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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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Posts: 2173
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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Location: London, innit
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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"Prediction is very difficult, especially about the future" – Niels Bohr


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 Post subject: Re: CBI - mortgage rules won't be changed.
PostPosted: Mon Oct 03, 2016 2:06 pm 
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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.


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 Post subject: Re: CBI - mortgage rules won't be changed.
PostPosted: Thu Oct 04, 2018 2:46 pm 
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Social Democrats


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 Post subject: Re: CBI - mortgage rules won't be changed.
PostPosted: Thu Oct 04, 2018 2:58 pm 
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Of Systemic Importance

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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.

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"It's easy to confuse what is with what ought to be, especially when what is has worked out in your favour"
Tyrion Lannister


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 Post subject: Re: CBI - mortgage rules won't be changed.
PostPosted: Thu Oct 04, 2018 4:37 pm 
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Joined: Oct 22, 2007
Posts: 1918
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.

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No tool is omnicompetent. There is no such thing as a master-key that will unlock all doors.
--Arnold Toynbee

If you want to improve, be content to be thought foolish and stupid.
--Epictetus


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 Post subject: Re: CBI - mortgage rules won't be changed.
PostPosted: Thu Oct 04, 2018 8:36 pm 
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So much for the highly principled SD's. As 5hit as the rest of them


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