Tag Archives: Central Bank

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Brendan Burgess, founder of askaboutmoney.com

Last year, the Central Bank set down the following rules in regards to obtaining mortgages.

First-time buyers have to have a deposit of 10% on homes valued up to €220,000, and a 20% deposit on any excess over €220,000; other home buyers must have a 20% deposit on the entire amount.

The Central Bank is reviewing these rules and is to hold a press conference on its review this afternoon.

Further to this…

On Today with Seán O’Rourke this morning.

Brendan Burgess, founder of askaboutmoney.com, and Michael Dowling, chairman of the Irish Brokers’ Association mortgage committee, spoke about the rules.

From their discussion.

Brendan Burgess: “The rules are helping first-time buyers if anything and that might sound, that might appear difficult to understand for somebody who’s trying to buy a house but if I’m the only one that can get 100% mortgage, then it’s in my interest to get a 100% mortgage but if we give everybody 100% mortgages, all that will happen is the price will go up. And that’s not good. The vast majority of first-time buyers are responsible and they understand that they need to save money and acquire a deposit. And if you give, what I’d call, you know, the irresponsible borrowers a 100% mortgage, you push the prices up for everybody. There’d be no increase in supply so it just not does not help the overall problem.”

“When I bought my first house and I’m sure it’s the same for you, when you bought your first house, you had to save for a few years, you didn’t get your first job, and just go out, borrow a 100% and buy a house.”

Sean O’Rourke: “The problem was though, or the problem now is, is that people have to spend so much on renting properties that they don’t have anything left to save.”

Burgess: “No, that’s not actually, that’s not true. I mean if you look at the figures. I mean, people say a guard and a nurse can’t buy a house in Dublin. That’s absolute nonsense. A guard and a nurse, without about three years experience, have a combined income between them of about €65,000. Paying rent for an apartment in Dublin and with their living expenses, they would save around €20,000 a year. So, after three years, they would have a deposit of €60,000, that’s with no previous savings, and with no help from parents  or anywhere else. They would save up €60,000 over three years… the point about it is, they would not be able to go out every night of the week, they would not be able to buy coffee on the way in to work or three times a day. They would have to budget, they would have to save. But if they don’t do that, and they’re given a 100% mortgage instead, they’d be scrimping and saving for the rest of their life.”

And what about single folks?

Right so.

Listen back in full here

Central Bank to announce outcome of mortgage rules review (RTE)

UPDATE:

David Murphy, RTÉ’s business editor, reported on News At One that the €220,000 cap on mortgage lending for first-time buyers, who have a deposit of 10%, will be removed in January 2017.

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This afternoon.

Sasko writes;

Construction work taking place at the new headquarters for the Central Bank of Ireland in Dublin’s Docklands today. Glass panelling is installed in the building that was originally intended to be the new headquarters for Anglo Irish Bank, but construction was abandoned following the housing and financial crisis of 2008.

(Sasko Lazarov/Rollingnews)

 

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The winning designs for the 2016 €2 coins to mark the centenary of the Easter Rising.

The winning designs by Emmet Mullins (top) and Michael Guilfoyle (above) feature depictions of the statue of Hibernia, the “historic personification of Ireland”, on top of the GPO in Dublin and lettering from the proclamation rendered in Book of Kells styleee.

FIGHT!

(RollingNews.ie)

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Page 7 of the Central Bank of Ireland’s Residential Mortgage Arrears and Repossessions Statistics: Q4 2014 report, out today

A new report from the Central Bank, detailing figures in relation to Ireland’s residential mortgage arrears and repossessions for the last three months of 2014 is out.

It states the number of overall number of mortgage arrears cases fell by 7,523 over the period, while the number of mortgage arrears cases involving people who’ve been in arrears for over 720 days has risen by 294.

In relation to legal proceedings and repossessions, the Central Bank reports:

“During the fourth quarter of 2014, legal proceedings were issued to enforce the debt/security on a PDH [Private Dwelling House] mortgage in 2,543 cases. Court proceedings concluded in 721 cases during the quarter, and in 314 of these cases the Courts granted an order for repossession or sale of the property.”

“There were 1,393 properties in the banks’ possession at the beginning of the quarter. A total of 429 properties were taken into possession by lenders during the quarter, of which 123 were repossessed on foot of a Court Order, while the remaining 306 were voluntarily surrendered or abandoned. During the quarter 222 properties were disposed of.”

“The number of properties in possession at the end of the quarter was also impacted by reclassification issues affecting 12 PDH accounts. These issues mainly reflect the reclassification of PDH accounts as BTL [Buy To Let] accounts. As a result, lenders were in possession of 1,588 PDH properties at end-December 2014.”

Huh?

Right so.

Residential Mortgage Arrears and Repossessions Statistics: Q4 2014 (Central Bank)

Previously: Meanwhile, In Limerick