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Central bank mortgage lending rate changes

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«134567

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    #2
    JP 1800
    Registered Users Posts: 338 ✭✭JP 1800


    The rules should be left alone, the problem is not how much you can borrow but how little supply there is. As someone whom plans to buy in the new year I feel that the rules are just fine and I do not need more credit, I need more buying options through supply. I have a whole sense of Deja Vu with the property market at the moment as prices are unsustainable as they are and we are blindly walking into another disaster. We need to remember that interest rates are the lowest they have ever been and a 3 to 4 percentage hike could be disastrous for mortgage holders.


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    #3
    Rew
    Moderators, Sports Moderators Posts: 8,679 Mod ✭✭✭✭Rew


    Jesus that would be disastrous if true... :(


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    #4
    handlemaster
    Registered Users Posts: 6,003 ✭✭✭handlemaster


    JP 1800 wrote: »
    The rules should be left alone, the problem is not how much you can borrow but how little supply there is. As someone whom plans to buy in the new year I feel that the rules are just fine and I do not need more credit, I need more buying options through supply. I have a whole sense of Deja Vu with the property market at the moment as prices are unsustainable as they are and we are blindly walking into another disaster. We need to remember that interest rates are the lowest they have ever been and a 3 to 4 percentage hike could be disastrous for mortgage holders.

    Dont think the prices are that bad. You can still get three bed semi s below 200k in dublin. Try that in any other europen capital city.


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    #5
    Michael D Not Higgins
    Registered Users Posts: 7,223 ✭✭✭Michael D Not Higgins


    handlemaster wrote: »
    Dont think the prices are that bad. You can still get three bed semi s below 200k in dublin. Try that in any other europen capital city.

    Lisbon, Madrid, Warsaw are all much cheaper than Dublin. Paris and London are more expensive. There's not much point looking at it like that though as it's not a good metric to compare.


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    #6
    handlemaster
    Registered Users Posts: 6,003 ✭✭✭handlemaster


    Michael D Not Higgins wrote: »
    handlemaster wrote: »
    Dont think the prices are that bad. You can still get three bed semi s below 200k in dublin. Try that in any other europen capital city.

    Lisbon, Madrid, Warsaw are all much cheaper than Dublin. Paris and London are more expensive. There's not much point looking at it like that though as it's not a good metric to compare.
    not salary wise they are not:


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    #7
    Michael D Not Higgins
    Registered Users Posts: 7,223 ✭✭✭Michael D Not Higgins


    handlemaster wrote: »
    not salary wise they are not:

    You didn't mention anything about salary. Nonetheless your simplified view belies many factors.


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    #8
    handlemaster
    Registered Users Posts: 6,003 ✭✭✭handlemaster


    Michael D Not Higgins wrote: »
    You didn't mention anything about salary. Nonetheless your simplified view belies many factors.


    Here you go... undervalued by 15 % latest report

    http://m.independent.ie/business/personal-finance/house-prices-to-rise-further-with-easing-of-lending-limits-35234804.html


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    #9
    Michael D Not Higgins
    Registered Users Posts: 7,223 ✭✭✭Michael D Not Higgins


    handlemaster wrote: »
    Here you go... undervalued by 15 % latest report

    http://m.independent.ie/business/personal-finance/house-prices-to-rise-further-with-easing-of-lending-limits-35234804.html

    And how undervalued are they in similar cities which experienced a housing collapse like Madrid or Lisbon? In fact in the same study referenced in the Independent, there's plenty of countries not doing as well as Ireland. We also have the third highest rate of housing price inflation in the EU (after Hungary and Sweden), even if the prices are a little undervalued it won't be long before we catch up.

    My point was not to get into a back and forth argument but to point out there are plenty of places with similarly depressed prices around Europe, contrary to your assertion. The common comparators of UK and Germany against our housing market are unfair on the whole. They have bounced back much quicker than Ireland due to their size and economic might. To compare on the basis of recovery, we're doing better than our European cousins in Spain, Portugal, etc.

    The prices might not be too bad now as you mentioned, but with high inflation and relaxing of lending rules, you can guarantee they're going to start getting worse.


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    #10
    Lumen
    Registered Users Posts: 31,080 ✭✭✭✭Lumen


    handlemaster wrote: »
    Here you go... undervalued by 15 % latest report

    http://m.independent.ie/business/personal-finance/house-prices-to-rise-further-with-easing-of-lending-limits-35234804.html
    Michael D Not Higgins wrote: »
    And how undervalued are they in similar cities which experienced a housing collapse like Madrid or Lisbon?

    To be clear, the report suggests that Irish prices are undervalued by 15%, not Dublin prices.


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    #11
    HamsterFace
    Closed Accounts Posts: 832 ✭✭✭HamsterFace


    handlemaster wrote:
    Dont think the prices are that bad. You can still get three bed semi s below 200k in dublin. Try that in any other europen capital city.

    I hear this all the time but I never see these houses. Certainly none that don't require a hell of a lot of investment to be any way efficient


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    #12
    Fian
    Registered Users Posts: 2,192 ✭✭✭Fian


    JP 1800 wrote: »
    The rules should be left alone, the problem is not how much you can borrow but how little supply there is. As someone whom plans to buy in the new year I feel that the rules are just fine and I do not need more credit, I need more buying options through supply. I have a whole sense of Deja Vu with the property market at the moment as prices are unsustainable as they are and we are blindly walking into another disaster. We need to remember that interest rates are the lowest they have ever been and a 3 to 4 percentage hike could be disastrous for mortgage holders.

    The rules are impacting on rental costs though. It is harder to finance BTL investments => less supply => higher rents.

    What does the review of the macro prudential rules restricting mortgages have to do with increasing interest rates? If anything more new mortgages increase the number of people who are available to subsidise tracker mortgage holders, sharing the burden with a greater number and so reducing the interest rates required.


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    #13
    thierry14
    Closed Accounts Posts: 1,480 ✭✭✭thierry14


    Market will explode if 10% deposit is increased to 350k

    A lot more people have 35k in savings vs 70k

    Great news for the builders

    All of the 300k new builds in Dublin,Cork, Galway etc only need 30k deposit now


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    #14
    Berserker
    Closed Accounts Posts: 9,046 ✭✭✭Berserker


    JP 1800 wrote: »
    The rules should be left alone, the problem is not how much you can borrow but how little supply there is. As someone whom plans to buy in the new year I feel that the rules are just fine and I do not need more credit, I need more buying options through supply.

    It is going to take years to address the issue of supply.
    handlemaster wrote: »
    Dont think the prices are that bad. You can still get three bed semi s below 200k in dublin. Try that in any other europen capital city.

    I was discussing this claim with an estate agent that I know who operates in North Kildare and Dublin and he told me that such properties tend to be in a serious state of disrepair or there are issues with other families in the area. He knows of three houses on the market for < €220K in West Dublin but all three houses have families with connections to known criminals neighboring them.


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    #15
    Alkers
    Registered Users Posts: 6,833 ✭✭✭Alkers


    Article can't even get the deposit facts right I.e. 10% of the first 220k and 20% of everything thereafter. Either way, were sale agreed so fingers crossed the new measures are in place before we draw down!


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    #16
    purple hands
    Registered Users Posts: 1,070 ✭✭✭purple hands


    handlemaster wrote: »
    Here you go... undervalued by 15 % latest report

    http://m.independent.ie/business/personal-finance/house-prices-to-rise-further-with-easing-of-lending-limits-35234804.html

    That EC report mentioned in the article seems to use data as at end 2015 (with prices continuing to rise in the interim) and also compares prices then with peak prices. Are peak prices really an appropriate benchmark?


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    #17
    Gumbo
    Moderators, Society & Culture Moderators Posts: 39,395 Mod ✭✭✭✭Gumbo


    FTB 220k cap lifted seemly


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    #18
    Sierra Oscar
    Moderators, Category Moderators, Computer Games Moderators, Society & Culture Moderators Posts: 8,500 CMod ✭✭✭✭Sierra Oscar


    They have removed the 20% deposit rule entirely. You now only need 10% on all purchases.


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    #19
    chubbs2011
    Closed Accounts Posts: 31 ✭chubbs2011


    is this for all buyer or just FTB


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    #20
    Sierra Oscar
    Moderators, Category Moderators, Computer Games Moderators, Society & Culture Moderators Posts: 8,500 CMod ✭✭✭✭Sierra Oscar


    chubbs2011 wrote: »
    is this for all buyer or just FTB

    Just for first time buyers.

    Central Bank to remove €220,000 cap for first-time buyers with 10% deposit


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    #21
    Michael D Not Higgins
    Registered Users Posts: 7,223 ✭✭✭Michael D Not Higgins


    Sierra Oscar wrote: »
    Just for first time buyers.

    Central Bank to remove €220,000 cap for first-time buyers with 10% deposit

    This is still speculation. The CBI have not yet published the exact details.

    If it is intended to be altered as such, it has a big impact on the help to buy scheme. Those 300k houses will be able to be bought with only 15k deposit.


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    #22
    RedPandaDan
    Registered Users Posts: 86 ✭✭RedPandaDan


    What a disaster, this is only going to make the property crisis worse.


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    #23
    Michael D Not Higgins
    Registered Users Posts: 7,223 ✭✭✭Michael D Not Higgins


    RedPandaDan wrote: »
    What a disaster, this is only going to make the property crisis worse.

    It's exactly what the government want, more demand for new build houses for FTBs. It gives an extra level of demand to builders to start building more.

    For FTBs of old properties, they still need to qualify for the LTI for a loan. For a 400k house before, they needed 58k deposit plus combined income of 98k. Now they need 40k deposit and 103k income. I doubt that's going to make that much difference.


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    #24
    [Deleted User]
    Posts: 5,121 ✭✭✭ [Deleted User]


    Michael D Not Higgins wrote: »
    This is still speculation. The CBI have not yet published the exact details.

    If it is intended to be altered as such, it has a big impact on the help to buy scheme. Those 300k houses will be able to be bought with only 15k deposit.
    5% effective deposit to be saved by buyer, I think the boom is getting boomer.


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    #25
    uberwolf
    Registered Users Posts: 7,580 ✭✭✭uberwolf


    Michael D Not Higgins wrote: »
    This is still speculation. The CBI have not yet published the exact details.

    If it is intended to be altered as such, it has a big impact on the help to buy scheme. Those 300k houses will be able to be bought with only 15k deposit.

    confirmed as such now


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    #26
    Sierra Oscar
    Moderators, Category Moderators, Computer Games Moderators, Society & Culture Moderators Posts: 8,500 CMod ✭✭✭✭Sierra Oscar


    Michael D Not Higgins wrote: »
    This is still speculation. The CBI have not yet published the exact details.

    If it is intended to be altered as such, it has a big impact on the help to buy scheme. Those 300k houses will be able to be bought with only 15k deposit.

    It's a done deal, media are being briefed on it by officials for the past hour. Formal announcement expected at 2pm.


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    #27
    Michael D Not Higgins
    Registered Users Posts: 7,223 ✭✭✭Michael D Not Higgins


    http://www.centralbank.ie/press-area/press-releases/Pages/OutcomeofReviewofMortgageMeasuresannounced.aspx

    Details here.


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    #28
    ADO
    Registered Users Posts: 227 ✭✭ADO


    Will the whole 3.5 times salary still apply to the above news?


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    #29
    ADO
    Registered Users Posts: 227 ✭✭ADO


    Just saw the above link.


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    #30
    chubbs2011
    Closed Accounts Posts: 31 ✭chubbs2011


    ok, I'm not the smartest when it comes to these things but as a homeowner (mortgage) I would like to move house but finding it hard to come up with the 20% deposit. Is this 20% not stopping a lot of people like me (who have a house but wish to move) from moving house so not allowing these houses on the market?


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    #31
    Michael D Not Higgins
    Registered Users Posts: 7,223 ✭✭✭Michael D Not Higgins


    chubbs2011 wrote: »
    ok, I'm not the smartest when it comes to these things but as a homeowner (mortgage) I would like to move house but finding it hard to come up with the 20% deposit. Is this 20% not stopping a lot of people like me (who have a house but wish to move) from moving house so not allowing these houses on the market?

    Your equity counts towards the deposit.


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