In Short

A round-up of today's other stories in brief

Mortgages of over €1m triple at IFG

Over 500 applications will be made for mortgages of more than €1 million this year, according to brokers IFG Mortgages.

The number of people taking out six-figure mortgages at the company more than trebled in the second quarter of 2006, compared with the second quarter of 2005.

Shane Connole, sales director with IFG Mortgages, said most individuals and couples borrowing more than €1 million already had a significant level of equity from other properties.

"Typically, they would be trading up to a €1.5 million property carrying up to half of the value in equity," Mr Connole said.

Interest-only mortgages are popular with this group, he added.

Piba welcomes regulator's advice

The Professional Insurance Brokers Association (Piba) has welcomed the financial regulator's advice to consumers not to panic about recent blips in the equity markets.

Earlier this week, the regulator's consumer director, Mary O'Dea, reminded holders of equity Special Savings Incentive Accounts (SSIAs) that there was always some risk attached to equity investments and that they should remember that they had also made gains over the term of their SSIAs.

Piba chief executive Diarmuid Kelly said switching to deposit-based funds would not be in the long-term interest of the consumer. "Equities have always outperformed deposits when a view of five years or longer is taken," he said.

Higher earners facing more debt

High-income people are increasingly likely to have experienced serious money problems in the past and seek mortgages from specialist lenders who lend to credit-impaired people, according to GE Money.

The lender said the proportion of applicants for specialist mortgages who are higher earners increased from 2 per cent in 2003 to 5 per cent in 2004 and again to 9 per cent in 2005. So far this year, the proportion is 15 per cent.

The lender defines higher earners as those who are earning in excess of €65,000, or more than twice the national average wage.

Mortgage brokers expected to unite

Increased regulation and higher lending volume thresholds from lenders will push independent brokers into joining forces over the next three to five years, according to the chief executive of a new mortgage network.

Ronan Morris of Blue Sky Mortgages, a network of 13 mortgage brokers launched by the Minister for Finance Brian Cowen this week, said its business model allowed brokers to combine lending volumes and compete with top mortgage brands.

Blue Sky Mortgages intends to expand its network to 25 brokers over the next 12-18 months.

Over half of all mortgages taken out last year were done through mortgage brokers.

Liberty launches new umbrella fund

Liberty Asset Management has launched a new version of its Flagship Fund, an umbrella fund that gives investors access to best-in-class funds from Friends First, F&C Asset Management, Canada Life and JPMorgan.

The fund is spread across equities, bonds, property and commodities, includes a 100 per cent capital guarantee when the fund matures after six-and-a-half years and also gives investors 100 per cent of the growth.

Investors can access their funds after three years and they receive any dividends and rental income generated by the underlying funds.

The fund requires a minimum investment of €25,000 and has an annual management fee of 1.95 per cent.