Latest news with #DavidMcWilliams
Al Jazeera
3 days ago
- Business
- Al Jazeera
Did the EU capitulate to Donald Trump's tariff threats?
Trade agreement announced in Scotland gets mixed reaction in Europe. The United States and European Union say they have struck a trade deal. It will impose 15 percent tariffs for the EU but not the US, and there are pledges for huge US energy and weapons contracts. EU supporters say it averts a trade war. Critics say it is a capitulation. So, who is the winner? Presenter: James Bays Guests: David McWilliams – economist Alan Tonelson – US economic policy analyst Mujtaba Rahman – managing director for Europe at Eurasia Group
Irish Times
23-07-2025
- Business
- Irish Times
First mortgage: The 10 things first-time buyers need to get right
Some first-time buyers are getting their mortgage wrong, and it's costing them. Stiff competition for homes means being laser focused on getting a loan offer, and fast. However, getting the wrong mortgage could leave you in the wrong house, in the wrong location and on the hook for more debt than necessary. Your mortgage is going to shape your finances for decades to come, so here are the top 10 things you need to get right. 1. Shop the market So, you have 'your' bank – your salary goes in and your bills come out. Sticking with the same bank for your mortgage, however, could be a costly mistake. 'All first-time buyers want at that moment is mortgage approval. They can think all banks offer the same deal. Not shopping around is the biggest mistake they can make, in my view,' says Margaret Barrett, managing director of Mortgage Navigators . READ MORE Can you name 11 banks? That's how many mortgage lenders there are in Ireland right now, all with different underwriting policies and rates. [ Why now is not the time to be complacent on mortgage arrears Opens in new window ] 'There are banks available only through brokers that are not available to customers on the high street and some of those banks have better deals than Bank of Ireland, AIB and PTSB,' says Barrett. Mortgage interest rates vary from 2.98 per cent to a whopping 6.15 per cent at the moment. Use a mortgage broker to shop the market for the best offer for you, and avoid paying needless extra interest. David McWilliams on how 'big incentives' to build could save Dublin city Listen | 36:51 2. Know your real budget A squeeze on housing is pushing prices out of reach, but some first-time buyers are shrinking their options further because their bank is underestimating their income. How much a first-time buyer can borrow is limited to four times income. If you have variable income, like bonus, commission, overtime and shares, you need to use a bank that recognises the value of it. Not all do. 'A lot of clients work for Google, Salesforce, and LinkedIn and they get stock – this is a massive part of their salary,' says Martina Hennessy of mortgage broker . 'If you have variable income, the income you are allowed to multiply by four is key to how much you can borrow, and that can vary greatly.' Some banks give more weight to variable income – this can add tens of thousands to your borrowing capacity, widening the choice of homes you can afford. Take the example of a tech worker earning €70,000, with €14,000 in annual bonuses and €25,000 in vested stock. Their borrowing limits range from €308,000 with a pillar bank, taking 50 per cent of bonus into account, and €405,000 with a more flexible lender, allowing 90 per cent of bonus and 75 per cent of the value of the stock, says Hennessy. That's a €97,000 difference. [ Number of mortgages in three-month arrears lowest since 2009 Opens in new window ] Approval to borrow more can enlarge your house search parameters – you could end up in a different house in a different area. 'You can end up with an extra bedroom that you can rent out, that can really turn the dial on your repayments,' says Hennessy. 3. Stay put, and stay consistent If variable income is a big part of your pay, moving jobs could cost you. 'For some workers, their variable income, like commission, can be the same as their basic income – it can be huge,' says Hennessy. But if you can't demonstrate you have earned the commission or variable income with the same employer for three years, the bank doesn't want to know. 'If someone earns commission and they move jobs, say from Salesforce to LinkedIn, for example, this variable income can't be taken into account.' [ Move now or wait: First-time buyer and fixed mortgage rates Opens in new window ] Get your mortgage first, then you can move jobs all you like. And if you earn bonus, overtime or commission – are these payments recurring? Lenders often want to see a six- to 12-month track record of payments if you are including them in your repayment-ability calculations. 4. Go short if you can Just because you can lower your monthly repayments by spreading them out over 35 years doesn't mean you should. Going shorter on the mortgage term, if you can afford it, can save you tens of thousands of euro. 'Don't set 35 years as your default position,' says Hennessy. 'You are probably already in a position where you can afford more,' she says. With rents averaging €2,350 a month in Dublin, according to Residential Tenancy Board figures, for many who were saving for a deposit too, the monthly mortgage repayment on their new home is likely to be a much lower amount. Yes, after years of scrimping to buy, it would be nice to have a bit extra every month, but the extra can get gobbled up on lifestyle spending. Put it towards your mortgage instead and you'll be better off in the long run, paying less interest on your borrowings. [ Homes in Kildare affordable housing scheme above price limit for State-backed mortgages Opens in new window ] The average first-time buyer mortgage approval level is just over €330,000. Taking a very average rate of 3.5 per cent with repayments over a 30-year term, the repayment would be €1,482 per month. 'If that applicant repaid over a shorter, 25-year term instead, their repayments would be €1,652 per month, so a monthly differential of €170,' says Hennessy. 'The difference in interest, however, over a 30-year term, if the interest remained the same, would be €194,460 versus €158,757 over 25 years. That's an interest saving of €35,703 by opting for the shorter term.' Ask yourself if you can afford to pay the extra €170 more a month now to save over the longer term and pay off your mortgage quicker. 'If you do end up trading-up down the line, you'll have much more equity in the home and you'll have paid much less interest too,' says Hennessy. If you find a house that needs work, don't be put off. You might be able to include the do-up cost in your mortgage 5. Public-sector workers If you're a public-sector worker, or you are buying a house with one, where you get your mortgage will have a serious impact on how quickly you can afford a home, says Barrett. 'ICS mortgages, for example, will go five points up the salary scale for a public-sector worker, whereas most of the traditional pillar banks will go just one or two points up,' she says. This increased flexibility comes with ICS's Flexi IO rate, where owner occupiers pay only the interest on the loan in the first two years, but must take out a five-year fix. In joint mortgage applications where the public servant is not the main earner, ICS will assess their income five points up their pay scale. [ 'I went from €17,000 in debt and jobless to paying off my mortgage early' Opens in new window ] Where both applicants are public-sector workers, the bigger earner will be assessed at three points up the salary scale, and the secondary earner at five points up. By contrast, MoCo and Nua will lend two points up the salary scale, while Avant will lend one point higher. PTSB and Bank of Ireland don't offer the feature. AIB will also go three points higher, says Michael Dowling of Irish Mortgage Brokers. Public servants should note that while the ICS's Flexi rate does enable them to borrow more, their mortgage will be more expensive in the longer run due to the interest-only start. However, they could switch to another lender after five years. 6. Shop till you drop After you go 'sale agreed', it can take months before the sale closes. So even after you go sale agreed, keep an eye out for a better rate, says Barrett. 'You could get approval in principle or a loan offer today with a bank who might have the best interest rate right now, but up to three weeks before drawdown, you can change your lender.' It can take more than 10 weeks between when a property is 'sale agreed' and contracts are signed, and another five weeks or more between the signing and the close of the sale, according to Ipav figures. That's almost 16 weeks. You'll understandably be nervous of tinkering that far into the sales process, but a new loan offer can be issued within seven to 10 working days, says Barrett. [ Irish average mortgages hit record €328,000 as buyers chase soaring prices Opens in new window ] 'If another bank comes with a cheaper rate or a better product, a good broker will get it for you.' 'Up to three weeks before drawdown, there is still enough time to switch,' says Barrett. 7. Futureproof The average age of a first-time buyer is 36 – this can be a busy and expensive life stage. 'The affordability of your mortgage can fluctuate in the future if your life circumstances change,' says Barrett. 'It might increase in affordability, but it might also decrease. There might be unpaid leave from work, one of the applicants might decide to stay at home for a few years, so it's about understanding your future affordability too.' Yes, going shorter on the mortgage term will save you interest, but one good reason to go long is your future life plans. If you do max out your mortgage term, you can always reduce it later, or switch to another lender. 8. Can I overpay? By how much can I overpay the mortgage? In the heel of the house hunt, it's not a question many first-time buyers think to ask. The facility to overpay varies by bank, and this can significantly affect the overall cost of your mortgage. [ Revolut to offer mortgages in Ireland in autumn Opens in new window ] Some mortgages allow over payment of 10 per cent of your monthly direct debit, for others it's 10 per cent of your mortgage principal, says Barrett. Other mortgage providers allow overpayment of 20 per cent of your mortgage principal. If you get a sales bonus every quarter, for example, the facility to knock chunks off your mortgage can make a significant difference to paying it off faster with less interest. 'That overpayment facility is really important. Sometimes one that allows overpayment of 10 per cent of your direct debit might have the cheapest interest rate, but the mortgage with the higher interest rate is actually the better product because the overall cost of the mortgage will be less with that overpayment,' says Barrett 9. Do-er upper money Ex-rental properties, probate sales – the majority of homes sold are second hand. Yet, apart from the vacant property refurbishment grant, first-time buyers get no government help to buy second hand. If you find a house that needs work, don't be put off. You might be able to include the do-up cost in your mortgage, says Hennessy. Understanding this can widen your property search. 'You can borrow to renovate a property when you buy it.' [ Irish mortgage rates continue to fall but remain higher than EU average Opens in new window ] Take a first-time buyer approved for a mortgage of €450,000, based on an expected purchase price of €500,000. They find a house for €450,000, but it needs €50,000 worth of work. As long as the finished value of the home is €500,000 (or more), and the loan-to-value stays at or under 90 per cent, your mortgage could finance both the purchase and the renovations. You'll need a detailed breakdown of renovation costs from a contractor, and an estimated post-renovation value from one of the bank's approved valuers. The bank will release the mortgage funds for the purchase, and then release the renovation funds in stages as the work progresses when you provide the right certificates, according to 10. Don't get complacent Once they get the keys, first-time buyers can make the mistake of never looking at their mortgage again. You might be punchdrunk from the house hunt and mortgage process, but getting complacent will cost you. Review your mortgage interest rate every two or three years, says Barrett. If you chose a three- or five-year fixed rate to start, you will roll off on to a variable rate after the fixed period expires. This will make your repayments more expensive, unless you act. This is a prime time to not only switch rates, but switch banks too. 'You could be saving tens of thousands by switching your mortgage,' says Barrett. 'If you term-ed it out to run to 35 years, that is a really prime opportunity for revising your term as well.'
Arab News
21-07-2025
- Business
- Arab News
What We Are Reading Today: The History of Money
Author: David McWilliams In this eye-opening global history, economist David McWilliams charts the relationship between humans and money — from clay tablets in Mesopotamia to cryptocurrency in Silicon Valley. McWilliams shows that money is central to every aspect of our civilization, and from the political to the artistic. According to this book, money defines the relationship between worker and employer, buyer and seller, merchant and producer. It also defines the bond between the governed and the governor, and the state and the citizen. In this book, McWilliams takes the readers across the world, from the birthplace of money in ancient Babylon to the beginning of trade along the Silk Road.
Irish Daily Mirror
14-06-2025
- Entertainment
- Irish Daily Mirror
Fest your eyes on this: Our guide to the biggest events this summer
Summer has arrived and no matter what you're into, there's something for everyone happening all over the country. Bloom arrived in Dublin's Phoenix Park two weeks ago to kick off the festival season, with Taste of Dublin, Beyond the Pale, the Clifden Summerfest and All Together Now all taking place this summer. As our evenings get longer and sunnier, here's a handy guide to some of the best events happening in Ireland this summer. Taste of Dublin – June 12–15th, Merrion Square, County Dublin Celebrating its 20th anniversary this year, Taste of Dublin is back in the familiar surroundings of Merrion Square for a celebration of Dublin's vibrant culinary scene, with a broad mix of top chefs, local restaurants, and artisan food producers. Ticket prices vary depending on the day and time – early entry tickets start at €18 on the 12th and 13th of June, before rising to €32.50 after 6pm. Weekend tickets start at €26, while children under 10 go free. Dalkey Book Festival – June 12-15th, Dalkey, Co. Dublin Dalkey's annual book festival encompasses the entire town, as the event operates through many different locations and businesses on the peninsula – and this year's star guests include David McWilliams, David O'Doherty and Andrea Catherwood as speakers. Attendees are also encouraged to explore the town in between events, with the Walkie Dalkey guide and the Dalkey Island Ferry the area's key attractions. Beyond the Pale Festival – June 13–15th, Glendalough Estate, County Wicklow Set in Wicklow's scenic Glendalough Estate, Beyond the Pale offers an eclectic lineup of acts this year, with Jon Hopkins, Róisín Murphy and TV on the Radio headlining each day. Tickets for the Tier 2 area are priced at €109, with child tickets starting at €39. Clifden Summer Fest – June 13–15th, Clifden, County Galway Billed as the 'Best Festival in the West', Clifden's annual Summer Fest is set in the picturesque surroundings of Connemara. Derek Ryan, Paddy Casey, Mundy and the Whistlin' Donkeys are set to headline across the three-day event. Tickets start at €27.59 and go up to €81.35. West Cork Chamber Music Festival – June 27–July 6th, Bantry, County Cork For more classically-minded festival goers, the West Cork Chamber Music festivals offers a tasteful, eclectic lineup, with classical music discussion and candlelit concerts sprinkled throughout. Ticket prices vary from event to event, but are typically within the €10 range. Night and Day Festival – June 27–29th, Lough Key Forest Park, Boyle, County Roscommon Though a newer festival, Night and Day offers a balance of music, art, and nature to be envied. Internationally renowned acts such as KT Tunstall and the Wailers are joined by local legends like Paul Brady and Something Happens. Families are also well-catered for, with plenty of activities for younger patrons. Kaleidoscope Festival – July 4–6, Blessington, County Wicklow Proclaiming itself as Ireland's favourite family festival, Kaleidoscope counts Ocean Colour Scene, Texas and the Coronas among its most prominent acts for this year. Weekend tickets cost €97.55 for adults and €72.55 for children – although single-day tickets present a cheaper option. Cairde Sligo – July 6-12th, County Sligo Sligo's arts festival brings the town to a standstill for six days in July, with a variety of theatre, performance art and written word features. Ticket prices vary based on event, but some are free, including the popular clothes swap. Galway Film Fleadh – July 8–13th, Galway City, Co. Wicklow Held in the city since 1989, the Galway Film Fleadh has become an important rite of passage for all budding Irish filmmakers. As well as being an opportunity for unknown Irish filmmakers to gain exposure, the Fleadh is famed for its pitching competition – where aspiring filmmakers submit their written ideas to a panel of judges and a live audience. All Together Now Festival – July 31–August 3rd, Curraghmore Estate, Co. Waterford With a wealth of music, art, food, wellness, and comedy, All Together Now Festival offers a diverse lineup for its sixth edition, mixing Irish stalwarts Fontaines D.C and CMAT with established acts such as Nelly Furtado and Groove Armada. Set in the storied Curraghmore Estate, it's a festival that celebrates multiple forms of creativity. Dublin Horse Show – August 6–10th, RDS, Dublin One of Ireland's premier equestrian events, the Dublin Horse Show showcases the best in show jumping and renowned Irish horse breeding. As is the case with many showjumping events, the social aspect is as important as the action itself, with prizes for the best dressed attendees to close out the event. Puck Fair – August 10–12th, Killorglin, Co. Kerry Dating back to at least 1603, Puck Fair is one of Ireland's oldest festivals that includes the crowning of one lucky local goat as King Puck. Set to the music of street performers and bookended by firework shows, it's a unique festival, and one well worth a visit. Body & Soul – August 16-18th, County Meath After a sabbatical in 2024, Body and Soul returns this summer – but not as we know it. The festival's website has been updated and rebranded as with organisers promising a 'ceremonial farewell' to the event. Attendees can register their interest by the 11th of June on the festival's website – tickets are set to start at €250. Ukulele Hooley – August 23-24th, People's Park, Dún Laoghaire, County Dublin Europe's longest-running ukulele festival, Dún Laoghaire's Hooley offers a unique four-stringed take on a typical park festival. A wide range of performers will take to the stage in the People's Park over the weekend, including Victoria Vox and the Dublin Ukulele Collective. Electric Picnic – August 29–31st, Stradbally, Co. Laois The spiritual successor to the likes of Féile and Oxegen, Electric Picnic has sat at the top of the Irish festival heap for the past decade. Headliners this year include Hozier, Chappell Roan and Sam Fender, though the festival – held by Stradbally Hall since 2004 - has also leaned into comedy, art and food more in recent years – making for a more all-encompassing experience.
Daily Mail
11-06-2025
- Business
- Daily Mail
Finance expert reveals what your partner's underwear choice says about the state of the economy
A finance expert has revealed that the state of the economy can be gleaned by assessing men's underwear. The unusual metric can be a key indicator of the economy's health, according to Abby Hall, associate professor of economics at the University of Tampa. 'Your boyfriend or your husband may not just be wearing holes in his boxers for fun,' Hall explained to Scripps News. 'It might actually be an indicator of overall economic health.' This collection of data is called the Men's Underwear Index. Hall explained that the index suggests that the sales of men's underwear often decline during times of financial uncertainty. This is due to men hoping to stretch their money further - and rewear old underwear for a bit longer. But the Men's Underwear Index isn't the only unique measure finance experts use to assess the state of the economy. Another measure used is the Baked Beans Index which reflects how cheaper foods - like canned beans - are bought during tough economic moments. 'In the case of a recession, say somebody's lost their job or their income is declining, people might wind up buying more things like beans, which are relatively cheaper,' Hall said. A third measure known as the Lipstick Index follows luxury buying. 'The reasoning behind this, economists hypothesize, is that people are going to be purchasing relatively smaller luxuries during economic downturns,' Hall detailed. Economist David McWilliams agreed that these measures provide a unique perspective on human behavior and the economy - even though they are somewhat unusual indicators. 'All we're doing is we're studying this bizarre creature called a human being,' McWilliams said. 'That's what economics is all about.' He added: 'The more seriously we take it, the less likely we'll understand the nuances of what's going on because people are beautifully irrational.' The unusual metric can be a key indicator of the economy's health, according to Abby Hall, associate professor of economics at the University of Tampa (stock image) Other distressing data also points to America heading towards a recession. Now 25 percent of American adults are using 'buy now, pay later' services for grocery shopping, according to a disturbing new poll that suggests a recession is looming. The figure is up sharply from the 14 percent of adults aged 18 to 79 asked the same question in 2024 and the 21 percent who admitted using credit for groceries in 2023. A survey of 2,000 adults by loan company Lending Tree also discovered that 41 percent of people who used buy now, pay later for groceries had made a payment deadline - seven percent more than the year before. The data, first reported by CNBC, in April 2025, points to impending economic doom as millions of ordinary Americans buckle under the weight of soaring grocery prices, with inflation still untamed. Major supermarkets including Kroger, Shaw's, Ralphs, and Whole Foods let customers pay using the most popular buy now, pay later service - Klarna.
