Bad Credit Online Magazine - Daily News and Advice on Credit, Debt and Mortgage : British banks may be entering sub prime market in Ireland

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October 22, 2005

British banks may be entering sub prime market in Ireland

Irish real estate is booming and, so is mortgage industry. Irish banks have been doing well lately in conventional home loans and typically don't cater to the Irish folks with bad credit. So British banks, which already present in Ireland, may try to expand by grabbing somewhat neglected sub prime mortgage piece of the total pie. Actually few lenders that have been lending monies to customers with bad credit are owned by British banks.

Interesting to note the following:
- Loans for people with bad credit are called "adverse credit mortgage" loans.
- "According to estimates from the Independent Mortgage Advisers Federation, the adverse credit mortgage market in Ireland could reach €2 billion a year." It is over $3.5 billion.
- "Adverse credit mortgages are usually offered in Ireland at rates of up to 6 per cent, meaning that the lender generates double the margin of a conventional mortgage." The rates are very low compare to US sub prime mortgage rates, the margins are quite nice.

More on adverse credit mortgage lending in Ireland

 
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