MJ O'Connor Solicitors

The Brief

20.03.2007

Changes in the residential mortgage market

Over the last 10-15 years the Residential Mortgage Environment has changed out of all recognition. From being a locally based bank branch led and single broker activity residential mortgages in Ireland are now becoming increasingly centralised and in the fore front of European lending and technology.

Most mortgage brokers have now signed up to mortgage broking networks which enable these networks to provide a huge spread of lending and insurance options.

Overall mortgages drawn down in the Republic have increased year on year. Small to medium size brokers are struggling to offer their clients comprehensive independent advice as lenders continue to apply minimum volume targets.

The whole financial services industry in Ireland has changed. Increased compliance regulation has been introduced which protects and increases consumer confidence but adds significantly to the administration over heads of small to medium operators. In terms of market trends the portion of regular of home purchases has dropped to below 50% of all mortgage business as the re-mortgage sector continues to grow rapidly. Overall the market for re-mortgages and top-ups has grown by over 50% in the last few years.

A greater percentage of all consumers are choosing to wrap up all their debts under a mortgage availing of interest rates of between 3.5% and 4.5% on offers often selecting dual repayment terms.

“Consumers expect and should receive total choice and genuine transparent independent advice. There has been a significant shift towards full-service independent mortgage brokers. Consumers appear to be heeding commentator’s advice to seek independent advice before making a major financial commitment - This is equally applicable to mortgage services as it is for legal and other services.”

Trevor Grant MD – Property Division IFG Ireland

Once a mortgage offer has issued to a solicitor on property it is of course the solicitor’s role in acting for the lender to perfect the security against the property to be charged. However it is also the solicitor’s role on behalf of the client to go through the mortgage or loan offer to ensure that the product the client has received suits the client and to explain the terms and conditions of the loan. The solicitor can also give advice on financial protection products and indeed M J O'Connor Solicitors has qualified financial services staff.

Mortgages and protection products are a complex area – talk to our experienced and qualified legal team for the best advice.

For more information contact at our Wexford Office Wendy Smith wsmith@mjoc.ie and at our Waterford Office Triona Whelan twhelan@mjoc.ie

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