Investec’s arrival will provide a shot in the arm for mortgage market

Fine Gael TD for Limerick City, Kieran O’Donnell, has welcomed the news that the international bank, Investec, is to begin lending to Irish homebuyers.
“The arrival of Investec will provide a shot in the arm for the Irish mortgage market. We are now seeing new competition entering the Irish mortgage market for the first time since 2008. This is a signal of confidence in the Irish economy.

“In practical terms this should make it easier for prospective home buyers to get mortgage approval; it will put pressure on the other financial institutions to lower their variable lending rates for prospective and existing mortgage holders.

“Investec is coming into a market which is far more rigorously regulated as a result of legislation introduced by this Government. Investec has clearly done its sums and identified that there is a viable market for them in Ireland. I hope that Investec’s arrival will lead to a sensible and sustainable increase in the provision of mortgages in Ireland.

“As we all know, banks in this country have gone from one extreme to another when it comes to lending to potential homeowners. It has become unduly difficult for prospective buyers to get mortgages and this is causing massive hardship for tens of thousands of people across the country. These are people with permanent jobs who want to buy homes for their families.

“The increased competition in the mortgage market is good news for these people and will, I believe, make the banking industry perform its role, which is to provide sustainable loans to people who want to put down roots.”