Central Bank to limit amount banks lend for home purchase

gaius c

BoatMad wrote: »

As an aside, A low BER , for the most part means you will play more to heat the house to an acceptable level and also the thermal store effect will be low. However, simply because the BER is low, doesent mean you have to spend 50K, merely perhaps add 25% to the heating costs, so lets say its goes from 2K a year heating to 2.5K.. Most " green " initiatives never make any economic sense as their returns take years and years . ( i.e. the Return on Capital invested is lubricious) . Thats why the price of the house isn't really affected

People live in houses for "years and years". €500 a year would be a huge saving, not to mention better for their health.

dr.fuzzenstein

BoatMad wrote: »

I lived in an 1800 sq detached , with E rating, cost about 1500 euros in natural gas to heat per annum. ( average over 10 years )

I now live in a similar sized C1, Id say costs have fallen by about 20%, i.e. 300 euros. Hence taking say a 10 year return on savings, that would justify spending 3K euros on insulation. wouldn't go very far at all.

Getting your house insulated is good engineering , thats for sure, however it was not and never been good economics, no matter what the pundits try to convince you off.

The pricing for these green efforts is usually based on fictional savings. The thinking is
Marketing: "We tell people they can save €4000 over 10 years if they buy our product, so we sell the product for €3999.99 and thell them there's savings to be had"
Manufacturing "But it only costs €500 to produce"
Marketing "Quiet you fool! There's money to be made!"
Otherwise, how can a lightbulb with an LED cost €10 to buy? LED's cost €0.01

PRAF

Regarding BER, there is a standing charge in place. There is also the fact that people in en energy inefficient house will typically just heat it to a lower temperature and / or severely ration their energy usage. However, it makes great sense to choose an energy efficient house. Even more so because in the medium to long term, energy prices are going to rise substantially.

Kinet1c

gaius c wrote: »

It won't last long. Viewings are actually quite busy but only if places are priced right. After a few months of no viewings, the pin will drop and so will the asking price.

Haha, we saw that house up at 650k and laughed, same with this one. The later is nice but I can only hope they've it up at that price due to pressure from the banks and don't actually think they'll get anywhere close to the asking. It's lovely inside but they'd want to drop about 150k off the asking to get some interest.

jay0109

Kinet1c wrote: »

Haha, we saw that house up at 650k and laughed, same with this one. The later is nice but I can only hope they've it up at that price due to pressure from the banks and don't actually think they'll get anywhere close to the asking. It's lovely inside but they'd want to drop about 150k off the asking to get some interest.

Ballyroan Rd houses were selling for low-mid 400k only 18 months.

Sala

My bank is still advising applications in the range of 4 times income and 10% deposit. I suspect the new rules will have no impact until at least next year

moxin

BoatMad wrote: »

I lived in an 1800 sq detached , with E rating, cost about 1500 euros in natural gas to heat per annum. ( average over 10 years )

I now live in a similar sized C1, Id say costs have fallen by about 20%, i.e. 300 euros. Hence taking say a 10 year return on savings, that would justify spending 3K euros on insulation. wouldn't go very far at all.

Getting your house insulated is good engineering , thats for sure, however it was not and never been good economics, no matter what the pundits try to convince you off.

I have to agree here.

I also live in a BER C1 house, without any heating it is bloody freezing in the winter with temps around 7-10C depending how cold it is outside. It's a new build(a few years old), BER involves the damn ratings of the light bulbs as well which has zero affects on a persons survival in winter! All I care about as a human being is to keep me warm.

I've calculated my winter gas bill to be roughly 350 maybe 400 from start of Nov to the end March To justify spending a moderate 7k(random cheap figure) to insulate the house, the break even is 20 years! Obviously, it gets worse the higher the insulation cost. There is no grant available as the house was built after 2006, a stupid idiotic rule imposed from the SEAI so I have to waste gas to keep warm. http://www.seai.ie/Grants/Better_energy_homes/

At the end of the day, do I spend the money now to insulate or just waste gas to heat the home, unfortunately the latter is the best option.

Kinet1c

moxin wrote: »

I have to agree here.

I also live in a BER C1 house, without any heating it is bloody freezing in the winter with temps around 7-10C depending how cold it is outside. It's a new build(a few years old), BER involves the damn ratings of the light bulbs as well which has zero affects on a persons survival in winter! All I care about as a human being is to keep me warm.

I've calculated my winter gas bill to be roughly 350 maybe 400 from start of Nov to the end March To justify spending a moderate 7k(random cheap figure) to insulate the house, the break even is 20 years! Obviously, it gets worse the higher the insulation cost. There is no grant available as the house was built after 2006, a stupid idiotic rule imposed from the SEAI so I have to waste gas to keep warm. http://www.seai.ie/Grants/Better_energy_homes/

At the end of the day, do I spend the money now to insulate or just waste gas to heat the home, unfortunately the latter is the best option.

I've similar thoughts towards solar panels for heating water, getting the return on the capital outlay just takes too long.

Glenbhoy

Sala wrote: »

My bank is still advising applications in the range of 4 times income and 10% deposit. I suspect the new rules will have no impact until at least next year

Ridiculous behaviour, there may be some lag and as some have mentioned, maybe a temporary upsurge, but I think by mid summer, the market will have normalised (or as normal as it can get in this place).

matrim

http://www.irishtimes.com/opinion/head-to-head-are-the-new-mortgage-rules-a-good-thing-1.2094034

dr.fuzzenstein

No point arguing any more. I begged, borrowed, stole, lied and cheated to get my house, it nearly killed me to keep it and the state and banks tried their best to ruin me with tax hike after tax hike and ruinous, greedy interest rates that bear no relation to the actual market. (German mortgages are below 3% for example).
So now not being in negative equity, I am looking forward to buying my next house and hopefully cutting my mortgage or eliminating it altogether. In this case I have to say thank God it worked, apres mois le deluge and tough sh*t for anyone buying a new house, sorry we're kicking the ladder away.
With a bit of luck I might even get my tracker back that the corrupt thieves and crooks at EBS have illegally taken off me, aided by the corrupt ombudsman:
http://www.rte.ie/news/business/2015/0205/678138-ptsb-tracker-fso/

ElizKenny

Watch now. IF house prices start to fall, there will be adjustments to make them rise again.
Followed by more adjustments. Its like running with a basin of water.
Just leave it sitting and it will stabalize

RecordStraight

Sala wrote: »

My bank is still advising applications in the range of 4 times income and 10% deposit. I suspect the new rules will have no impact until at least next year

Might be worth a two-line email to the Central Bank.

MarkAnthony

Again I think people have missed the fact that these rules are able to be waived in a certain % of situations, it's not a blanket ban.

handlemaster

RecordStraight wrote: »

Might be worth a two-line email to the Central Bank.

but a certain amount of mortgages can be outside the restrictions

Stench Blossoms

Sorry if this has already been explained but if one person is a FTB and the other isn't does the 10% rule still apply or is it 20% ?

Sarn

Stench Blossoms wrote: »

Sorry if this has already been explained but if one person is a FTB and the other isn't does the 10% rule still apply or is it 20% ?

My understanding is that if one of the applicants is not a FTB then the 20% would apply. This is how FTB status for a couple used to work in the past.

irish gent

I need to buy out my partners share of the home. I need 80k of a loan i'm 53 years old in a full time job. just started to save some money with AIB now as I will be asking next year for the loan. I will keep saving regularly for the 14 months as I think it looks good on the books.
I was just wondering my changes of getting this loan at my age that will they turn me away ?? thanks

seamus

If you already own 50% of the property outright, then you won't fall foul of the 20% rule in getting the mortgage. You'll have no trouble getting a 10 year loan for €80k (though they might require you to take a minimum mortgage of €100k). The stressed repayment on that is still under €1k/month, so as long as you can afford that you should have no issue getting this loan.

impr0v

handlemaster wrote: »

but a certain amount of mortgages can be outside the restrictions

Has anyone discussed with the banks what they would require from an applicant who sought an exemption?

I have seen commentary saying excellent wage prospects, and an explanation as to why they don't have more savings - e.g. time spent in further education.

Glenbhoy

Stench Blossoms wrote: »

Sorry if this has already been explained but if one person is a FTB and the other isn't does the 10% rule still apply or is it 20% ?

The document released by the CBI last week states that FTB status or otherwise will be determined by reference to Revenue rules, in the situation above, they would dictate that the applicants are not FTB's.

However, as others have pointed out, the guidelines do allow for approx 15% of mortgages issued to deviate from the 20% and 3.5 LTI rules.

jay0109

impr0v wrote: »

Has anyone discussed with the banks what they would require from an applicant who sought an exemption?

I have seen commentary saying excellent wage prospects, and an explanation as to why they don't have more savings - e.g. time spent in further education.

I've spoken to the bank I'm AiP with. No info from head office yet as to how this will work, when it starts etc...totally in the dark

tigershould

RecordStraight wrote: »

Might be worth a two-line email to the Central Bank.

Spoke to bank during the week. New CB rules have not officially kicked in yet so I can apply based on 10% still.

um7y1h83ge06nx

You will love this, can't quote the whole thing as I'm on the phone but here's the link.

http://m.independent.ie/business/personal-finance/property-mortgages/credit-unions-hatch-plan-to-thwart-new-mortgage-cap-30973432.html

Hurray, the credit unions will help buyers thwart the bad new mortgage rules by allowing buyers parents get themselves into debt.

PRAF

Jacoby Yellow Quota wrote: »

You will love this, can't quote the whole thing as I'm on the phone but here's the link.

http://m.independent.ie/business/personal-finance/property-mortgages/credit-unions-hatch-plan-to-thwart-new-mortgage-cap-30973432.html

Hurray, the credit unions will help buyers thwart the bad new mortgage rules by allowing buyers parents get themselves into debt.

This kind of thing is absolutely f***ing insane.

gaius c

PRAF wrote: »

This kind of thing is absolutely f***ing insane.

***Sindo alert***
Treat iffy journalism with large amounts of salt.

Bob24

Jacoby Yellow Quota wrote: »

You will love this, can't quote the whole thing as I'm on the phone but here's the link.

http://m.independent.ie/business/personal-finance/property-mortgages/credit-unions-hatch-plan-to-thwart-new-mortgage-cap-30973432.html

Hurray, the credit unions will help buyers thwart the bad new mortgage rules by allowing buyers parents get themselves into debt.

Borrowing to gather a deposit to borrow more. What could possibly go wrong?

dr.fuzzenstein

Jacoby Yellow Quota wrote: »

You will love this, can't quote the whole thing as I'm on the phone but here's the link.

http://m.independent.ie/business/personal-finance/property-mortgages/credit-unions-hatch-plan-to-thwart-new-mortgage-cap-30973432.html

Hurray, the credit unions will help buyers thwart the bad new mortgage rules by allowing buyers parents get themselves into debt.

Well, we introduced rules that mean only moneybags can buy anything and normal people might be able to buy a shack for at most €200k if they forfeit having children or any kind of life until well into their 30's. We truly love the Dickensian lifestyle in this country.
Also we love punishing the people for the faults of the institutions. Then we stand on the resulting heap of rubble, banging our chests shouting "Hah! We showed them!"
Ireland. Deliberately doing it wrong and being proud of it.

audi12

dr.fuzzenstein wrote: »

Well, we introduced rules that mean only moneybags can buy anything and normal people might be able to buy a shack for at most €200k if they forfeit having children or any kind of life until well into their 30's. We truly love the Dickensian lifestyle in this country.
Also we love punishing the people for the faults of the institutions. Then we stand on the resulting heap of rubble, banging our chests shouting "Hah! We showed them!"
Ireland. Deliberately doing it wrong and being proud of it.

Thought credit unions were not happy they couldent lend as much as they wanted how will they manage to lend even more now

Gumbo

impr0v wrote: »

Has anyone discussed with the banks what they would require from an applicant who sought an exemption?

I have seen commentary saying excellent wage prospects, and an explanation as to why they don't have more savings - e.g. time spent in further education.

jay0109 wrote: »

I've spoken to the bank I'm AiP with. No info from head office yet as to how this will work, when it starts etc...totally in the dark

Banks are still working off the old rules we are AIP but lodged all our docs for official letter of offer. Up with the underwriters at present.