Softening house market?

Oh I'm not suggesting otherwise - i just think the timing of the price release might lead to these houses taking longer to shift than has been the case for previous new builds in the area.

the +2% stress test is currently only required by law for variable rates isn't it? Customers who fix for 5+ year are exempt

But they stress test it differently. They add 2% to variable rates and see if you can afford it. Witha 5 year fixed rates the stress test at that rate. The thinking being that if you are five year into a mortgage before you see higher rates, your income will have increased and you should be able to manage any reasonable increases in Interest rates.

ICS it seems are getting very very strict on their mortgages. Didnt they reduce their income to loan amount to x 2.5?

The banks are no longer being charged by the ECB for deposits. The tracker rates increased automatically so the banks are losing less on them. The banks are hoping if they keep the variable rates down they can lure some tracker customers on to variable or fixed.

Rising interest rates certainly impact all prospective mortgage holders who are the ones who might and do buy property and make the market.

I know that these were July rates but as of then Irish mortgage interest rates for new mortgage lending had fell 0.12% in 12 months.

Along with evidence that banks have not passed on the first ECB rate increase of 0.5% and probably will not pass on the present one of 0.75%. I hinted a few weeks back that this would probably be the vase where banks might not increase the lending rate by the full amount. However a certain amount of economic geniuses could not understand how this could happen. We are probably going to see the ECB rate max out around 3% so any net increase to borrowers may be a bit with 2% in reality which what mortgage's are stress tested to.

That's not my understanding.

Reading various brokers guides, the general rule is that c.1500 euro should be left over for living expenses after the mortgage repayment.

E.g

700 mortgage

1500 living expenses

= 2200 net pay required.

This new ICS rule means that you need to have another 1000 euro left over on top of that.

I.e.

700 mortgage

1500 living expenses

1000 euro extra

= 3200 net pay required.

Bet a lot of them are just waiting for the current budget to pass before they even consider increasing the rate. Assuming they did increase interest rates, they would be under additional scrutiny by the public demanding they tax their profits the same way how energy companies are under the microscope now.

I say wait till after the new year and see if they stick to their word. Bankers ain't your friend that's for sure, one has to be naive to take them at their word!

Myhome gone through the 16k mark

Many are expecting further rate rises and might prefer to do a smaller series of larger increases together rather than having to deal with constant publicity over it,

I went to a new phase launch of an housing project in Adamstown this morning and there was literally only 10 families and as far as I can see everyone was interested in the least expensive buildings that are starting from €460k. I didn't see any end terrace or bigger houses booked on the map when I was there.

The same company had sold the show house with all furnitures and flooring at 360k last summer in the exactly same area.

The bidding war for second hand, well-maintained houses which price range between 350k-420k is still crazy. I've been constantly outbid with a budget of 410k

How can you say there is nothing new in this? The article itself states BoI has not yet revealed what it is doing to tighten its criteria but it is basically imminent. It is impressive that you can state something isn't new or material before the details are even known.

I can not understand why someone would pay 100k above the asking price for a house when we are in the middle of a cost of living crisis