Central bank mortgage lending rate changes

dzwx

So it's only who can't / won't / don't save being awarded?
What about those who save like crazy and are affected by lti rule?
I've managed to gather around 50k by saving selling etc like mad man and at the same time I'm affected by lti rule (big commission based job)
Nothing to help me I guess

D9Male

appfry wrote: »

Single applicants are soon to be an extinct breed.
That road to extinction started the minute the powers that be decided to apply ongoing pressure to have both halves of a couple out at work.

Now single applicants just cant compete with double incomes.

Yeah this seems to have been done by stealth. Now all the incentives are to get people "back to the workforce".

So many couples are now working twice as much to fund living in the same areas as before.

I find it difficult to believe that our society or are children are going to benefit from this in the medium term. More of us are working longer hours to get by.

Cuddlesworth

Paul_Mc1988 wrote: »

Currently combined income of 97K so shouldn't be too much hassle;)

It looks like you need a additional 20.5k to your savings or getting an exemption to the LTI.

mahoganygas

dzwx wrote:

So it's only who can't / won't / don't save being awarded? What about those who save like crazy and are affected by lti rule?

The flip side of that is what about those who got a 100k gift from mummy and daddy, but have a low income job? They are a huge risk to banks.

Unfortunately the rules can't cater for all eventualities and are to be used as a guideline for banks. Hence the exceptions rule.

Klonker

This is obviously to help people paying high rents in Dublin and can't save a large deposit because of this which can only be a good thing. The LTI limits will still stop anyway getting in over their heads with mortgages. My guess is they will push out the LTI at review next year to 4 times salary, laxing the requirements incrementally.

I still don't really understand why supply is so low, what is stopping developers from building housing units in Dublin/commuter areas? Is it not financially worth it even with the large price increases the last few years?

super_furry

I'm no expert at all when it comes to the property market but it seems to me that if they want to slow the rise of house prices and help first time buyers, wouldn't a moratorium on big property owners/landlords work? Say for example that for the next two years, if you already own four or more properties, you can't buy another.

LegallyAbroad

appfry wrote: »

Single applicants are soon to be an extinct breed.
That road to extinction started the minute the powers that be decided to apply ongoing pressure to have both halves of a couple out at work.

Now single applicants just cant compete with double incomes.

How or why would a single income applicant expect to compete with a double income?

Cuddlesworth

mahoganygas wrote: »

The flip side of that is what about those who got a 100k gift from mummy and daddy, but have a low income job? They are a huge risk to banks.

Unfortunately the rules can't cater for all eventualities and are to be used as a guideline for banks. Hence the exceptions rule.

This only seems to make a huge deal to high income dual earners paying lots of rent with slow savings. Everybody else will be capped by their LTV, like they were before.

LegallyAbroad

Cuddlesworth wrote: »

This only seems to make a huge deal to high income dual earners paying lots of rent with slow savings. Everybody else will be capped by their LTV, like they were before.

High income dual earners are also capped by their LTV?

pilly

LegallyAbroad wrote: »

How or why would a single income applicant expect to compete with a double income?

I know what you mean. But I also get the point that it does appear hopeless at the moment in this country for anyone who's not in a couple. Can't buy and can't afford rent either. Not a nice situation to be in.

mahoganygas

super_furry wrote:

I'm no expert at all when it comes to the property market but it seems to me that if they want to slow the rise of house prices and help first time buyers, wouldn't a moratorium on big property owners/landlords work? Say for example that for the next two years, if you already own four or more properties, you can't buy another.

A lot of landlords own four or more properties. Like it or not, they are on integral part of the rental market.

Also, at the moment there is no great desire to slow price rises. There are a lot of people 'trapped' in negativity equity who welcome it.

LegallyAbroad

pilly wrote: »

I know what you mean. But I also get the point that it does appear hopeless at the moment in this country for anyone who's not in a couple. Can't buy and can't afford rent either. Not a nice situation to be in.

Agreed. It's expensive being single. But, I suppose, society has always been designed with couples/families in mind.

dzwx

Cuddlesworth wrote: »

This only seems to make a huge deal to high income dual earners paying lots of rent with slow savings. Everybody else will be capped by their LTV, like they were before.

Usually high income dual earners don't have a problem paying rent and save

listermint

mahoganygas wrote: »

A lot of landlords own four or more properties. Like it or not, they are on integral part of the rental market.

Also, at the moment there is no great desire to slow price rises. There are a lot of people 'trapped' in negativity equity who welcome it.

they'd be equally priced out of the change market. So.... ya know swings and roundabouts.

thierry14

Klonker wrote: »

This is obviously to help people paying high rents in Dublin and can't save a large deposit because of this which can only be a good thing. The LTI limits will still stop anyway getting in over their heads with mortgages. My guess is they will push out the LTI at review next year to 4 times salary, laxing the requirements incrementally.

I still don't really understand why supply is so low, what is stopping developers from building housing units in Dublin/commuter areas? Is it not financially worth it even with the large price increases the last few years?

Plenty of houses for sale

28k across the country

It's just people can't get a mortgage

Supply issue alright with renting as people can't buy

Once they start buying like in the boom rental crisis is over

Has to be a balance

No balance now

Claw Hammer

thierry14 wrote: »

Plenty of houses for sale

28k across the country

There are very few houses for sale where people want to live. In the main cities and towns.

thierry14 wrote: »

It's just people can't get a mortgage

There are many mortgage approved people who cant find a house to buy so availability of mortgages is not the problem. It is lack of houses.

[/QUOTE]

thierry14

Claw Hammer wrote: »

There are very few houses for sale where people want to live. In the main cities and towns.


There are many mortgage approved people who cant find a house to buy so availability of mortgages is not the problem. It is lack of houses.

[/quote]

Majority are not picky

If they could get a mortgage they would buy

History tells us that

listermint

thierry14 wrote: »

Plenty of houses for sale

28k across the country

It's just people can't get a mortgage

Supply issue alright with renting as people can't buy

Once they start buying like in the boom rental crisis is over

Has to be a balance

No balance now

Also balance entails the supply is increased, needing 20k houses per year and getting 5-8 isnt workable.


Is increasing house prices over stretching people again into big credit mortgages the only option... the government seems to think so.

Or hey maybe address the costs...

This whole thing is taking real money out of the economy not to mention the big pensions elephant.

We cant keep thinking that lashing house prices up is the solution to all our problems. Its ridiculous.

Claw Hammer

thierry14 wrote: »

Majority are not picky

If they could get a mortgage they would buy

History tells us that

Why do people with mortgage approval living and working in Dublin not buy properties in places such as Longford, offaly or Laois for example. Is it pickiness?

Butters1979

thierry14 wrote: »

Plenty of houses for sale

28k across the country

How many inside centres of employment

thierry14

Claw Hammer wrote: »

Why do people with mortgage approval living and working in Dublin not buy properties in places such as Longford, offaly or Laois for example. Is it pickiness?

Loads of new builds in D15, Swords, Cherrywood etc

Huge estates going up all over the place

Plenty of old stock too

What areas besides city centre are low on stock?

pilly

thierry14 wrote: »

Loads of new builds in D15, Swords, Cherrywood etc

Huge estates going up all over the place

Plenty of old stock too

What areas besides city centre are low on stock?

I agree, I think there are plenty of new houses around.

Earleybird

Claw Hammer wrote: »

Why do people with mortgage approval living and working in Dublin not buy properties in places such as Longford, offaly or Laois for example. Is it pickiness?

Probably because then they'd have to live in Longford, Offaly or Laois.

Claw Hammer

thierry14 wrote: »

Loads of new builds in D15, Swords, Cherrywood etc

Huge estates going up all over the place

Plenty of old stock too

What areas besides city centre are low on stock?

So these estate are going up and nobody is buying? There are no mortgage approved buyers turning up to showhouses. Why are the developers such idiots?

Michael D Not Higgins

There was a post earlier in the month here where at least 8 sets of people were queuing up to buy 3 days before they went on sale.

Earleybird

Claw Hammer wrote: »

So these estate are going up and nobody is buying? There are no mortgage approved buyers turning up to showhouses. Why are the developers such idiots?

What planet are you living on!? There have been a number of stories of new developments sold out on launch day, queues to get a house etc.

Daisy78

LegallyAbroad wrote: »

Agreed. It's expensive being single. But, I suppose, society has always been designed with couples/families in mind.

This is a disaster for single income earners. Double incomes with 10% savings will dictate the market now. Was planning on applying in the new year but not so optimistic now, with the earnings requirement still capped it makes it impossible to buy.

appfry

D9Male wrote: »

Yeah this seems to have been done by stealth. Now all the incentives are to get people "back to the workforce".

So many couples are now working twice as much to fund living in the same areas as before.

I find it difficult to believe that our society or are children are going to benefit from this in the medium term. More of us are working longer hours to get by.

What would easily bring costs down is some sort of rule that there is one job per household. Or maybe a max income or ....

Of course I can already think of so many holes in that idea its not a runner.
God knows what can be done, but forcing both halves of a couple to go to work even if they have kids was a serious problem.

appfry

LegallyAbroad wrote: »

How or why would a single income applicant expect to compete with a double income?

They wouldnt. Absolutely no point even trying anymore.

Claw Hammer

Earleybird wrote: »

What planet are you living on!? There have been a number of stories of new developments sold out on launch day, queues to get a house etc.

Read my post in context. it has been claimed by another poster that houses are not been bought because people can't get mortgages. That is clearly nonsense.