Central Bank Consultation - Policy for mortgage lending


Is that a measure of health and optimism of the banks as demonstrated in approving applications or a measure of demand for mortgages?


A healthy market is one with lots of transactions, not necessarily high prices.

Lots of transactions means people see the benefit of trading and are presumably happier in their new place.

Housing stock still turning over less than once every 30 years though which is very low by international standards. I think there are still a lot of people out there who are not optimally housed for all sorts of reasons.


Banks can still only lend as per the CBI rules. I’ve just been mortgage approved and even though I would be a relatively high earner the value of the mortgage would struggle for prices in Tallaght let alone my preferred area. I would imagine a lot of people will have to start moving away from the dream of living in D4/6 and become more accepting of D14/16.


irishtimes.com/business/econ … -1.2728692

WTF is this - (I’m not just referring to the use of the word revert :unamused: )- but the Oil loans stuff - has he been hanging out with Jery Beades


Well he sounds like a reasonable chap.


If idiots like this can make tens of millions in Ireland, I should just pack it all in. I can’t go on!


And this wanker got unchallenged airtime to push that agenda of his, without ever being called on it.


Excellent read, concise and on point

"A scarcity of accommodation is not solved by lending limits. But house prices are lower, mortgages smaller, banks safer, and taxpayers sleep more peacefully; admittedly miscellaneous middlemen may earn lower fees and journalists have to search elsewhere for a story.

Credit limits protect house buyers when there are more buyers than the kinds of houses they want to buy."

irisheconomy.ie/index.php/20 … the-wheel/


I like this …
‘Only the rich can now afford housing’ says the newspaper headlines, but without credit limits only the over-indebted could


Excellent piece


centralbank.ie/press-area/pr … rules.aspx

centralbank.ie/publications/ … o.%203.pdf


Very interesting.


Great data.



" The average loan drawn down by First Time Buyers in scope of the rules was €172,872, with an average property price of €234,599 and average income of €64,721.
For second and subsequent buyers the average loan drawn down (in scope) was €203,539, with an average property price of €374,644 and an average income of €104,331. "

Very little difference in loan size - pre and post introduction


PIBA warns ‘lost generation’ unable to buy homes

rte.ie/news/2016/0824/811547 … erty-rent/

Well obviously they want lending loosened as they only get paid when people use them to get mortgages


A lost generation is not a new prospect, they have that bit right (is it multi-lost at this point?) but the cause is supply. Plain and simple. Demand for lending at sustainable levels would occur if supply was not being actively asphyxiated by success governments in league with the great and good. This is not ending well. The signs are all around if you are not immediately affected by them.


“Lost generation”? They make renting sound like the civil war in Sierra Leone.


The Irish Times take on that report

irishtimes.com/business/pers … -1.2766760

I have never heard or seen that word before! They’re really digging through the dictionary to find new ways of describing the horrors the CB is inflicting on the ordinry peopl of Ireland!


A colleague and his girlfriend (both 29) now have a combined income of €100k after a lot of work and study.

They save, so they will be able to buy an apartment within walking distance of both jobs.

A few more years saving and likely promotion will leave them able to purchase a house in 5 years or so when family needs are bigger.

Is Dublin as affordable as 2012? No.

Is it Manhattan? No.


20%? I thought it was 10% for FTBs