland 2021 – Bonds Update

investments ireland 2021

If you are thinking about Investments Ireland 2021, you may be wondering how suitable bonds are as an asset class right now. Here’s the rundown on the latest trends in the bond market.

investments ireland 2021

Traditionally, bonds have always accounted for a significant portion of a well-constructed investment portfolio. This fixed-income asset class provides additional diversification for the more turbulent market conditions when stocks falter.

Although bonds still warrant a place in a well balanced portfolio, ultra-low interest rates and general investment market conditions require investors to review their bond allocations, and assess whether they should be reduced.

Read on to find out why.

Latest bond trends – Investments Ireland 2021

Inflation and the Yield curve – Investments Ireland 2021

Effect of bond yields on stock markets – Investments Ireland 2021

Jackson Hole – Late August FED Meeting – Investments Ireland 2021

Where to invest right now? – Investments Ireland 2021

Investment Outlook for bonds? – Investments Ireland 2021

Latest bond trends – Investments Ireland 2021

German 10-year government bonds are currently yielding -0.49%, which means they will lose 4.9% of their value in a 10-year time period, and that is before any inflation considerations. The current ultra-low interest rate environment creates a challenging dynamic for bond investors. 

Typically, bonds weaken in response to higher inflation, as inflation eats into the value of the regular fixed interest payments associated with bonds. 

On the other side of the Atlantic, 10yr US Treasury notes have rallied since the beginning of April and this has been the source of much confusion for investors, as the pace of US inflation (CPI) continues to worry. These elevated inflation levels have challenged the FED’s view that high inflation during the US recovery will be temporary. 

The consumer price index increased 0.5% in July, after climbing 0.9% in June. In the 12 months through July, the CPI advanced 5.4%, the fastest pace since August 2008. Although the CPI data for July decelerated, inflation still remains at significantly elevated levels.

US 10yr Treasury yields have continued to fall during this period, closing out July at 1.22%. Yields move inversely to the price of bonds.

Inflation and the Yield curve – Investments Ireland 2021

The June CPI inflation data initiated a counterintuitive trend within the US government bond market.

The rise of the COVID-19 delta variant and a surprise hawkish tilt from the FED in response to the inflation readings (prospect of “tapering”/reducing the bond buying program), surprisingly led to an increased demand for 10-year Treasury notes, even as the inflation readings were at levels last seen over a decade ago.

The surprise hawkish FED tilt also resulted in a spike in short-dated Treasury yields, resulting in a flatter US Treasury yield curve.

The shape of the yield curve portrays the state of the overall economy. A normal upward sloping yield curve implies stable economic conditions, as yields increase for bonds with higher maturity.

Investors want to get compensated for holding bonds with a longer duration in a normal economic landscape. The recent flattening of a yield curve suggests a more uncertain economic environment and easing inflation concerns, in the anticipation of tighter monetary policy. 

Investors have been betting that an adjustment to short-term rates will have the ability to quash inflation concerns in the longer term, leading to the variation in movement between the front and back end of the curve.

Reduced summer trading volume coupled with weaker supply in recent Treasury auctions have also supported the downward trend of 10yr US Treasury yields.

Effect of bond yields on stock markets – Investments Ireland 2021

The negative relationship between US 10yr yields and the Nasdaq 100 (Tech) is evident in the chart below [1]:

The recent advance in tech stocks (defensive COVID strategy) came at a time when the price of Treasury bills has risen. The yield on the 10-year Treasury has since fallen nearly a half a percent since the end of March, while the Nasdaq 100 has gained 17% over that period, outperforming the S&P 500 Index by more than 4%.

Jackson Hole – Late August FED Meeting – Investments Ireland 2021

As FED policy makers prepare for another virtual Jackson Hole conference at the end of August, the meeting seems to hold more significance for the global investor community than usual. Any indication that the FED is going to taper the bond buying program is likely to steepen government bond curves, as longer maturity bonds are likely to sell off. 

Longer-term interest rates have dominated equity markets over the past year. Investors that expect the 10-year yield to climb in in the latter part of 2021 and into 2022, should be reducing exposure to tech stocks – due to the risk of higher interest rates.

When the 10-year Treasury yield rose to 1.74% during the first quarter of 2021 (rise of 80 basis points), that period also coincided with a significant Growth to Value style rotation within equity markets. The MSCI World Value index rose by nearly 9% during that period, while the MSCI World Growth index barely moved.

This resulted in cheaper (undervalued) equity markets, such as Europe and the UK, outperforming the US. This trend has reversed over the past few months, as the 10-year US Treasury yield plunged to 1.17% by early August, as the fear over the Delta variant gripped global investment markets.

Delta concerns have supported renewed investment in the “stay at home” growth stocks, as they started to outperform again.

Where to invest right now? – Investments Ireland 2021

Investors should be focussing on sectors that are positioned to do well in an increasing yield curve environment, which is one that depicts economic reopening and recovery. The latest viral challenge should be viewed as yet another hurdle along the road to economic recovery, as opposed to a barrier, although the variant may cause a more uneven globally recovery.

Investment Outlook for bonds? – Investments Ireland 2021

According to a recent regulatory filing, Michael Burry, played by Chirstian Bale in the Big Short, has a large short position on long-term (20+ years) US Treasury bills. The options contracts will make money if the value of long-term Treasury bonds depreciate (yields go up). Burry, who was made famous by his very profitable bet against the US housing market, shares the same bearish outlook as many of Wall Street’s elite.

With the Federal Reserve inching ever closer to a “tapering” of its QE bond purchase program, all eyes are once again on the bond market.

Next steps

You can read our more investing in Ireland analysis here.

You can check out our other guides on Investing in Ireland here.

You can find out where to get individual investing in Ireland and financial advice in your area here.

Best Mortgage Broker Navan 2021

mortgage broker navan

Finding the best mortgage broker Navan for you is essential, as it can potentially save you thousands. 

mortgage broker navan

Here at moneysherpa, we strongly believe that a good mortgage broker can help you find the best mortgage for you and can save you from spending more than you need. 

Brokers act as financial guides, offering us valuable insight to help us make more informed decisions that will help us save money on our mortgages.

Only around 50% of Irish homeowners use mortgage brokers to assist them in the mortgage application process. 

The average cost of a mortgage in Navan varies by over €111,000 based on the broker you choose, so choosing the right broker is vital.

In this article, we are going to be outlining why you should consider using a mortgage broker, what the benefits are and how to tell a great mortgage broker from a good one. 

  1. Overview, mortgage broker Navan
  2. Service key features, mortgage broker Navan
  3. Alternatives, mortgage broker Navan
  4. In a nutshell, mortgage broker Navan

Here at moneysherpa, we have a qualified team of mortgage sherpas who are independent and are here to help you free of charge.

Our mortgage sherpas are here to help alleviate the stress that comes with mortgages and are here to advise you so you get the best deal possible.

1.Overview mortgage broker, Navan.

Having the right mortgage broker could mean saving you thousands. According to the property price register [1], the average house in Navan is going for €272,000 as of March 2021, meaning that a typical 90% mortgage will be upwards of €240,000. 

We found that the average cost of a mortgage in Navan over a term of 35 years can be anywhere between €371,800 with Avant Money upto €483,304 with Bank of Ireland, a difference of over €111,000

With this much money on the line, it’s clear that having a qualified broker would be a huge help. 

Here at moneysherpa, we believe our mortgage sherpas are the best option to help with mortgage applications and queries, as they are-

  • Free to use, they get paid by the lender on completion of the mortgage
  • Independent, they get paid the same by all lenders
  • Comprehensive, they work with all the main banks and four broker exclusive lenders
  • Offer best service, they have a dedicated QFA mobile number, direct video diary access, ongoing support 

Key service features, mortgage broker Navan

Free to use, mortgage broker Navan 

Many mortgage brokers out there will offer fees ranging from €100-€500 to cover the cost of processing mortgages with lenders, as this is a costly and time-consuming process. 

However, at moneysherpa we have invested in modern and advanced technology platforms which make the task of processing mortgages cheaper and easier. This means that we don’t charge our customers for our services, as our mortgage sherpas are paid out of the 1% commission from lenders after a mortgage has gone through. 

Independent, mortgage broker Navan

Many smaller mortgage brokers out there are tied to one single lender and therefore cannot offer mortgages from competitors, even if those competitors could save the customer money. 

An independent broker will offer you the best mortgage without any bias, meaning that they are committed to finding the best mortgage for you, not for them. 

money sherpa gets paid the same no matter what lender our customers go with. Our mortgage sherpas only get paid after a mortgage has gone through, ensuring that they have your best interest at heart and will do all they can to make your mortgage application successful. 

Comprehensive, mortgage broker Navan

There are four banks and three broker exclusive lenders that offer mortgages currently in Ireland. Most brokers offer three or four lenders on their panel.

Money sherpa works with all these lenders apart from Bank of Ireland. 

For an average mortgage in Navan, Bank of Ireland’s lowest mortgage rate of 3.7% APRC costs €57,000 more than Avant Money’s equivalent rate. We found that there are in fact over 20 deals from the other lenders that are better value.

By working with all the main competitive lenders in Ireland, moneysherpa ensures that you will receive the best offer available out there on the market. 

Lifetime best rate guarantee, mortgage broker Navan 

Whether you go with your bank or a broker, the rate of your mortgage will stay the same. This is because brokers are paid from the commission that lenders receive that they would otherwise spend on marketing. 

This means that if you go with a broker who doesn’t ask for any application fees, they are 100% free! I know it almost sounds too good to be true, but that’s just how the broker system works in Ireland. 

This is the case with our mortgage sherpas, as they offer their services free of charge. What makes them unique however is that they also offer something called a lifetime best rate guarantee. 

So what does a lifetime best rate guarantee mean for me? Well, essentially it means that after your mortgage application has gone through, our mortgage sherpas will continue to monitor the market to find the best offer available. 

If they find an offer better fitted for you than the one you have currently, they will get in touch to help you switch and save money in the future. 

Best service, mortgage broker Navan

As we can see, using a broker comes with many advantages and little drawbacks, as you are able to gain insight from a trained professional who is determined to find you the best mortgage available. 

Brokers can also help reduce the pain that is paperwork, however many brokers out there don’t use technology adequately to help make paperwork less of a drag. 

Our mortgage sherpas complete all your paperwork efficiently in only 2 video calls, as well as providing an online tool to upload your documents, tracking your case and ‘e-sign’ your application. The mortgage sherpas are all Qualified Financial Advisors (QFA), authorised by the Central Bank, with decades of experience behind them. 

This makes the mortgage application process much more time efficient and less of a burden. 

Alternatives, mortgage broker Navan

Go direct to the banks

Of course you are still able to go to your bank directly for your mortgage, as they already have access to all your bank transactions so you don’t have to worry about scavenging for them again.

However now with open banking even this advantage has recently disappeared, due to new legislation to help make banking more competitive. Now moneysherpa and some of the other larger brokers can access your bank transactions with your consent.

The huge downside of going with your bank is that you will be made to spend thousands more than is needed for a worse level of service. 

Go to your local mortgage broker Navan

If you wish to go to a broker but would rather sit down face to face with one rather than through a screen, going with a broker based in Navan is a viable option. 

However as local brokers tend to be smaller, they will most likely not offer a wide range of lenders. 

Unless they charge additional fees or are missing the leading lenders from their portfolio, they will usually have access to the same rates as the bigger brokers. 

Go to another online broker

There are many brokers available nationwide who could also be a viable option. Many will come with advantages such as being independent or offering many lenders. Some like moneysherpa also offer online tools to make the application process easier. 

However these advantages come at a price, as you may be charged up to €500 for their services. As well as that, many will not offer a lifetime best rate guarantee available like moneysherpa.

In a nutshell, mortgage broker Navan

So in conclusion, it is exceptionally clear that going through a mortgage broker comes with many advantages, as they act as a comprehensive guide to the best mortgage offers available.

Working with the right broker can make a huge difference, with the cost of the mortgage over 35 years varying by over €111,000 depending on the deal your broker recommends. 

moneysherpa’s own mortgage broker service, the mortgage sherpas, is the best way to get a mortgage. They are Free, Independent, Comprehensive, with a lifetime best rate guarantee and best online enabled service. 

Of course there are many other mortgage brokers out there that are up to standard to assist you and your financial needs, so what makes our mortgage sherpas stand out?

Well, unlike other brokers out there, our mortgage sherpas offer-

  • The lifetime best rate guarantee. You will always get the same deal as if you went direct and your mortgage deal is constantly monitored to switch you to the best possible rate for the lifetime of your mortgage.
  • The easy to use digitally enabled service. The sherpa fills in the paperwork for you on a video call and you simply digitally upload all your documents and signatures. Making the process a whole lot easier and faster.

You can book a free, no obligation video chat with the mortgage sherpa team here.

Start your application online with moneysherpa here

Read more about the mortgage sherpa team here.

Best Mortgage Broker Dundalk 2021

The best mortgage broker Dundalk is based in Dundalk, but also provides mortgages right across the country.

mortgage broker dundalk

Choosing the right mortgage could potentially save you thousands, therefore choosing the right mortgage broker is essential. In Dundalk, the average 90% loan to value mortgage is upwards of €240,000, and depending on the deal your broker recommends, the cost of a 35 year mortgage can vary by over €111,000.

The aim of this article is to help Dundalk homeowners find the best mortgage broker for them, whether those brokers be from the town or not.

In Ireland, only around half of homeowners seeking mortgages were helped by brokers. This is staggering compared to the U.K where almost 80% of mortgage applicants are assisted by brokers.

Mortgage brokers are useful and informative guides who help us to make more informed decisions when choosing the best mortgage for us. They are there to show us valuable insight to help us find the best mortgage available.

However no two mortgage brokers are the same. Some will charge fees, some will work only with certain lenders and some may not see your journey through to the end.

The right mortgage broker will not only help you manage your finances and potentially save you thousands, but will also help elevate some of that stress that comes with buying a home. They are a shoulder to lean on and are there to help you through this difficult process.

  1. Overview, mortgage broker Dundalk
  2. Service key features, mortgage broker Dundalk
  3. Alternatives, mortgage broker Dundalk
  4. In a nutshell, mortgage broker Dundalk

We recommend moneysherpa’s own mortgage broker team, the mortgage sherpas, as the best way to get a mortgage. They are based in Quay Business Park in Dundalk. They are free, independent, comprehensive, with a best rate lifetime guarantee and the best online enabled service.

Keep reading on to see what separates a great mortgage broker, from a good one.

Overview, mortgage broker Dundalk

As the average house in Dundalk is going for around €272,000 according to the property price register [1], working with the right mortgage broker is vital in ensuring you save as much money as possible. A typical 90% mortgage can be over €240,000, which once again emphasis’s the need for a good mortgage broker to help us save as much as we can.

In Dundalk, the average cost of a mortgage over a term of 35 years can be anywhere between €371,800 with Avant Money and up to €483,304 with Bank of Ireland, which is a massive difference of over €111,000

We at moneysherpa can help you save thousands on your mortgage, as our mortgage sherpas are-

  • Free to use, as they get paid by the lender once the mortgage has gone through
  • Independent, as they are paid the same commission by all lenders
  • Comprehensive, as they work with all the main banks and four broker exclusive lenders
  • Offer lifetime best rate guarantee, the rate is as good as if you went direct and they switch you to the best rate for life
  • Offer the best service, as they have a dedicated QFA mobile number, direct video diary access and ongoing support   

Even though not all brokers are as accomplished, independent or have a wide range of lenders, there are many other mortgage brokers out there who are just as qualified.

Key service features, mortgage broker Dundalk

Free to use, mortgage broker Dundalk

Although all mortgage brokers receive a commission from the lenders, many larger brokers also charge the client a direct fee, which can range from €100-€500. 

This fee is to help cover the cost of processing the mortgage with the lenders, which can take the broker takes time and money.

In contrast, the moneysherpa team have invested in advanced technology platforms to lower the cost of processing mortgages, so they don’t have to charge their customers a penny. They are paid fully out of the 1% commission received from the lender.

Independent, mortgage broker Dundalk

Many small brokers are tied to just one lender, and therefore cannot advise their customers on other providers, even if it would save the customer money. This can make a huge difference in how much your mortgage will cost, as not only do lenders have different rates, but also different policies.

ICS for example let public sector workers borrow more than those employed in other sectors, whilst some lenders are more flexible than others in extending credit to some applicants or don’t offer loans for self build etc..

By having an independent broker on your side, you will receive an unbiased and informed opinion on what lender is best for you.  

moneysherpa are paid the same no matter what lender you decide to go with, therefore ensuring that our mortgage sherpas make an objective decision. moneysherpa are only paid once your mortgage is approved, meaning we will do all we can to ensure your mortgage application is successful.

Comprehensive, mortgage broker Dundalk

In Ireland, there are currently four banks and three broker exclusive lenders that offer mortgages. Most brokers offer three or four lenders on their panel.

moneysherpa works with all lenders in Ireland apart from Bank of Ireland. For an average mortgage in Dundalk, Bank of Ireland’s lowest mortgage rate of 3.7% APRC costs €57,000 more than Avant Money’s equivalent rate. We at moneysherpa have found that there are in fact over 20 deals from the other lenders that are better value.

By working with all the competitive lenders, moneysherpa can make sure that you get the best deal and the best chance of approval. 

Lifetime best rate guarantee, mortgage broker Dundalk

Your mortgage rate will not change depending on if you go with a broker or directly to your bank. This is the case because brokers are paid through the fees that lenders would otherwise spend on marketing.

This means that going with a broker who doesn’t charge any application fees is completely free! It almost sounds too good to be true, but that’s just how the broker model works in Ireland. 

This is the case with the mortgage sherpa service, however unlike other banks and brokers, moneysherpa also offers a lifetime best rate guarantee

This means that as soon as the mortgage sherpa team has secured the best rate for your initial mortgage, they will start to monitor the market for changes that may save you even more money in the future.

If a better deal comes up, the team will get in touch to help you switch to that deal. By choosing moneysherpa as your broker, you effectively get “mortgage rate insurance”, which is a guarantee that as rates change in the market, you will know what they mean for you and will receive help to switch if that new deal saves you money.

Best service, mortgage broker Dundalk

Its clear to us now that going through a mortgage broker is a much better option than going directly to the bank.

Brokers can also help reduce the pain of the paperwork and can be a great middle man, but many brokers fail to use adequate technology to make things as pain free as possible.

The mortgage sherpa team complete all the paperwork for you in just two video calls, provide an online tool to upload your documents, track your case and ‘e-sign’ your application. The mortgage sherpas are all Qualified Financial Advisors (QFA), authorised by the Central Bank, with decades of experience behind them. 

This makes everything more dependable, quicker and easier than the methods used by other brokers and banks.   

Alternatives, mortgage broker Dundalk

Go direct to your bank

Of course you can always go to a bank directly for a mortgage, the biggest advantage of this option is they may already have access to your transaction history so you don’t have to stress out over finding your old bank statements. 

However with open banking even this advantage has recently disappeared with new legislation to help make banking more competitive. Now moneysherpa and some of the other larger brokers can access your bank transactions for you with your consent.

The big downside of going with your bank is that you are pretty much guaranteed to pay thousands more for a worse level of service compared to a broker.

Go to your local mortgage broker Dundalk

If you want the help of a broker, but want to sit down face to face rather than over a video call, then going through a mortgage broker based in Dundalk is a good option. 

However local brokers tend to be much smaller and typically don’t have as many lenders to choose from, nor do they have as many connections to lenders.

Unless they charge additional fees or are missing the leading lenders from their portfolio, they will usually have access to the same rates as the bigger brokers. 

However, they won’t have the same rate guarantees or advanced technological tools as the new wave of brokers like moneysherpa.

Go to another online broker

There are a number of nationwide brokers in the market who could also be a viable option. These usually have the advantage of being independent and have a good selection of lenders available. Some may also have online tools to help make the process even easier.

The big drawbacks are they aren’t usually free to use, charging fees between €100 and €500 as well as not offering the lifetime best rate guarantee available with moneysherpa.

In a nutshell, mortgage broker Dundalk

In conclusion, using a mortgage has little to no drawbacks, as they offer comprehensive advice and help make the stressful process of mortgage applications that little bit easier,

Working with the right broker can make a massive difference, with the cost of the mortgage over 35 years varying by over €111,000 depending on the deal your broker recommends. 

The mortgage sherpas here at moneysherpa are the best way to get a mortgage. They are free, independent, comprehensive, with a lifetime best rate guarantee as well as the best online enabled service. 

The main two things that make our mortgage sherpas really stand out from the crowd however are:

  • The lifetime best rate guarantee. You will always get the same deal as if you went direct and your mortgage deal is constantly monitored to switch you to the best possible rate for the lifetime of your mortgage.
  • The easy to use digitally enabled service. The sherpa fills in the paperwork for you on a video call and you simply digitally upload all your documents and signatures. Making the process a whole lot easier and faster.

You can book a free, no obligation video chat with the mortgage sherpa team here.

Start your application online with moneysherpa here

Read more about the mortgage sherpa team here.

APRC, the Ultimate Guide. What It Is and Why It Could Save You €20,000+.

ICS Mortgages Review
APRC

So what is Annual Percentage Rate of Change, (APRC) ? While it may seem confusing at first, APRC is a helpful tool that shows us the true cost of mortgages, so we can compare them to find the cheapest option. That’s why the CCPC [1] recommends using APRC to compare mortgages.

APRC is a really handy guide that tells us which mortgage is the best value for money if we see it through. APRC takes all costs involved in a mortgage and converts it into a percentage. This percentage shows us how much a mortgage costs after every factor is taken into consideration. 

This is really helpful when trying to find the best mortgage available, as all you have to do is look at the APRC percentage. The lower the percentage, the cheaper the mortgage is if it’s paid off completely. 

In this article, I will be discussing APRC in a bit more detail to help you better understand how it works, why it is useful to us, the difference between APR and APRC, how APRC is calculated and finally, how to get a loan with low APRC. 

  1. What is APRC?
  2. Why is APRC useful?
  3. What is the difference between APR and APRC?
  4. How is APRC calculated?
  5. How to get a loan with low APRC?
  6. Summary

1.What is APRC?

Annual Percentage Rate of Change (APRC) is a useful tool when comparing mortgages. It shows us the total cost of a mortgage when all factors are taken into consideration.

Factors such as fees and interest rates will greatly affect how much your mortgage will cost you overall. 

APRC will take all these factors into consideration to show us in percentage form how much a mortgage with a particular lender will cost us if we see the mortgage through to the end. 

It helps us see at a glance which mortgage provider offers the best mortgage to us after all costs have been taken into consideration. Remember; the lower the APRC rate, the cheaper the mortgage. 

2.Why is APRC useful?

Marketers will often try to persuade homeowners into buying a specific mortgage with attractive offers such as low starting interest rates or cashback. 

However, once you take the different factors into consideration, such as high variable rates introduced after the introductory period is over, you may soon discover that a once appealing mortgage is in reality quite expensive compared to other lenders. 

APRC helps homeowners compare mortgages from different lenders and prevents them from being swayed by attractive starting rates and other misleading factors. 

Let’s look at an example. Say a homeowner wants to mortgage a house worth €150000 and has a deposit down of €30000. APRC will help us see out of these 2 mortgages which is this best value for €120000. 

Mortgage AMortgage B
Starting Rate 0.99% for 24 months 1.39% for 24 months 
Standard Variable Rate 4.99% for 23 years 4.75% for 23 years 
Fees up front €1600

At a glance, many may think that Mortgage A is the best option, as it offers a much cheaper starting rate. 

However, as APRC will tell us, Mortgage B is in fact the better option, as it offers a lower standard variable rate than Mortgage A , as well as no fee up front.  

Mortgage AMortgage B
Overall cost €245,559€238,332
APRC 4.5%4.2%

Because Mortgage B’s APRC percentage is lower, it means that it is the cheaper option, saving you €7,227 over the lifetime of the mortgage.

3. What is the difference between APR and APRC ?

It’s very easy to get confused between APR and APRC, as they are similar in name and in meaning. 

Annual Percentage Rate (APR) works in a similar way to APRC, as it helps us compare the total cost of loans and credit. APR shows a percentage of how much interest the borrower pays on a loan, such as a mortgage, per year. 

Annual Percentage Rate of Change shows a percentage of the total cost of a loan such as a mortgage after all factors are considered.

In comparison to APR, APRC doesn’t just show us the cost of a loan after one year, instead it shows us how much the loan will cost us once its paid in full.

4.How is APRC calculated?

APRC takes a variety of different factors into consideration, such as broker fees and different interest rates, to calculate how much your mortgage will cost you for the full period of the loan. 

One vital piece of information that you must remember when looking at different APRC percentages on loans is that APRC takes all factors into consideration assuming that you will see this loan out until it has been PAID IN FULL. 

APRC shows how much you will pay over the full term of the mortgage, meaning APRC is not useful if you are considering moving house or switching lenders. 

So before you decide to look at different APRC percentages to help decide what the best mortgage for you is, consider certain factors, such as how long will I stay in this property? What life events are likely to happen in the near future that will affect my living situation?

If you think that you may be switching mortgages or moving property in the near future, APRC therefore might not be as important. This is because as you are planning to pay off the mortgage early and get a new one when you switch or move the introductory rate will apply for a larger proportion of the loan than shown in the APRC which assumes you will have the mortgage for the full term.

This is why although not making sense for everybody cashback and low introductory rates are a good option for those looking to switch regularly.

5. How do I get a loan with a low APRC?

Getting your loan with APRC is influenced by a variety of factors like:

The amount of available equity in your property– If you have a lot of available equity in your property and apply for a smaller loan, you are less of a risk to your lender, therefore earning a better interest rate bringing your APRC percentage down.

How much you want to borrow– The more you borrow, the lower rate you’ll be paying which again affects your APRC, as APRC assumes you will stay with this mortgage until it is paid in full.

The length of the mortgage- The longer your mortgage is the less you will pay per month, as the payments are stretched across a longer period of time.

Size of deposit– The more money you have in your deposit on a house, the lower the interest rate, as you are not seen as a risk to the lender.

6.Summary – APRC

So to summarise, when you think APRC, remember-

APRC is a tool to help you compare mortgages and find the best mortgage available.

The lower the percentage, the cheaper the mortgage is once it’s paid full term.

APRC shows percentages assuming you will stick with one particular mortgage to the end.

Always predict changes in your living situation in the near future before thinking about using APRC to find the best mortgage.

What’s next?

To find out more about fixed and variable mortgage rates, click here.

To find out more about comparing mortgage rates, click here. Or you can check out our handy switching mortgage guide here.

To calculate your mortgage rate savings and see all the mortgage providers APRC rates compared for your mortgage, click here.

What is a Green Mortgage Ireland and why should I consider applying for one?

Green Mortgage Ireland

Green Mortgage Ireland

Green Mortgage Ireland. As the world is becoming more environmentally conscious, so are mortgage lenders. Green mortgages are slowly becoming more and more popular as they are a great incentive to make our homes more energy efficient, which will help us save money as well as our planet.

Here at moneysherpa, we have looked at the different Green Mortgages Ireland, as well as the requirements necessary for a Green Mortgage in Ireland. We have also put together some useful ways you can make home more energy efficient to impress Green Mortgage providers.

In this article, I will be discussing why you should consider applying for a Green Mortgage, what you have to do in order to apply for one, what you can do to make your home more eligible for a Green Mortgage and overall, are Green Mortgages worth the time and effort required?

1. Why should I consider applying for a Green Mortgage Ireland ?

2. What do I need to do to apply for a Green Mortgage Ireland ?

3. How can I make my home more energy efficient? – Green Mortgage Ireland

4. Final verdict – Green Mortgage Ireland.

1. Why should I consider applying for a Green Mortgage Ireland?

green mortgage ireland

As I have mentioned previously, a Green Mortgage acts as an incentive to encourage people to make their homes more environmentally friendly. Lenders will offer certain rewards such as lower interest rates to homeowners whose homes are considered energy efficient. 

Many lenders such as Bank of Ireland and Ulster Bank all offer lower interest rates for homeowners applying for a Green Mortgage. 

Haven Mortgages have offered a 2.15% fixed rate on homes that they believe to be energy efficient, as well as offering €2000 to cover legal costs.

Haven have stated that homeowners with an existing mortgage of €300,000 on a €350,000 home could save up to €3,204 per year by availing of this 2.15% fixed rate, instead of the usual variable rate of 3.7%.  

2. What do I need to do to apply for a Green Mortgage Ireland?

When it comes to Green Mortgages, your bank will ask you for a document known as a Building Energy Rating (BER), which essentially is a calculation of how energy efficient your home is. BER certificates are valid for up to 10 years. 

The BER measures how energy efficient your home is on a scale of A to G, with A being the most energy efficient your home can be. So what factors will affect your BER rating? Well, there are a variety of aspects affecting your BER, such as adequate insulation, a working boiler, etc..

The vast majority of banks will require a BER rating of at least B3 or B2 in order to qualify and apply for a Green Mortgage. 

Lenders such as AIB, Ulster Bank, Bank of Ireland and Haven Mortgages all provide Green Mortgages in Ireland in 2021.

In order to avail of a Green Mortgage, you will have to receive your mortgage from one of these 4 lenders. However, if you are not with any of these specific lenders, you can contact a broker and switch to one of these mortgage providers to avail of a Green Mortgage. 

3. How can I make my home more energy efficient? Green Mortgage Ireland.

green mortgage ireland

There are many simple and straightforward things that we can do to make our homes more energy efficient, which will increase our BER rating as well as save us money in the long run.

We can take certain easy and affordable measures such as keeping the immersion at 65 degrees or using efficient electrical lighting to make our homes B3 worthy. However, if you are willing to invest in making your home even more energy efficient, you could replace your unproductive boiler with a water pump which renews energy, or look about taking further steps to properly insulate your home. 

All these measures, big or small, will help to maximise the energy efficiency of your home and overall will help make your application for a Green Mortgage more likely to succeed, and may even save you money by reducing your energy bills and making your home cheaper to heat!

Final Verdict: Should I apply for a Green Mortgage Ireland?

Green Mortgage Ireland

Overall, Green Mortgages are a great way to save money on a more energy efficient home. Making your home energy efficient won’t only allow you to benefit from a lower fixed interest rate, but will also help you save money in areas such as heating and electricity.

However, making your home more energy efficient does come at a price, so you should only avail of a Green Mortgage if you are willing to put the time, effort and money required into making your home more sustainable.

So, what’s next? Green Mortgage Ireland.

1. Check with your mortgage provider to see if they offer Green Mortgages and if so, what incentives do they offer for those who avail of this mortgage?

2. Research and find out if your home is eligible for a Green Mortgage and check your BER rating by contacting a BER assessor. 

3. Try and find different affordable ways to make your home more energy efficient and B3 worthy.

If you are interested in switching your mortgage to a green mortgage, you can find out more about mortgage switching here.

If you want to calculate how much you would save by switching to a green mortgage, check out our mortgage calculator here.

If you wish to switch mortgage providers to a lender offering Green Mortgages, feel free to contact one of our mortgage sherpas for a free consultation. 

Investing in Ireland 2021 – July Recap

Investing in Ireland 2021
Investing in Ireland 2021

Olympian Efforts – Investing in Ireland 2021

The struggle against COVID-19 is proving to be a global endeavour of Olympian proportions, but now the marathon efforts of the past 18 months have turned into something of a sprint, being a straight run-off between Vaccination and (delta) Variant in the desperate pursuit of economic reopening and societal normalisation.

Although latest investor sentiment surveys portray the virus as a fading “tail risk” for economies and markets, it is also the case that crowded positioning in the “Reopening Trade” for undervalued cyclical stocks has suffered meaningful profit-taking pressures over the past 10 weeks.

In consequence, the MSCI World Value index, which outperformed its Growth equivalent by as much as 12 pps from the start of this year to mid-May, has now surrendered this outperformance amidst re-rotation out of cyclical names (energy, banks, industrials) into more defensive plays (tech, healthcare).

For all that, equity markets continue to find ways to move higher, extending 2021’s clear pattern of rolling corrections under the bonnet (to SPACS, Meme stocks, Crypto and now Cyclicals), whilst overall indices grind higher to successive all-time peaks.

The MSCI World rose by a further 1.7% in July, its 6th straight monthly gain, a feat shared by the S&P500 and Europe’s STOXX600 which, in the latter case, is the longest winning streak since Draghi’s “whatever it takes” rally of 2012/13.

Clearly, equity markets are beneficiaries of sustained policy and liquidity support, factors which are also sustaining bond market performance in the face of accelerating inflation rates globally.

Benchmark 10yr yields declined by 25bps on both sides of the Atlantic last month, their biggest one-month drop since the height of the Pandemic panic in March, 2020.

This decline in yields prompted a recovery in Gold prices above $1800, amidst renewed (if tentative) ETF inflows after more than 6 months of sales.

Equities – Investing in Ireland 2021

A sharp contrast in equity market returns last month between the developed and emerging economies, that 1.7% gain in the MSCI World compared with a 7.1% decline in the MSCI EM.

As China’s abrupt regulatory clampdown on its internet and technology companies weighed very heavily on both the Shanghai Composite (-5.4%) and Hang Seng (-9.9%) indices, leaving the EM index now barely in positive territory on a ytd basis.

Lack of contagion towards the US and European markets is perhaps best explained by the insulation provided by a robust corporate earnings season now in full flow. However, the FTSE100 did snap a 5-mth winning streak with a marginal (-0.1%) decline.

Bonds Investing in Ireland 2021

The growing conundrum of declining bond yields in the midst of strengthening inflation rates globally continued to fixate last month, with 10yr benchmark Treasury yields falling by more than 25bps to a 1.22% close, low since mid-February.

Intriguingly, this decline in US yields was wholly attributable to the real yield component, whereas “breakeven” inflation was slightly higher on the month.

Sliding US bond yields were broadly matched in Europe, where 10yr benchmark Bund yields declined by 25bps to -0.46%, their biggest monthly drop since August, 2019.

Currencies Investing in Ireland 2021

A traditional mid-Summer lull in trading conditions was most apparent in foreign exchange markets last month, with the major currency pairs confined to generally sideways moves within their well-defined ranges.

The USD trade-weighted index slipped marginally in July, the previous rebalancing of predominantly short USD positioning having now substantially run its course.

Eur/USD found solid support close to ytd lows at 1.1750, ending the month with a topside probe towards the 1.1900 area, whilst Sterling responded to a more hopeful COVID-19 trajectory in a fully-reopened UK economy, the Eur/Stg cross retesting its ytd low circa 85c. 

Commodities Investing in Ireland 2021

Commodity markets enjoyed further broad-based gains last month, the CRB Index rising by 2.2% for its 4th straight gain (and 8 of the last 9), this index now scaling 6-year peaks.

Whilst oil prices have been leading the charge for much of 2021, last month proved a more volatile affair, with Brent crude completing a $76-67-76 round-trip amidst swirling uncertainty over the latest OPEC+ production accord.

Industrial metals rebounded from recent corrective pressures, as indeed did precious metals, with Gold prices clawing their way back to the key $1830 resistance area in response to the renewed slippage of both real yields and the USD.

Asset Market Outlook Investing in Ireland 2021

  • Equity markets still climbing a wall of worry (Delta variant, inflation, policy risks), testament to the potency of current macroeconomic, earnings and liquidity supports.
  • Stellar corporate earnings recovery mitigating equity overvaluation concerns, whilst renewed decline in bond yields reinforcing the relative valuation argument.
  • Significant investor positioning flush-out of “reflation trade” favourites (financials, energy, industrials) harbinger of renewed engagement as global growth jitters fade.
  • Conundrum of lower bond yields in the face of rising inflation risks perhaps best explained by the “financial repression” realities of central bank policymaking via zero interest rates and open-ended asset purchase programmes (QE).
  • Renewed decline in 10yr Treasury real yields to fresh record lows portending catch-up weakness for the US Dollar following last month’s disconnect; Eur/USD now targeting a 1.1950 vault for bullish continuation.
  • Gold ETF liquidations now seemingly having run their course, allowing prices to base-build above recent $1680 and $1760 lows; $1830 the next barrier to overcome ahead of a re-run to the $1900 area.

Asset Allocation Investing in Ireland 2021 Outlook

                                   Equities          Bonds       Credit       Forex/Euro

US                                           +1                  -2               -1                 -1

Euroland                               +2                   -2               -1                N/A

UK                                           +2                   -2               -1                  0

Asia                                         0                    -1               -1                 -1

Code +3/-3 very attractive/ very unattractive

Financial Market Performance Data Investing in Ireland 2021 Outlook [1]

Next steps

You can read our more investing in Ireland analysis here.

You can check out our other guides on Investing in Ireland here.

You can find out where to get individual investing in Ireland and financial advice in your area here.

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