In this video, mortgage broker John Coleman serves up his Mortgage & Property Market Recap for July 2021.
✅ First off, please excuse the rudimentary recording because my laptop malfunctioned so I’m just filming from his trusty phone. It’s never fun when our tech fails us at work!
✅ Speaking of work, there will be one less bank operating in the mortgage market in Ireland fairly soon because on Friday, Ulster Bank quietly released some bad news.
(By the way, I think banks, politicians, etc. always purposely release bad news late on Fridays before bank holidays!)
✅ Ulster Bank announced that as of the 29th of October, they will no longer accept new mortgage applications. It’s quite disappointing, honestly, and I think may have a big impact on our market – at least in the short term.
✅ Going forward, current applications to Ulster Bank and offers will still stand, but after October 29th, they may or may not be honoured based on whoever takes over Ulster Bank and their policies.
✅ But there is some good news in Ireland’s property market, as things are noticeably calmer among buyers and sellers. It seems we’ve gotten a respite from the mayhem we experienced all year, probably because people can get away a little more now, take a holiday, or just enjoy the warmer weather.
✅ Even more rosier news points to healthy property price increases throughout Ireland going forward. In a recent survey of industry professionals, the overwhelming opinion was that prices would keep increasing over the next 12 months, not fall.
✅ It’s interesting to note that predictions for the highest price increases were for outside of Dublin. That, too, makes sense, as people leave Dublin in search of better value (and lower prices), and can also work from home more than ever.
✅ In my humble opinion, Dublin may see around a 4% price increase over the next 12 months, which is steady and signals a more balanced market.
✅ Closing out our monthly recap with a report on bank service, we see that new applications have fallen a bit. Combined with the fact that banks have added extra staff and improved their systems, we’re seeing mortgage approvals in around four weeks. That’s down from the 5-week approval period we’ve seen to date, but a far cry from the 1-week approvals that were standard pre-pandemic!
✅ Until next month, please get in touch if you have questions or need help, and I hope to have a nice, new, fully functioning laptop for our next update!