Where is the mortgage market heading?
Financial Planning

Where is the mortgage market heading?

Nick Charalambous
Nick Charalambous17th May 2021 • 6 min read

As humans we love routine and are often opposed to change. When it comes to switching your mortgage I would always recommend to clients to review their mortgage and always shop around for a better rate. You could make significant savings on your mortgage if you switch to a lower interest rate. If you have a €300k mortgage at 3% you will be paying the bank €155k interest on top of the €300k loan. If you switch to a reduced rate you will save yourself a lot more and could use that extra money to enhance your financial situation by putting it into your pension and letting it grow tax free or into a child’s savings plan so you can fund an education for your children. I would always recommend going on a fixed rate as variable rates tend to be much higher. The lower the term the better as you will owe a lot less interest.
Where is the mortgage market heading seems to be the question on everyone’s mind. The truth is that nobody can be certain exactly where it’s going and experts have all chimed in with their contrasting opinions which further indicates that nobody is entirely sure. However, I certainly wouldn’t recommend to those who are looking to purchase a property to put their plans on hold for a couple of years in hope that a housing prices go down.

I have seen recently some well renowned economists encouraging those who are looking to buy a property to go abroad for a few years and hope that the housing crisis is cleared up by the time they return. I would strongly advise against this as it’s a gamble. The demand for houses in Ireland at the moment heavily outweighs supply and due to the closure of building sites caused by Covid-19 I can’t see supply meeting demand for a number of years. The knock on effect of building sites being closed is that developers will have faced costly interest bills as their sites were closed and these costs will be passed onto the buyer in some shape or form in my opinion.

When we hear the word ‘’recession’’ we instantly compare it to the crash in 2008 where housing prices fell by 6.9%, and a further 18.1% in 2009, and continued to drop until 2012. It wasn’t until 2014 that housing prices started to increase again.  People need to understand that the 2018 crash is completely different to now. Demand for houses was low in 2008 as banks were not willing to lend hence the drop in housing prices.

The factors that affect demand on prices all suggest that housing prices will continue to rise. Ireland at the moment has record low interest rates and banks are continuing to lend. Mortgage drawdowns and approvals have been strong in 2021 and with the introduction of Avant bank offering 2.1% fixed rate, one can hope that this might encourage more competition to enter the market and a further reduction in interest rates from competitors such as Bank of Ireland, AIB, and EBS. Ireland’s GDP remained positive in 2020 as we were the only EU economy to grow during the pandemic and experts predict that our GDP to grow by 3.4% this year and 3.5% in 2022. Although unemployment rate hit an all-time high in 2020, households still managed to save more money than ever before. Household savings increased by €1b in the fourth quarter of 2020 according to the Central Bank .As of Monday, May 10th, the economy is starting to open back up and hopefully the majority of those unemployed will retain their jobs. These factors and a steady growth in GDP leads me to believe that house prices will continue to steadily rise over the next few years.

There has been a lot of frustration throughout the country that foreign funds are buying up housing estates and properties tax free in order to rent them. These funds are out bidding anyone looking to buy a property to live in. Unfortunately this has been happening since about 2013 and the Government are showing no signs of putting a stop to it. The mortgage market is a cruel and unfair place and it’s not looking likely that it will improve anytime soon. We are a long way off our European counterparts still as Irish consumers are still paying highest mortgage rates in Europe. However, for those who want to live in Ireland this is unfortunately the price we must pay. For anyone who is planning on applying for a mortgage I would advise them to act now as opposed to waiting a few years as I can’t see things changing for quite some time.

Nick Charalambous

Nick Charalambous

17th May 2021

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Planning for Separation or Divorce: Key Financial Considerations
Financial Planning

Planning for Separation or Divorce: Key Financial Considerations

Planning for Separation or Divorce: Key Financial Considerations 

As a financial adviser, and someone who has experienced separation and divorce personally, I understand that it can be one of the most difficult periods in a person’s life. 

Alongside the emotional and family considerations, separation or divorce also involves important financial decisions. From property and pensions to maintenance and tax, there is a lot to consider when moving from one household to two. 

Getting organised financially from the outset can help reduce some of the stress and uncertainty that comes with such a significant life change. 

Start by understanding your financial position 

The first step is to establish a clear picture of the finances of both parties. 

This includes: 

  • Income and regular expenditure 
  • Property and mortgages 
  • Savings and investments 
  • Pensions 
  • Loans and other debts 

This information is generally captured in an Affidavit of Means, which provides an overview of your financial circumstances. 

Having the full picture from the beginning can make discussions with your solicitor, financial adviser and, where appropriate, a mediator much more productive. 

How are assets divided? 

There is no simple formula for dividing assets following separation or divorce. Every family’s circumstances are different, and a number of factors may need to be considered, including: 

 
  • The length of the marriage 
  • Each person’s financial position 
  • Assets held before the marriage 
  • Each person’s income and earning capacity 
  • Existing debts and financial commitments 
  • The needs of any dependent children 

 What happens to the family home? 

The family home is often one of the biggest financial and emotional considerations. 

Depending on the circumstances, one person may remain in the property, one party may buy out the other’s interest, or the property may ultimately be sold. 

It is important not to look at the house in isolation. Someone may retain the family home but have limited savings, pension provision or disposable income. 

Looking at the overall financial position helps to understand what a proposed settlement could mean for both parties over the longer term. 

Don’t overlook pensions 

Pensions can be one of the most significant assets involved in a separation, particularly after a long marriage. However, they can easily be overlooked because they are less tangible than property or cash. 

A Pension Adjustment Order may be used to allocate pension benefits between spouses. This is an area where professional legal and financial advice is particularly important. 

What about maintenance and children? 

Where children are involved, their financial needs should remain central to discussions. 

There is no standard amount of child maintenance that applies to every family. The amount will depend on the individual circumstances, including the parents’ financial position, income and the needs of the children. 

It is also important to consider costs beyond monthly maintenance, such as: 

  • Childcare 
  • Education and school costs 
  • Medical expenses 
  • Extracurricular activities 

Spousal maintenance may also arise depending on the circumstances of the marriage and the financial position of each party. 

Don’t overlook tax 

Separation can change an individual’s tax position, including the tax credits available to them. 

For example, depending on the circumstances, a parent may qualify for the Single Person Child Carer Credit, which is worth €1,900 in 2026. 

There can also be different tax treatment for child and spousal maintenance. Certain transfers of assets between spouses or former spouses following separation or divorce may qualify for tax exemptions. 

It is therefore important to seek appropriate legal and tax advice before transferring property, investments or other significant assets. 

Reducing conflict and planning for the future 

Getting the right advice early can make a significant difference. 

A solicitor can advise on the legal aspects, while a financial adviser can help both parties understand the financial implications of different options. Mediation can also be helpful where both parties are willing to work towards an agreement. 

One of the best places to start is by getting organised. Gather your: 

  • Bank statements 
  • Mortgage details 
  • Pension statements 
  • Investment valuations 
  • Insurance policies 
  • Details of debts 
  • Household expenditure 

Finally, don’t just focus on getting through the separation. Moving from one household to two can significantly change the cost of living for both parties. 

Reviewing your budget, savings, pensions, insurance and longer-term financial goals can help you plan for what comes next. 

Knowledge gives you options. Understanding your financial position early can help you make informed decisions and plan for a more secure financial future beyond the separation. 

READ MORE 1st Oct 2026
8 Simple Expert Tips to Make 2025 Your Best Year Yet
Financial Planning

8 Simple Expert Tips to Make 2025 Your Best Year Yet

The start of a new year is the perfect opportunity to take control of your finances and build better money habits, but it can be hard to know where to start.

Financial success isn’t about being perfect, it’s about progress. Small, consistent efforts can create a strong foundation for long-term stability. Whether your goals are to save for a home, reduce debt, or feel more in control of your money, 2025 is your chance to start fresh. By reviewing your finances, setting realistic goals, and using tools like tax credits and savings plans, you’ll be well on your way to making 2025 your most financially secure year yet.

1. Review Your Finances Regularly

Think of your financial plan as a guide to staying in control of your money. Start by tracking all your income and expenses for one month, groceries, transport, bills, and even forgotten subscriptions. Once you know where your money is going, you’ll see opportunities to cut back, like eating out less or cancelling unused services.

To make this process easier, use Alpha Wealth’s handy Budget Calculator to get a clear picture of your financial situation.

2. Reduce Debt Strategically

Overspending during Christmas is common, especially on credit cards with high-interest rates. Prioritise paying off this debt as quickly as possible before you start saving. Reducing debt gives you more financial freedom and lowers the stress of repayment in 2025.

Pro Tip: Start by tackling the highest-interest debts first, these are costing you the most.

3. Segregate Your Savings

Divide your savings into three pots to keep your financial goals clear:

  • Short-term (less than 3 years): For immediate goals like buying a car or holiday expenses.
  • Medium-term (3-10 years): For goals like education or major life milestones.
  • Long-term (retirement): Invest in tax-efficient options like pensions to maximise growth.

 

By separating your funds, you can use the right financial tools for each timeline, ensuring your money works harder for you.

4. Maximise Your Savings Returns

Don’t let your money sit in low-interest accounts. For short-term savings, consider online banks like Raisin or Bunq, which often offer rates above 2%. Lock in fixed-term deposit rates now before they drop further in 2025.

Also, take a moment to review your mortgage rate. You might be able to switch to a lower rate and save significantly on your monthly repayments.

5. Boost Pension Contributions

It’s never too early or too late to focus on your pension. Small contributions now can grow significantly over time thanks to compound interest.

Take advantage of the tax relief on contributions—up to 40%. If your employer offers a matching scheme, join it to benefit from essentially free money. Boosting your pension now can make a big difference in your retirement years.

6. Practice the Rule of 72

Impulse purchases can derail your budget. Use the “Rule of 72”: wait 72 hours before making any non-essential purchase. This cooling-off period is particularly useful during January sales, helping you avoid unnecessary expenses while still enjoying genuine bargains.

7. Claim Your Tax Credits

The start of the year is the perfect time to review your tax credits and allowances. Many people are eligible to reclaim up to four years’ worth of missed credits, such as:

  • Remote Working Relief
  • Rent Tax Credit (€1,500 per individual)

Log in to Revenue’s myAccount or Revenue Online Service (ROS) to update your details and ensure you’re not leaving money on the table.

8. Plan Ahead for Big Expenses

Instead of scrambling for cash when big expenses arise, start saving early. Open a dedicated savings account in January for your 2025 goals, whether it’s a holiday, Christmas, or a major purchase.

For example, saving €167 per month will leave you with €2,000 by summer.

Let Us Help You

Ready to take the first step? Talk to us to learn more about how we can help you achieve your financial goals for 2025 and beyond!

 

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What Budget 2025 means for you
Financial Planning

What Budget 2025 means for you

As the dust settles on Budget 2025, many are wondering how the announced measures will impact their daily lives. With a headline figure of €6.9 billion in new spending, the coalition government is taking steps to address a range of societal needs. Here’s a breakdown of the key takeaways from the budget and how they might affect you.

1. Social Welfare Increases

Those receiving social protection will benefit from a €12 weekly increase in payments. Additionally, double payments in both October and December will provide extra help just when it’s needed most. Families with newborns can look forward to a special €420 ‘baby boost’ payment, while maternity, paternity, and parental benefits will rise by €15 a week. These changes offer real financial support for households facing the rising cost of living.

2. Tax Cuts and Reliefs

Taxpayers will feel some relief with the changes introduced in Budget 2025. The entry point for the higher 40% tax rate is moving up to €44,000, so more of your income will be taxed at the lower 20% rate. This will leave middle-income earners with an extra €100 per month. Combined with a 1% cut in the USC, these changes are designed to ease financial pressures and boost your take-home pay.

3. Housing and Renters

First-time buyers will be pleased to know that the Help-to-Buy scheme has been extended until 2029. This allows you to continue receiving up to €30,000 to help with buying your first home. For current homeowners, mortgage interest relief has been extended for another year, a lifeline for those feeling the pressure from rising interest rates. If you’re renting, there’s some welcome news. The renter’s tax credit will increase to €1,000 next year, offering significant relief for tenants battling high rents. Even better, you can backdate this for 2024, so if you’re a jointly-assessed couple, you could claim up to €2,000. That’s a big boost for your bank balance.

4. Students

Good news for third-level students and their families: college fees are being reduced by €1,000, bringing the annual cost down to €2,000. This will provide much-needed financial relief for those navigating the costs of higher education. Postgraduate students will also benefit, with the fee contribution grant increasing from €4,000 to €5,000. This change is a positive step toward making education more accessible and affordable.

5. Health and Wellbeing

Healthcare spending is a significant component of Budget 2025, with additional funds allocated to the Health Service Executive (HSE) to tackle waiting lists and expand services. There will also be further investment in mental health services, an area that has seen growing demand post-pandemic.

6. Vapers and Smokers

If you smoke or vape, you’ll see price hikes on these products. Cigarettes will increase by €1 per pack, bringing the most popular brand to €18.05. Vapers will also feel the pinch, with the price of a typical vape rising to €9.23 next year. These changes aim to promote health, but they will hit younger consumers’ pockets the hardest.

Conclusion

Budget 2025 introduces a range of financial supports designed to relieve the pressure on households as they navigate the cost of living challenges. While Budget 2025 brings positive changes that will help ease financial pressures, it’s important to take control of your finances and make the most of these opportunities. Consider speaking with an impartial financial advisor to get your money working harder.

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