The Republic has better terms for home loans

Update Brown bullies the banks. Good news for the 10% on standard variable rates and existing trackers. But all trackers are withdrawn for new borrowers. New higher rates linked not to base rate but to the LIBOR (London inter-bank lending rate) from Monday.

Now here’s quite a contrast. From Finfacts Ireland’s weekly press review.

The Irish Independent reports that homeowners will enjoy a reduction of up to €400 a month on their mortgage repayments by the middle of next year, economists predicted last night.
Yesterday, all the main banks said they would pass on the latest ECB rate cut to customers.

The Financial Times

Mortgage lenders tried to defend their decision to withhold the Bank of England’s 1.5 percentage point interest rate cut from borrowers on Thursday, in the teeth of a public and political backlash.

Can anybody explain why bank guarantees from the Irish state are delivering better terms for home loans quicker than UK bank semi-nationalisation ?

Former BBC journalist and manager in Belfast, Manchester and London, Editor Spolight; Political Editor BBC NI; Current Affairs Commissioning editor BBC Radio 4; Editor Political and Parliamentary Programmes, BBC Westminster; former London Editor Belfast Telegraph. Hon Senior Research Fellow, The Constitution Unit, Univ Coll. London

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