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 Post subject: CBI - mortgage rules won't be changed.
PostPosted: Sun Sep 25, 2016 7:14 pm 
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The Central Bank has indicated that it will not alter the mortgage deposit restrictions when the first review of the new rules is published in November.

In a speech last night, the bank's deputy governor Sharon Donnery said it was too early to change the measures and that it would be unwise to adjust them at this stage.


http://www.rte.ie/news/2016/0925/819101-central-bank/

Cue political outrage.

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 Post subject: Re: CBI - mortgage rules won't be changed.
PostPosted: Sun Sep 25, 2016 7:27 pm 
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Good for them, at least one institution has learned the lesson.


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 Post subject: Re: CBI - mortgage rules won't be changed.
PostPosted: Sun Sep 25, 2016 8:30 pm 
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Should be tightening them in light of the proposed buyer incentives coming in.

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 Post subject: Re: CBI - mortgage rules won't be changed.
PostPosted: Sun Sep 25, 2016 9:31 pm 
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Mantissa wrote:
Quote:
The Central Bank has indicated that it will not alter the mortgage deposit restrictions when the first review of the new rules is published in November.

In a speech last night, the bank's deputy governor Sharon Donnery said it was too early to change the measures and that it would be unwise to adjust them at this stage.


http://www.rte.ie/news/2016/0925/819101-central-bank/

Cue political outrage.


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.


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 Post subject: Re: CBI - mortgage rules won't be changed.
PostPosted: Sun Sep 25, 2016 10:06 pm 
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While I'm suspicious that it's Europe behind this it's welcome news all the same

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Borrowers seeking mortgages have had to resort to saving deposits, forcing many to sit by and watch house prices tumble without being able to do anything about it. Sunday Independent - June 1 2008

I know a lot of them, like [Jimmy] Flynn, [Noel] O’Flaherty and the Baileys. You meet the Baileys at Croke Park every time you go there. You can’t avoid getting a slap on the back going in from them. Most of these guys lost their shirt. I feel sorry for them - Bertie Ahern


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 Post subject: Re: CBI - mortgage rules won't be changed.
PostPosted: Mon Sep 26, 2016 9:47 am 
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I'm expecting a slight tweaking but nothing major


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 Post subject: Re: CBI - mortgage rules won't be changed.
PostPosted: Mon Sep 26, 2016 9:57 am 
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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.


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 Post subject: Re: CBI - mortgage rules won't be changed.
PostPosted: Sat Oct 01, 2016 1:22 pm 
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bizarre letter from a regular correspondant - reliable handwringing liberal
http://www.irishtimes.com/opinion/lette ... -1.2812114


a solicitor in London I believe

Quote:

Sir, – It is bizarre to hear all the whingeing and moaning from the home-owning class, be they resident homeowners or buy-to-let investors. They all seem to forget that they have a capital asset that even with a massive economic downturn will still be worth more at the end of the mortgage term, even after a modest capital gains tax bill for some, than they could ever afford to have saved if they were aiming for a similar lump sum based on a monthly contribution into a savings plan.

Why is it in Ireland the default response to pandering to whatever well-heeled section of society Fine Gael is courting is to offer a direct tax subsidy that becomes a burden on the current account? Each euro paid as a grant to people buying a house is one less euro for spending on services people make such claims about wanting.
If the Government is serious about helping proper first-time buyers – people who have never owned a home and don’t have a silver spoon from their family or parents – then it can mandate the Central Bank to end the ridiculous expectation for a deposit.

The only requirement buyers should need to meet is an ability to pay the mortgage they are asking for, whether they have a deposit or not.

I’m not aware of a single homeowner who had their house repossessed and was given back the deposit, or a lump sum after the bank fire sale, to enable them rebuild their life.
The argument that a deposit gave the homeowner an initial buffer zone that could help them later on if they ever got into difficulty was always nonsense and remains so. If you set up a mortgage and for whatever reason you find yourself unable to pay, the fact you had a 10 per cent or 20 per cent deposit will be of no benefit to you because the bank will sell the house for enough to clear its loan and any equity you had will be lost. Having had a deposit provides no protection to you.

If Minister for Housing Simon Coveney is serious about increasing lending liquidity, then he would step away from the nonsense of creating more paperwork to administer a direct transfer of wealth from the taxpayer to the middle class and instead he would focus on mortgage lending rules. The notion that a bank can’t properly assess the affordability of an application for a 100 per cent or even a 110 per cent mortgage beggars believe. If a person is paying €1,500 rent and has a record of doing so, then they can afford a €1,500 mortgage.

It’s that simple, but the Central Bank provides cover to banks who are protecting the vested interest of a small number of property speculators who used to have Fianna Fáil at their beck and call but now have Fine Gael to do their bidding. – Yours, etc,

DESMOND FItzGERALD ,
Canary Wharf,
London.


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 Post subject: Re: CBI - mortgage rules won't be changed.
PostPosted: Sat Oct 01, 2016 1:48 pm 
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I'm genuinely not sure Desmond understands the concept of debt.


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 Post subject: Re: CBI - mortgage rules won't be changed.
PostPosted: Sat Oct 01, 2016 2:56 pm 
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The IT needs to edit these letters a bit more.

DESMOND FItzGERALD wrote:
I’m not aware of a single homeowner who had their house repossessed...It’s that simple

:D

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 Post subject: Re: CBI - mortgage rules won't be changed.
PostPosted: Sun Oct 02, 2016 8:19 am 
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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.


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 Post subject: Re: CBI - mortgage rules won't be changed.
PostPosted: Sun Oct 02, 2016 8:21 am 
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He doesn't appear to grasp that increased credit leads to higher prices. He's no free market libertarian.

Quote:
If a person is paying €1,500 rent and has a record of doing so, then they can afford a €1,500 mortgage.


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


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 Post subject: Re: CBI - mortgage rules won't be changed.
PostPosted: Sun Oct 02, 2016 8:36 am 
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slasher wrote:
He doesn't appear to grasp that increased credit leads to higher prices. He's no free market libertarian.

Quote:
If a person is paying €1,500 rent and has a record of doing so, then they can afford a €1,500 mortgage.


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!


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 Post subject: Re: CBI - mortgage rules won't be changed.
PostPosted: Sun Oct 02, 2016 10:39 am 
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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?

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Borrowers seeking mortgages have had to resort to saving deposits, forcing many to sit by and watch house prices tumble without being able to do anything about it. Sunday Independent - June 1 2008

I know a lot of them, like [Jimmy] Flynn, [Noel] O’Flaherty and the Baileys. You meet the Baileys at Croke Park every time you go there. You can’t avoid getting a slap on the back going in from them. Most of these guys lost their shirt. I feel sorry for them - Bertie Ahern


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 Post subject: Re: CBI - mortgage rules won't be changed.
PostPosted: Sun Oct 02, 2016 11:42 pm 
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Renting And Proud! wrote:
So assuming that means hardly anyone has got into difficulty and the banks surely suffered very little losses. Right? Right?

Right!


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