CBI - mortgage rules won't be changed.


#1

rte.ie/news/2016/0925/819101-central-bank/

Cue political outrage.


#2

Good for them, at least one institution has learned the lesson.


#3

Should be tightening them in light of the proposed buyer incentives coming in.


#4

Yeah it wont take long, expect a raft of articles over the next couple of weeks lamenting how young people are shut out of obtaining a lifetime of unsustainable debt to buy overpriced badly built Irish houses. Because you know we cant, sorry I mean wont, build any family homes for you, you sniveling little shits.


#5

While I’m suspicious that it’s Europe behind this it’s welcome news all the same


#6

I’m expecting a slight tweaking but nothing major


#7

Great news for young buyers, even if they can’t yet appreciate that fact. We can’t afford another glut of bad debt provisioning in 5 years time.


#8

bizarre letter from a regular correspondant - reliable handwringing liberal
irishtimes.com/opinion/lette … -1.2812114

a solicitor in London I believe


#9

The IT needs to edit these letters a bit more.

:smiley:


#10

He has a point.

A friend of mine recently got a 100% mortgage in Belgium.

Apparently they have a (legally enforceable) lien on not just the property but his income in the event of any default.


#11

He doesn’t appear to grasp that increased credit leads to higher prices. He’s no free market libertarian.

Also doesn’t appear to realise that the only way is up for interest rates.


#12

Ah don’t be bringing up the old interest rates going up chestnut!


#13

Desmond is probably correct. Just looked up some repo stats - there’s been hardly any. So assuming that means hardly anyone has got into difficulty and the banks surely suffered very little losses. Right? Right?


#14

Right!


#15

Not sure if this deserves a thread of its own.

The Central bank is not playing ball with the govenment’s agenda to reduce mortgage rates.

Ed Sibley (Director of Credit Supervision) notes some evidence of a return to more aggressive lending practices and the pricing of loans relative to risk.


#16

Social Democrats


#17

The CB rules aren’t some sort of morality or frugality test. They’re designed to limit aggregate leverage in the system and reduce the risk of mortgage default by capping payments as a proportion of gross income.

It’s almost as if politicians still don’t understand the basic principles of banking.


#18

The Politicians know what they’re at. It’s easier to blame the Central bank on the problem than to point out that if they (the state) only built more houses they’d be cheaper for young people. However building more houses would depreciate the price of current houses which would piss off the current house owners which means less votes.


#19

So much for the highly principled SD’s. As 5hit as the rest of them


#20

I think with Donnelly leaving, they took a turn more to the left.
The “Irish left” though… which I feel doesnt really represents working people - more protecting wealthy elderly, public sector conditions, and increasing the social in an era of full employment. And having the lowest property tax in the developed world!

Sorry - just a bit cranky tonight! :-GC