Cowen claims aid to buyers will not inflate house prices

jetski

MARK HENNESSY, Political Correspondent, in Galway THE GOVERNMENT will not "artificially inflate" house prices, but will offer help to the lower-paid to get local authority loans, Taoiseach Brian Cowen said yesterday.
Under a plan to go to Cabinet tomorrow, the Housing Finance Agency is to get a line of credit from the National Treasury Management Agency.
The housing agency, which reports to the Department of the Environment, will then be able to use this to boost the sums it has available to fund the purchases of affordable homes. Minister for Finance Brian Lenihan made clear this will not cost the exchequer since the mortgages will have to be paid for at the full rate. The Government insists it is resisting calls by the Construction Industry Federation, banks and others for State action to boost construction.
Speaking to the Fianna Fáil parliamentary party in Galway, Mr Cowen said: "The role of the Government is not to artificially inflate house prices and we will not do so.
"The Government will help those eligible people who have negotiated a good price and wish to purchase a home but are being prevented from doing so due to unreasonable restriction of credit."
Questioned later, Mr Lenihan insisted that extra Housing Finance Agency mortgages would not halt "the necessary correction" taking place in property prices in Ireland.
"That is not an intervention in the mortgage market. It doesn't have any implications for public finances. It is off the balance sheet. We are not talking about interfering in the housing market," he said. Because of the current acute shortage of credit, however, he said: "Certainly, there is some scope at the margins for the Government to provide some element of finance to those who otherwise could not access it."
Making it clear that next month's budget will be painful, the Taoiseach said public spending will not rise "at a rate which the economy cannot afford". However, both he and Mr Lenihan indicated strongly that the budget will contain measures to help Irish industry export more, and do nothing to impede their competitiveness.
The current crisis, Mr Cowen told colleagues in his opening address, "should be seen as bringing about a necessary turning point in the life of the nation.
"This phase in the economic cycle is temporary and will pass. We must remain confident and optimistic about our future," he declared.
Tough decisions will have to be taken next month: "No politician likes doing so but we are not going to try to buy short-term popularity and put at risk all the gains of the past decade," he said.


© 2008 The Irish Times


http://www.irishtimes.com/newspaper/frontpage/2008/0916/1221430255481.html

The_Conductor

In short- they are asserting that a guarantee that everyone will be able to get a mortgage of 300k will not have any impact on house prices. Nice. Why should any seller (developer or otherwise) sell for less than 300k when they know upfront that all purchasers have at least that as a fallback?

bugler

Stop asking such awkward questions! The Taoiseach said it won't inflate house prices, and if we can't trust our Taoiseach...

jetski

well it depends really on what being sold i suppose....

300k isnt alot if your getting a decent 3 bed house IMO

not a scrappy little 1-2 bed

The_Conductor

jetski wrote: »

well it depends really on what being sold i suppose....

300k isnt alot if your getting a decent 3 bed house IMO

not a scrappy little 1-2 bed

Its an excellent way to establish a lower threshold for offloading crap 2 bed apartment units onto the market before the rules regarding size, energy efficiency etc are changed next January. It will encourage those who have been on the sidelines to grab whatever is going- "to get a foot on the ladder", once again. Its also definitely not prudent to put knowledge of people's available finances in the open- look at the scandal of the estate agents and solicitors who were sharing information which is to come up shortly.

jetski

i thought it was between EA's and mortgage advisors?

I was of the opinion that if new measures were being introduced to give access of credit to time buyers it wouldn’t be straight away?

Ste.phen

Would delaying it a few months make it any less wrong?

punchestown

jetski wrote: »

well it depends really on what being sold i suppose....

300k isnt alot if your getting a decent 3 bed house IMO

not a scrappy little 1-2 bed

300k is a lot of money full stop. Part of the problem of the bubble has been people losing sight of the value of money and with banks throwing money at people through the bubble years, the amount to be repaid did not hit home with people.

Firetrap

What's confusing me is how anyone expects the "lower paid" to afford repayments on a 300k mortgage. The banks aren't loaning these people that sort of money at present for a very simple reason - they don't believe they can pay the money back. And after checking out what you'd be repaying on a mortgage of that sort of money, I don't blame them.

Also, what is low pay considered to be?

jetski

minimum wage or there abouts.....

The_Conductor

I think they define low pay as below the "average industrial wage" which in turn they define as ~36/37k (which in all honesty is not that low paid?)

The purely interest component of a 300k mortgage @ current rates works out at about EUR1,560 per month- which by my calculation would consume just over 60% of the net income of someone on the average industrial wage.

Perhaps the government plans on offering a new social welfare payment, akin to rent-allowance, to make the mortgage repayments affordable?

jetski

smccarrick wrote: »

The purely interest component of a 300k mortgage @ current rates works out at about EUR1,560 per month- which by my calculation would consume just over 60% of the net income of someone on the average industrial wage.

Over how long and what about mortgage relief

Firetrap

I just tapped in a couple of figures into the mortgage calculator at mortgages.ie. My theoretical first time buyer couple is borrowing €300k over 30 years. I didn't specify any other criteria like the sort of mortgage or anything like that.

The site gave me a mortgage with an APR of 5.6% and repayments of over €1,700 a month. I assume tax relief is built into those figures. Even if it isn't, it's still not going to take the sting out of making monthly repayments like that.

jetski

tax relief depends on the individual or couple and id be fairly certin its not deducted. you might be talking around about €250 less

Firetrap

It's still a lot of money if you're not earning large wages, is it not?

Dirk Gently

jetski wrote: »

we are not going to try to buy short-term popularity and put at risk all the gains of the past decade," he said.

of course not, there's no general election due for a few of years.

Firetrap

No but there's the not insubstantial issue of the local elections.

ronbyrne2005

Cowen may be right in saying this proposal won't inflate prices but it might also stop them falling as low as they would if he doesnt intervene. For example ,theoretically a house that sold for 400k in 2006 now asking for 300k may sell at 300k under new deal but may have fallen to 200/250k if this initiative was not implemented. It's semantics making a builder bailout seem more acceptable.

The propertypin are organising a protest outside Dail against a builder bailout next week if anyones interested in saving their hard earned taxes from bailing out "friends of Fianna Fail" aka the big builders/developers.

utick

anyone know what these unreasonable credit restrictions cowen is talking about? (are they really unreasonable or just not ridiculously easy as they used to be)

about a month ago i was kinda looking around fl, and was offered interest rate of 6% was thinking of putting money down but she was trying to convince me not to put money down, credit still seems to easy this market is going to have to fall alot more in my opinion

20goto10

Firetrap wrote: »

I just tapped in a couple of figures into the mortgage calculator at mortgages.ie. My theoretical first time buyer couple is borrowing €300k over 30 years. I didn't specify any other criteria like the sort of mortgage or anything like that.

The site gave me a mortgage with an APR of 5.6% and repayments of over €1,700 a month. I assume tax relief is built into those figures. Even if it isn't, it's still not going to take the sting out of making monthly repayments like that.

This is a common agrument which quite simply is not an argument at all. Someone earning 37K has a monthly take home pay of €2,580. Therefore they can afford a €1700 mortgage and have room for increases (Did you include the €169 interest relief in that?). And thats based on a 30 year mortgage. Base your figures on a 35 year mortgage and there's even more room for increases in rates. You don't really have an argument here. I know people are going to say the left over €850 a month is not enough to live off but I disagree. Are you going to be able to afford all the luxuries Irish people have come to expect over the past 10 years? No. But you can afford a mortgage and a decent life.

Banks are overly strict. This is not a correction in mortgage lending criteria, its an abnormal tightening that will eventually ease rather than become the way of the future.

SimpleSam06

20goto10 wrote: »

I know people are going to say the left over €850 a month is not enough to live off but I disagree.

Heating oil? Electricity? Children? Insurance? Car fuel and maintenance? Pension? Phone bills? The odd pint? Tax increases? Rate rises? Commuting costs?

Two hundred euros a week is around what you'd get on the dole.

DublinDilbert

SimpleSam06 wrote: »

Two hundred euros a week is around what you'd get on the dole.

+1

Except on the dole you'll also get a medical card, a roof over your head and money to furnish the house!

SlyRax

I agree, €1700 is perfectly acceptable for someone on 37k. IMHO 37k is a lot of money. Cut back on holidays for a couple of years, don't go the pub every weekend. This is what the previous generation did, why can't we.

Back on topic though, I think the government has to be seen to be doing something. I agree with Cowen that the government should let prices continue to drop. Hard to know if this will mean people can buy when they previously couldn't or whether we'll end up with a minumum price on everything. I'm buying my first home at the moment and I don't really mind if it drops in price because it is my dream home. Plus I'm not going anywhere for the next ten years so I see it as a very long term investment rather than looking to make a couple of hundred grand.

SlyRax

Very true when you add kids into the equation it's not a lot of money. Its supposed to be hard to buy a house though isn't it, especially for the first couple of years anyway. heating and elec could get down to 100 each a month, thats 100 for each person for both heating and electricity, or is that unreasonable. Lidl for groceries is for nothing, well you know what I mean. Phone bill, get meteor phones and call each other for free, anything outside that is a luxury. Car costs are atough one but if possible you could downsize and go with a diesel with good mpg. I can't see the government letting any body rase the price of electricity or gas, although I could be wrong. Also, TV licence, UPC, savings. Remember thats €850 a month each for our theoretical couple, which is 1700 a month to take all the extra bills from. I think you could be left with 50 a week socialising money each if you manage it right??????? You gotta do what you gotta do, affordable housing is always an option.

20goto10

SimpleSam06 wrote: »

Heating oil? Electricity? Children? Insurance? Car fuel and maintenance? Pension? Phone bills? The odd pint? Tax increases? Rate rises? Commuting costs?

Two hundred euros a week is around what you'd get on the dole.

The real figure is about €1020 including TRS. If you cannot live off €1020 a month then yes fair enough you cannot afford a mortgage. Pity for you. Its always tough to start with and as you earn more you get more money in your pocket. Its the way of the world. I feel for people who cannot get onto the ladder and its great to see more and more people being able to afford as prices come down. However I do not feel for people who cannot cut down on their extravagant lifestyle in order to do so. Fact of the matter is those kind of people will never own a home. They're simply not responsible enough and its got nothing to do with house prices.

SimpleSam06

20goto10 wrote: »

The real figure is about €1020 including TRS. If you cannot live off €1020 a month then yes fair enough you cannot afford a mortgage. Pity for you.

Thats €250 a week, with the fifty quid shortfall from social welfare levels more than made up as DublinDilbert pointed out. Thats a hard, hand to mouth existence for years and years to come. Why would anyone do that to themselves when they can sit it out and save massive amounts of money without committing themselves to an overinflated loan to line the pockets of bankers and builders? Maybe some people enjoy working for most of their life, coming home to poverty and subsistence level lifestyles, just to put a roof over their head, but really, it seems pretty stupid to me.

SlyRax

if your saving you should be saving the price of that morgage anyway, where do you live while your saving?? paying rent?? still paying all those bills anyway??. it all comes down to personal circumstances and personal choices I suppose.

If your living at home with your parents and not paying any rent, then go for it save save save but you need to be saving 1500 or more a month anyway. if you already have a house good for you this isn't applicable. If your on the dole, not applicable. If your renting with kids at the mo this is good as your better of buying than renting.

Hard to call, but there aren't many situations where (if you seriusly want a house) you would be much better off than taking the hit for a couple of years

20goto10

SimpleSam06 wrote: »

Thats €250 a week, with the fifty quid shortfall from social welfare levels more than made up as DublinDilbert pointed out. Thats a hard, hand to mouth existence for years and years to come. Why would anyone do that to themselves when they can sit it out and save massive amounts of money without committing themselves to an overinflated loan to line the pockets of bankers and builders? Maybe some people enjoy working for most of their life, coming home to poverty and subsistence level lifestyles, just to put a roof over their head, but really, it seems pretty stupid to me.

I'm not arguing whether its a smart move to buy a home now or wait it out for prices to fall further. I'm saying this argument that a 300K mortgage is unaffordable to the average person is nonsense if you cinsider 37K to be the average. Its simply non factual. I live off a budget and keep track of all mine and my wifes spendings and €1020 is ample money. We live off €800 a month between us. Thats for all household bills and food and also includes petrol costs for driving 42km round trip to work 5 days a week for me and a weekly LUAS ticket for the wife. €800 a month is what I would call our day to day living expenses.

Besides that, if you are on 37K and are not happy to live off a tight budget then maybe you should go for something cheaper or wait for prices to fall further as SimpleSam would do. But again, its not because you cannot afford the 300K mortgage. You choose not to make the sacrifices in order to afford it. There's a big difference and to me its not a valid argument in the affordability debate.

sadie9

20goto10 wrote: »

I'm not arguing whether its a smart move to buy a home now or wait it out for prices to fall further. I'm saying this argument that a 300K mortgage is unaffordable to the average person is nonsense if you cinsider 37K to be the average. Its simply non factual. I live off a budget and keep track of all mine and my wifes spendings and €1020 is ample money. We live off €800 a month between us. QUOTE]

I can't believe what I'm hearing! How would a couple earning 37k in total qualify for a mortgage of 300k??? If they had kids their budget would be shot completely. We are a family of 4 (2 adults, 2 kids) on one income earning 35k. We were offered a mortgage of 180k Max. Our weekly food bill is 150, and that's a cheap week. There is a huge problem here with couples getting massive mortgages for their double incomes, then baby comes along and you either have up to 1k a month in creche fees added or one person gives up their income to stay at home.

SimpleSam06

SlyRax wrote: »

if your saving you should be saving the price of that morgage anyway, where do you live while your saving?? paying rent?? still paying all those bills anyway??.

Its worth pointing out that the interest portion on a mortgage is still usually significantly larger than paying rent in the same place, except you aren't locked into a lifetime agreement. If you save while paying rent you are ultimately reducing the interest payments while prices are dropping.

SlyRax wrote: »

Hard to call, but there aren't many situations where (if you seriusly want a house) you would be much better off than taking the hit for a couple of years

This is wildly incorrect. With prices already down at least 15% from peak and another 10% off for the asking, you will save six figures over the lifetime of a mortgage by holding out for a few years and saving.

20goto10 wrote: »

I'm saying this argument that a 300K mortgage is unaffordable to the average person is nonsense if you cinsider 37K to be the average.

37k is not the average nor is it even the median, which I would call a more important number.

20goto10 wrote: »

Its simply non factual. I live off a budget and keep track of all mine and my wifes spendings and €1020 is ample money. We live off €800 a month between us. Thats for all household bills and food and also includes petrol costs for driving 42km round trip to work 5 days a week for me and a weekly LUAS ticket for the wife. €800 a month is what I would call our day to day living expenses.

Right. And if interest rates rise half a percent, or if she gets pregnant, what will you sacrifice then?

20goto10 wrote: »

But again, its not because you cannot afford the 300K mortgage. You choose not to make the sacrifices in order to afford it. There's a big difference and to me its not a valid argument in the affordability debate.

What affordability debate? If you are content not to get value for money, then sure, buy in a collapsing market. A box of matches might be affordable at €50, but I'd be an idiot to pay it.

20goto10

sadie9 wrote: »

I can't believe what I'm hearing! How would a couple earning 37k in total qualify for a mortgage of 300k???

I already gave the figures. I never said it was for a family of 4.

If you want to have kids you need to factor that in to the equation. It may or may not push you out of the realms of affordability. Most people will wait a few years to have kids when its more affordable.

20goto10

SimpleSam06 wrote: »

Right. And if interest rates rise half a percent, or if she gets pregnant, what will you sacrifice then?

There's plenty of room for a kid or interest rate rises or in the figures I gave. But if you want to factor kids into it go ahead. It still does not mean that a person earning 37K cannot afford the mortgage.

SimpleSam06 wrote: »

What affordability debate? If you are content not to get value for money, then sure, buy in a collapsing market. A box of matches might be affordable at €50, but I'd be an idiot to pay it.

So affordabilty is not an issue with you? so we are agreed that someone earning 37K can afford a 300K mortgage? Thats good, I'm glad we're agreed on that because that is my only gripe on this thread. Whether its value for money or better to wait for prices to drop further is not something I want to debate.

SimpleSam06

20goto10 wrote: »

So affordabilty is not an issue with you? so we are agreed that someone earning 37K can afford a 300K mortgage? Thats good, I'm glad we're agreed on that because that is my only gripe on this thread. Whether its value for money or better to wait for prices to drop further is not something I want to debate.

Somebody doing that is living right on the ragged edge, and is only a couple of missed paycheques away from ruin. Can it be done? Yes. Is it a really, really bad idea? Most definetely yes.

20goto10

SimpleSam06 wrote: »

Somebody doing that is living right on the ragged edge, and is only a couple of missed paycheques away from ruin. Can it be done? Yes. Is it a really, really bad idea? Most definetely yes.

Living off your expenses maybe. Working off my expenses there's plenty of room for maneuverability and saving for a rainy day. Factor in pay rises and it should only take 1 year before you're at a very comfortable level and getting increasingly more comfortable as the years roll by. Thats life.

SimpleSam06

20goto10 wrote: »

Living off your expenses maybe. Working off my expenses there's plenty of room for maneuverability and saving for a rainy day. Factor in pay rises and it should only take 1 year before you're at a very comfortable level and getting increasingly more comfortable as the years roll by. Thats life.

Heh. To be honest we have no idea what your expenses are, or whether or not you are who you say you are. This being the internet, you could represent any one of a number of people. However, even taking it at face value, the simple, crystal clear fact of the matter is that given your sums, you would essentially be pulling down less than social welfare. Thats not a lifestyle anyone sane should aspire to.

As for pay rises, good luck with that in the current economic climate. But as you say, thats life.

20goto10

SimpleSam06 wrote: »

Heh. To be honest we have no idea what your expenses are

wtf?

SimpleSam06 wrote: »

, or whether or not you are who you say you are. This being the internet, you could represent any one of a number of people.

Again, wtf?

SimpleSam06 wrote: »

However, even taking it at face value, the simple, crystal clear fact of the matter is that given your sums, you would essentially be pulling down less than social welfare. Thats not a lifestyle anyone sane should aspire to.

Someone on the dole earns more that 37K? Seriously? I don't know about that one now :rolleyes:

You seem very bitter about something. Good luck in your endeavor.

gurramok

20goto10 wrote: »

This is a common agrument which quite simply is not an argument at all. Someone earning 37K has a monthly take home pay of €2,580. Therefore they can afford a €1700 mortgage and have room for increases (Did you include the €169 interest relief in that?). And thats based on a 30 year mortgage. Base your figures on a 35 year mortgage and there's even more room for increases in rates. You don't really have an argument here. I know people are going to say the left over €850 a month is not enough to live off but I disagree. Are you going to be able to afford all the luxuries Irish people have come to expect over the past 10 years? No. But you can afford a mortgage and a decent life.

So you advocate a person on 37k forking out 66% of their net wage before any expenses on a 300k mortgage which is about 8 times their salary!

Welcome to sub-prime Ireland.

The 169 tax relief is not guaranteed, its based on how much interest in paid.

And by the way, 37k is not an average. If you had trawled through previous threads on this, we found out that 67% of the workforce earn UNDER 35k a year.

SimpleSam06

20goto10 wrote: »

Someone on the dole earns more that 37K? Seriously? I don't know about that one now :rolleyes:

They would probably be in a better position than someone up to their necks in a mortgage.

I mean, they can always get off the dole.

20goto10 wrote: »

You seem very bitter about something. Good luck in your endeavor.

Actually it will be the extremely large amounts of tax that my endeavours pay towards the running of the country that will be used to bail out overextended idiots, whether I want them to or not, so yes, you might say I am a bit irritated about that.

20goto10

gurramok wrote: »

So you advocate a person on 37k forking out 66% of their net wage before any expenses on a 300k mortgage which is about 8 times their salary!

Welcome to sub-prime Ireland.

The 169 tax relief is not guaranteed, its based on how much interest in paid.

And by the way, 37k is not an average. If you had trawled through previous threads on this, we found out that 67% of the workforce earn UNDER 35k a year.

It wasn't me who said 37K was the average. But yes my figures are based on 37K and my own personal expenses. I could afford a 300K mortgage on a salary of 37K. If you can't then thats a pity for you. Good luck to you all.

gurramok

20goto10 wrote: »

It wasn't me who said 37K was the average. But yes my figures are based on 37K and my own personal expenses. I could afford a 300K mortgage on a salary of 37K. If you can't then thats a pity for you. Good luck to you all.

At least we know your position on this, its more than sub-prime!

Hands up who will fork out 2/3 of their monthly salary on a mortgage 8 times their income?

20goto10

gurramok wrote: »

If you had trawled through previous threads on this.....

Thanks for the advice. I now know who I'm arguing with, or more accurately I now know who is arguing with me and why.

When people suggest you can spend that much on a mortgage and have as much as you get on the dole left over to spend I really have to question their motivations for posting.

Are you party hacks?
Are you developers?
Are you bankers?
Are you a property specu-vestor?

Why on earth would you cheer lead this madness otherwise:rolleyes:

:mad:

Climate Expert

People like 20got10 need to be protected from themselves. Thats what the banks do by not lending someboy 60-70% of their take home on a mortgage.

ronbyrne2005

No bank or financial expert would recommend a repayment of 66% of net income on a mortgage. They recomend a high of 38% of groos income I think. Who wants to be eating sh1t quality food for years, not go on holidays/trips, not go out socialising etc for years to own a rapidly depreciating asset? Then you have management fees, house insurance, repairs and maintenence and other costs of ownership that your landlord pays if you rent.
If you have to spend 66% of your income on a mortgage you have too large a mortgage for someone near average industrial wage unless you are content sitting at home eating tins of beans for years and years with the value of your property collapsing around ya.

KhanTheMan

20goto10 wrote: »

LEt me showe you the maths.

1 person earning 37K -> take home pay of €2580 p.m
I live off €800 p.m for 2 people. So €400 p.m for 1 person on day to day expenditure.
A mortgage of 1700 - 169 TRS = mortage of €1531

€2580 - €1531 = €1049 spending money. To do what you please. Save for a rainy day, have a baby, repair your car, whatever. Need more on your day to day expenditure? Theres room for that too.

I suppose for the children of the celtic tiger that is measly pocket money :rolleyes: How much is a bag of cocaine these days?

Thread is a lost cause. Anyone can do their own maths for their own personal finances and if they can't someone can do it for them.

I can see where you're coming from but do you not think its a little tight even if affordable.

Now if we were to take into account that the day of single people buying houses on their own as the norm are gone forever and that the large majority of house buyers are couples these days then your argument would work out very well.

Say a couple on 37k each get a mortgage of 300k then they could live off one salary by your estimation and save the rest or spend as they like. Seems a lot more feasable as an argument for affordability to me. And quite a comfortable situation for them as opposed to scraping by on the one salary. They would be taking home over €5000 a month and get double the mortgage interest relief.

flatpack

i m not backing up here but
i m a living example of 37k, honestly its not easy to manage every thing but my mortgage is not 300k its 275 for 35 years

Mortgage 1190
Mortgage Protection 33/month
Personal Loan 508.6
ESB Bill average 50/month (i only use energy savers no monkey business)
GAS average 60/month
HFC Credit 57/month (ending very soon)
HFC Loan 162/month (already saved enough to close it in next two months)
Credit Card Bill 200/month
Bin Charges 20/month
Travel Charges 150/month
Broadband 37.99/month
Car Expense 125/months (i drive small polo just for shopping)

in total its 2533
i had house insurance but then i stop i might get insurance back but not yet as i m waiting for HFC loan to pay off.
i dont smoke & dont drink i know some one might think what is the point to buy house but i m happy i have my own place dont want to live in box and pay some one else's mortgage and i have happy life.

(All figures are from updated from my account if any one need any prof i can take screen shots) then i m left with 466 to live. and i took some money from my credit card coz i lost my contract and had no choice to save myself and house for full three months and i m still on contract and its very risky but life its self is very risky.
i can not say anything more here but good luck for those who are on waiting list for price drop...
(sorry for my bad english)

Climate Expert

flatpack wrote: »

i m not backing up here but
i m a living example of 37k, honestly its not easy to manage every thing but my mortgage is not 300k its 275 for 35 years

Mortgage 1190
Mortgage Protection 33/month
Personal Loan 508.6
ESB Bill average 50/month (i only use energy savers no monkey business)
GAS average 60/month
HFC Credit 57/month (ending very soon)
HFC Loan 162/month (already saved enough to close it in next two months)
Credit Card Bill 200/month
Bin Charges 20/month
Travel Charges 150/month
Broadband 37.99/month
Car Expense 125/months (i drive small polo just for shopping)

in total its 2533
i had house insurance but then i stop i might get insurance back but not yet as i m waiting for HFC loan to pay off.
i dont smoke & dont drink i know some one might think what is the point to buy house but i m happy i have my own place dont want to live in box and pay some one else's mortgage and i have happy life.

(All figures are from updated from my account if any one need any prof i can take screen shots) then i m left with 466 to live. and i took some money from my credit card coz i lost my contract and had no choice to save myself and house for full three months and i m still on contract and its very risky but life its self is very risky.
i can not say anything more here but good luck for those who are on waiting list for price drop...
(sorry for my bad english)

You spend €2150 a month on credit?

punchestown

Are you the same flatpack who posted the following recently?

---

'well i lost my job in march and i already spend all my saving in these two months so i have only few hundereds in my account and i can not afford to pay even one payment untill i get some job but what should i say to bank i have mortgage with tsb do u think they can give me break for a while? and what i simpley say i can not afford? and would they take home and sell it and if it goes for less then i have to pay balance?'

Jesus wept!

ronbyrne2005

punchestown wrote: »

Are you the same flatpack who posted the following recently?

---

'well i lost my job in march and i already spend all my saving in these two months so i have only few hundereds in my account and i can not afford to pay even one payment untill i get some job but what should i say to bank i have mortgage with tsb do u think they can give me break for a while? and what i simpley say i can not afford? and would they take home and sell it and if it goes for less then i have to pay balance?'

Jesus wept!

:pac:

Climate Expert

but i m happy i have my own place dont want to live in box and pay some one else's mortgage and i have happy life.

jesus wept indeed. So you were a whisker away from losing your home, bankruptcy and all over financial disaster. Yeah you're the smart one for not paying somebody elses mortgage.

gurramok

nipplenuts wrote: »

What exactly do you mean when you say Sub-prime? You call it several times.

Dictionary.com provides the following definitions for subprime:

1. being of less than top quality.

2. being below a prime rate.

Ok, pedantics. I had meant sub-prime style.

What the poster is endorsing is a 66% outgoings on a mortgage with the remaining 33% to live on.
Then we had the extraordinary similarity of the 33%(800) to the monthy dole money(800). It's like a ninja (no income no job) scenario but instead its the borrower working as a slave to the bank for 30 years.


flatpack, those non-mortgage loans are killing you. You do not say what interest rate you are on and term for that mortgage.

Ask yourself one thing, are you going to be struggling for the whole 35yr term with a living on bread and water scenario?