Frontline RTE

Richard tea

Unless I have missed it, im supprised this has not been posted yet.

Skip to 27 mins for the solution suggested from the guy from New beginnings.
http://www.rte.ie/player/#!v=1116366

He suggested that people should pay no more than 35% of their net disposable income on the mortgage. He says that the full amount can be paid back over the full term of the mortgage. It is best you just watch the clip for a break down of the solution.

So my questions are..........Is this a real workable solution? Is it a win win win situation for the bank, government & mortgage holder? What are the Pros & cons of this idea?

GCU Flexible Demeanour

Richard tea wrote: »

What are the Pros & cons of this idea?

I just watched the example of 'Ken's' case.

There's a couple of things they haven't put into place. Firstly, they seem to be talking of 'parking' roughly a third of the mortgage for 10 years without interest accruing. Someone has to cover that interest cost - and, if Ken's case is typical (I'm not saying it is, because I've no idea) the interest cost of parking one third of all or most mortgages would be considerable.

Secondly, they seem to be assuming that incomes will be higher in ten years time - when the full mortgage will be serviced again. That's hardly a safe assumption at present.

So, no, I'd say this idea is pie in the sky. Effectively, its just kicking the can down the road - to use that much-used phrase of the moment. You'd need someone to lend the cash to finance this restructuring. If there were people out there with money willing to refinance Irish property debts on any kind of large scale, we wouldn't have a NAMA.

ei.sdraob

Everyone wins, the taxpayer loses, again

It was hard watching that Frontline without almost breaking the tv, some observations

1. Another quango will be setup (NAMA for the little Guy or something), whatever happened FG/Labs quangocide pledge :rolleyes:

2. The banks cant wait for "mortgage forgiveness" since they can get money then from the taxpayer who can not hand back the keys

3. Gurdiev should be put under spotlight for having a personal and vested interest in this, we all know where listening to vested interests in relation to property has got us in the past.

4. Pat Kenny was hilarious with his "oooh but the little poor lady here got 1 million euro mortgage, where is her nama" :rolleyes:

5. Some in the audience seem to have had their brains sucked out, there is no other explanation for some of the stories.

6. A union of mortgage owners in negative equity is planned, oh goody goody another property related lobby group to whip the government into place :cool:

7. Ronan Lyons was the only sane one asking what is being put in place to prevent this from repeating, with Pat telling him that "ah sure we will never forget", i have a feeling Pat will be quoted on that someday

hmmm

It's like a long term interest only loan, with the capital repaid over a zillion years. I don't understand the point.

The 35% of disposable income idea is also open to a number of obvious abuses. I'll be in the market for Dromoland castle in the morning if this is accepted, and I'll then go on the Dole.

I'm sure they've considered the above, I'll wait till I've read their document.

It's another bailout of the D4 set, but it will be spun as helping "families".