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Deposit Question

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    #32
    Idbatterim
    Registered Users Posts: 17,849 ✭✭✭✭Idbatterim


    undertaxed in this country?! you have to be joking! if you earn anything over 37k you pay over 50% in PAYE, Income Levy, PRSI etc! The higher earner are over taxed, middle earners probably ok and half the workers in the country arent taxed at all! go figure! Also how necessary is the Union membership and VHI? both a bloody waste of money IMHO!


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    #33
    Senna
    Registered Users Posts: 8,800 ✭✭✭Senna


    Jo King wrote: »
    The old system caused no trouble, it prevailed in the time of the 2.5 times annual income loan. It was the later 100% loans with massive salary multiples being lent, that led to all the trouble.

    I though you were on about credit union loans, what are you on about?:confused:


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    #34
    Jo King
    Banned (with Prison Access) Posts: 2,139 ✭✭✭Jo King


    Senna wrote: »
    I though you were on about credit union loans, what are you on about?:confused:

    I have already said that I am not going to describe it because it is of dubious legality. What is illegal about credit union loans?
    The system I am describing depended on an arrangement between the solicitors.


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    #35
    Jinxi
    Closed Accounts Posts: 429 ✭✭Jinxi


    my partner and I are in the same boat. I earn 35,000 a year and he has a commision based job earning 18,000 base salary. It is very frustrating that banks do not take paying rent into account. \if we can afford 650 pm on rent as well as 700 pm in savings then doesn't it make sense we could afford 800 per month mortgage when rent is no longer an outgoing?
    Why then is it so important to have 10%


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    #36
    The_Conductor
    Moderators, Society & Culture Moderators Posts: 32,279 Mod ✭✭✭✭The_Conductor


    Jinxi wrote: »
    my partner and I are in the same boat. I earn 35,000 a year and he has a commision based job earning 18,000 base salary. It is very frustrating that banks do not take paying rent into account. \if we can afford 650 pm on rent as well as 700 pm in savings then doesn't it make sense we could afford 800 per month mortgage when rent is no longer an outgoing?
    Why then is it so important to have 10%

    Because ECB base rates are only 1% at present- and normalisation of rates, which is expected to commence later this year, as inflation is edging upwards in France and Germany- is 4.3%. Irish lending institutions are massively increasing the margins they charge on funds- as their borrowing costs are substantially higher than previous- so you're EUR800 a mortgage could double to EUR1600 a month- as rates increase (more likely it would only go to around 1350- which would reflect a 3% rise).

    Further- banks do not like negative equity- as the asset which is backing their loan to you- is then less than the outstanding amount on the loan. It is prudent business practice to minimise this by incentivising people to have as large a deposit as possible.

    90% mortgages are not common even now- 85% would be normal- and banks are a lot happier with lower than this......

    Times- they are a changin'........


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