CBI - mortgage rules won't be changed.


The IT needs to edit these letters a bit more.



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.


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.


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


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?




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.


Social Democrats


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.


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.


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


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


m.independent.ie/business/budge … 64695.html

“The whole deposit thing is scandalous too.”

No. No, it’s not.


Property tax is definitely left leaning.
There is no evidence that it is a root cause solution for Ireland’s problems.


Property tax is really the only way of screwing some money out of those who have paid off their mortgages, the fact that it also screws some out of everyone else is just coincidental.


Replace TRS by with a property tax deduction from interest payments. Up to a certain level only of course.


I totally agree that it’s left leaning in principle - but not the light-weight way that most Irish left leaning parties want to implement it!


Latest CBI lending rules review leaves them unchanged:

rte.ie/news/2018/1128/10138 … age_rules/

2018 review is available here:

centralbank.ie/financial-sy … e-measures

There are the usual complaints from the usual quarters, but the fact is it has stopped the mortgage market going completely bonkers in the face of supply constraints.


Headline talks it up, but lending is still anaemic.

And Banks Balance sheets are still being nursed. Not that it’s a bad thing, given where we came from, but 1.3% lending growth in the backdrop of the growth in tax revenues and house prices is constrictive, and shows that there are still serious concerns in the ECB, and the Bank ownerships about the true health of the Mortgage market.



A month-on-month drop in mortgage approvals in November - maybe seasonal, but it wasn’t the case in 2016 and 2017.
irishtimes.com/business/fin … -1.3747052

bpfi.ie/wp-content/uploads/ … r-2018.pdf

Annually, the picture is brighter:

What pace of mortgage growth would be healthy at this stage? From the near-standstill in 2011-201, surely faster growth is needed now if renters are to become home-owners.