Central Bank Consultation - Policy for mortgage lending


opportunity for financial ruin.


The LTV limit is silly for a variety of reasons. Affordability should be the key measure, adjusted for future expected disposable income.


irishtimes.com/opinion/we-ab … -1.2636546


.Therefore prices rise anyway." Thanks for not burdening us with your fancy “data” “calculations” or economic protections. It’s not even a back of the envelope calculations with these gimps, there is no envelope


Didn’t Sherry Fitz recently report that investors were fleeing the market? I cant keep up with these VIs they seem to get their facts from the same place as David Drumm.


Brendan goes to Heaven
"Editor of LIFE magazine Brendan O’Connor said the event exceeded all expectations. He spoke of the stress of doing up his own home and welcomed having all interior companies under one roof for consumers.
“That’s why an event like this is so fantastic,” he said. “It’s not only going to save people a lot of time and energy, I think an event like this can save marriages.”*

independent.ie/life/home-gar … 33718.html


Mortgage rules would have limited crisis - Central Bank

irishtimes.com/business/fina … -1.2678217


Now the new mortgage lending rules are the cause of old age poverty, ffs

irishtimes.com/opinion/lette … -1.2678427


I’ve no problem with CB rules.

But our current dysfunctional housing “system” will have all sorts of social & economic costs for young and old.


Yep methinks the above letter is missing the point that its the cost of accommodation that is the problem not the rules.


The people who don’t buy a property might actually have a better chance of providing for themselves than those who did buy an overpriced house on a 30 or 35 year mortgage which stole from them over 50% of their net income during their earning years.
At the very least those who don’t buy will be more mobile and can downsize to something more affordable or in line with their needs which is one of the benefits of the German system. Do you stay in a thee bed 120m. sq apartment in a suburb of Frankfurt like Darmstadt or retire to a little cottage in the relatively inexpensive Mosel valley watching the sun set on the vinyards? I know which I’d pick.


I presume this is the same Paddy Sweetman who is “a lead partner in the Commercial Property Department at Matheson. He is also head of the firm’s Development Land Group and joint head of the Environmental and Planning Law Group. He practises property development law and negotiates related sale and purchase contracts. He advises on all areas of property, with particular expertise in the design of privately managed schemes. He has prepared innovative structures for joint ventures both with public bodies and in the private sector, particularly in the provision of housing.”


Bug jump in approvals volumes for house purchase in April 2016, 2631 approvals (FTB+Mover Purchase+RIL).

Unusual for volumes to be spiking so early in the year, peak in last couple of years has come in July.

Will be interesting to see what May brings. One swallow…



Could it be that many couples now have the 20% saved up and are ready to buy in 2016?


Beware raw year-on-year comparisons around March and April. Easter matters!

It fell very early this year - March 27. Easter only falls earlier than this about one year in 10.

Not only does it alter the number of working days in the month it has psychological effects as people rush to complete (or postpone) things til Easter.


8 week period (15/06/16 to 10/08/16) for (evidence-based!) submissions to Central Bank mortgage lending review.

rte.ie/news/business/2016/06 … ro-review/

Just reflect on the numerous calls and objections CB policy has generated since even before it was introduced.


Fiona Reddan: “Fed up with the mortgage rules? Let the Central Bank know”

Pinsters should enter submissions in favour of the rules.


Done. Called for tightening & removal of FTB exception despite being in the market as FTB myself.


Extract from Goodbody’s morning briefing

"Mortgage approvals continued to strengthen in May, providing support to the view that the hangover in the aftermath of the macro-prudential rules may be starting to wear-off. This morning’s data from the Banking and Payments Federation of Ireland (BPFI) shows that the volume of mortgages approved in May grew by 15% yoy (+27% yoy in April). In value terms, growth of 27% yoy was seen in May (+35% yoy in April). Recognising the role of base effects, the two-year change provides an important gauge of momentum; on this basis, volume growth strengthened to 31% (29% yoy in April), with growth in value terms accelerating to 46% (+44% in April).

Taking the year-to-date, the value of mortgage approvals is now up 4% yoy. However, the value of approvals was down by 14% yoy in Q1. Re-mortgaging remains the fastest growing component (+57% yoy in the first five months of 2016), and now accounts for 7% of total lending (up from 5% in 2015). Within lending for house purchase, BTL approvals grew by 13% yoy in the first five months, with FTB loan approvals up by 3% yoy and approvals for mover-purchasers down by 1% yoy.

Base effects continue to play a role in the annual comparisons as approvals fell off significantly after the introduction of the macro-prudential rules at the start of 2015. However, two months of improvement does provide room for optimism with regard to a return of mortgage lending growth in Ireland."


The May 2016 numbers for Mover Purchase, both value of approvals (€249m) and average value (€252,992) are the highest since the numbers were first split in July 2014.

Overall it’s looking similar to 2015 but with a weaker Q1 and stronger Q2.


(edited for clarity)