Central Bank to limit amount banks lend for home purchase

Sala

Lol, it'll be a terrible let down if he doesn't mention it!!! I'm hoping I can hear it, MY work PC has no proper speaker. Will have to keep refreshing boards, the property pin,. twitter... I am so sad

El_Dangeroso

Exciting indeed, we are all so sad!:D

Is there a link to a live stream?

El_Dangeroso

El_Dangeroso wrote: »

Exciting indeed, we are all so sad!:D

Is there a link to a live stream?

http://www.imf.org/external/np/seminars/eng/2014/ireland/

jay0109

You wouldn't know from the headline
http://www.irishtimes.com/business/financial-services/it-s-time-to-write-off-mortgage-arrears-schoenmaker-1.2071108

It’s time to write off mortgage arrears - Schoenmaker...
Dirk Schoenmaker, dean of the Duisenberg School of Finance in the Netherlands, also said Ireland needs to introduce a loan-to-value (LTV) ratio of 80 per cent for residential mortgages if we are to avoid another property boom and bust.
Such a move was proposed by the Central Bank of Ireland late last year.

Sala

Nope, no joy today

http://www.centralbank.ie/press-area/speeches/Pages/AddressbyGovernorPatrickHonohantotheIMF-CEPR-CentralBankofIrelandConference.aspx

El_Dangeroso

Awww. The wait continues. He did say by end of January.

@IndoBusiness

@IndoBusiness on Twitter is quoting Honohan as saying there would be news 'within days'.

Panda_Turtle

Deleted User wrote: »

@IndoBusiness on Twitter is quoting Honohan as saying there would be news 'within days'.

Within 364 days!

I see the DoFinance have told the IMF conference in Dublin that the proposals are 'socially unacceptable'.

Buuuut...Honohan seems fairly sure that something very like the original proposal will prevail.

According to RTE:
"There's been resistance from different sources. We are trying to see what can we do to achieve the goals of what we set out, are there any elements that need to be re-looked at?" Honohan told reporters.
"The final decision will be taken on this in the coming days and I wouldn't like to anticipate that, I'm not the only decision maker. I'm hoping my views will actually prevail, I'm sure they will probably."

gaius c

gaius c wrote: »

Either way, it's terribly exciting, isn't it!

Master of suspense this Honohan chap...

stevedublin

This is so exciting, I simply can't wait!
People who are renting will NEVER be able to buy after this!
That's just great, isn't it?
:rolleyes:

stevedublin

stevedublin wrote: »

This is so exciting, I simply can't wait!
People who are renting will NEVER be able to buy after this!
That's just great, isn't it?
:rolleyes:

I'm renting. I fear I'll never be able to buy if these rules don't come in and prices rise 20%+ as they did last year!

Lucy B

We were only few k away from our deposit!!!!! Going mad. We really are. And like I've said before it wasn't a huge mortgage we were after. Saving for another 10% sucks. We'll be grey haired and have teenage kids and then bloody banks won't give us mortgage because we will be too old!!!!!!!! Argh!!!

Sala

Lucy remember you deposit is relative to the price of the house. If house prices keep going up at 20+% a year you'd still be 1000s off a 10% deposit and never catch up. If prices come down, you'll still have to save but not double what you have

Piriz

Sala wrote: »

Lucy remember you deposit is relative to the price of the house. If house prices keep going up at 20+% a year you'd still be 1000s off a 10% deposit and never catch up. If prices come down, you'll still have to save but not double what you have

also the amount you have to borrow and repay will be less..

kreuzberg09

Lucy B wrote: »

We were only few k away from our deposit!!!!! Going mad. We really are. And like I've said before it wasn't a huge mortgage we were after. Saving for another 10% sucks. We'll be grey haired and have teenage kids and then bloody banks won't give us mortgage because we will be too old!!!!!!!! Argh!!!

Yeah Lucy, why not keep repeating the same stupid mistakes of the past that resulted in the country going bankrupt and the prudent bailout the profligate once more, keep on throwing more credit on the fire, what can possibly go wrong.

If the Central Bank rolls back on these LTI/LTV proposals, then it truly is a corrupt state

MarkAnthony

the LTI is all that's needed frankly the LTV rate is simply a protection for the banks. I think it would be fairer to phase in the LTV.

makeorbrake

kreuzberg09 wrote: »

Yeah Lucy, why not keep repeating the same stupid mistakes of the past that resulted in the country going bankrupt and the prudent bailout the profligate once more, keep on throwing more credit on the fire, what can possibly go wrong.

Who said turkeys don't vote for christmas.

Kinet1c

Lucy B wrote: »

We were only few k away from our deposit!!!!! Going mad. We really are. And like I've said before it wasn't a huge mortgage we were after. Saving for another 10% sucks. We'll be grey haired and have teenage kids and then bloody banks won't give us mortgage because we will be too old!!!!!!!! Argh!!!

If it's taking you a long time to get 10% for a small mortgage then you should reevaluate either your monthly savings amount or the property you're looking to buy.

quadrifoglio verde

[Deleted User] wrote: »

I see the DoFinance have told the IMF conference in Dublin that the proposals are 'socially unacceptable'.

Buuuut...Honohan seems fairly sure that something very like the original proposal will prevail.

Yet it's socially acceptable to allow people over extend themselves. As I said at the start of this thread, people need protecting from their own recklessness

Gumbo

Kinet1c wrote: »

If it's taking you a long time to get 10% for a small mortgage then you should reevaluate either your monthly savings amount or the property you're looking to buy.

Maybe they are paying rent on top of saving ?

Sala

Kinet1c wrote: »

If it's taking you a long time to get 10% for a small mortgage then you should reevaluate either your monthly savings amount or the property you're looking to buy.

If I recall correctly I think she is a unique position of trying to buy her rented house so it's a case of complete now or it's put onto market. Which, to be fair, is a bummer

kippy

There are a lot of people here hammering others for wanting to own their own home.
Now while I can appreciate there is genuine concern that there are people out there who MAY over extend themselves to own their own home there is also the very real situation, right now, of rents going up significantly in all the cities, cities where the majority of jobs are.
In an environment where rents continue to rise at a crazy rate and mortgages are getting more difficult to get, it's is only expected that people would want to purchase a house sooner rather than later and it may make perfect financial sense to do so, depending on numerous variables, very few of which are obvious through internet posts.

mr_seer

kippy wrote: »

There are a lot of people here hammering others for wanting to own their own home.
Now while I can appreciate there is genuine concern that there are people out there who MAY over extend themselves to own their own home there is also the very real situation, right now, of rents going up significantly in all the cities, cities where the majority of jobs are.
In an environment where rents continue to rise at a crazy rate and mortgages are getting more difficult to get, it's is only expected that people would want to purchase a house sooner rather than later and it may make perfect financial sense to do so, depending on numerous variables, very few of which are obvious through internet posts.

I think you are missing the point Kippy. Most people very much want to own a home and indeed it is a very admirable aspiration. The issue is that Michael Noonan and the rest of the government have done their level best to inflate house prices since 2011. They have done everything possible to strangle supply and stimulate demand and this is borne out by soaring rents and house prices in Dublin particularly. The CB is doing everything within its power/remit to contain this. Now the government needs to do its job - create the conditions whereby supply will come on. This should be a two pronged approach. Reduce building costs (numerous means in which this can be done) - this is the carrot - and tax the hell out of vacant land that is zoned or has planning permission - this is the stick. Noonan won't allow this because it threatens to undo all of his 'good' work in inflating the new property bubble. So in a nutshell the problem is not the CB or its sensible proposals, it is the government and its reckless policies

Lucy B

kceire wrote: »

Maybe they are paying rent on top of saving ?

Yes we are. And saving. And living. It's manageable but frustrating as our mortgage repayment will be the same as our rent payments, we are well able to afford the mortgage, just the thought of getting another 10% is depressing. We'll do it, but would rather it be done now with our 10% deposit.
As a previous poster pointed out that we are the problem, think he mentioned something about throwing credit around and ithat we haven't learned anything etc etc, I disagree, we are not the problem. I'm not in debt up to my eyes, I'm not silly with money, pay everything on time, I didn't take out a couple of mortgages during "the good times", we are simply looking to buy now, and am a bit fed up at the timing of the whole thing!! Just as we are ready to apply......sorry lads, there's been a rule change! I understand it means borrowing less but it's a bitter pill to swallow for me.
And I actually do agree with the LTI limits. That makes sense. If we had borrowed at 4.5 times income our mortgage repayments would be much higher, I'd rather a smaller house and more cash in my account.

Gumbo

Lucy B wrote: »

Yes we are. And saving. And living. It's manageable but frustrating as our mortgage repayment will be the same as our rent payments, we are well able to afford the mortgage, just the thought of getting another 10% is depressing. We'll do it, but would rather it be done now with our 10% deposit.
As a previous poster pointed out that we are the problem, think he mentioned something about throwing credit around and ithat we haven't learned anything etc etc, I disagree, we are not the problem. I'm not in debt up to my eyes, I'm not silly with money, pay everything on time, I didn't take out a couple of mortgages during "the good times", we are simply looking to buy now, and am a bit fed up at the timing of the whole thing!! Just as we are ready to apply......sorry lads, there's been a rule change! I understand it means borrowing less but it's a bitter pill to swallow for me.
And I actually do agree with the LTI limits. That makes sense. If we had borrowed at 4.5 times income our mortgage repayments would be much higher, I'd rather a smaller house and more cash in my account.

You do realise that I was actually agreeing with you and backing you up over the other posters remarks about rethinking your finances, don't you??

Lucy B

Ya, didn't mean you. Thanks cant remember who the poster was, just annoys me as it's automatically assumed that we are being silly wanting to buy now.

gaius c

There's more costs to owning than simply paying the mortgage.

kippy

mr_seer wrote: »

I think you are missing the point Kippy. Most people very much want to own a home and indeed it is a very admirable aspiration. The issue is that Michael Noonan and the rest of the government have done their level best to inflate house prices since 2011. They have done everything possible to strangle supply and stimulate demand and this is borne out by soaring rents and house prices in Dublin particularly. The CB is doing everything within its power/remit to contain this. Now the government needs to do its job - create the conditions whereby supply will come on. This should be a two pronged approach. Reduce building costs (numerous means in which this can be done) - this is the carrot - and tax the hell out of vacant land that is zoned or has planning permission - this is the stick. Noonan won't allow this because it threatens to undo all of his 'good' work in inflating the new property bubble. So in a nutshell the problem is not the CB or its sensible proposals, it is the government and its reckless policies

Can you think why the state would wish to inflate house prices from the prices in 2010/2011 that they were at?

The Spider

Supply folks, it's all about supply, new rules mean builders won't build, the land is still going to cost a fair chunk either way irregardless of taxes. If there's no one to sell houses to why would you build them?

The below link will show you some rough costs excluding the land costs, solicitors and the usual.

http://www.planahome.ie/calculator2?nid=239&check=1

It doesn't take into account the fabled SCD or other desirable areas.