Income Multiple Limits on Mortgages

Mongfinder General

andrew wrote: »

There's no indication that that's anything other than an accounting/technical fact. How, in practice, could that affect the independence of the bank?

Well there's the annual dividend paid to the exchequer which you've highlighted already. It's an interesting question in terms of what other functions of the Central Bank could be leaned upon by the Minister of Finance. I think it would very much depend on the motives of the Government of the day. A Sinn Fein led coalition would be all over the Central Bank and Dept of Finance from Day 1. They simply wouldn't give a toss about the ESCB and would pull any domestic lever available to gain as much control as possible.

Any tenuous link could be used. Take Section 114 of the Central Bank Act, 1989, for example. The Minister has a clear say in the revocation of a money broker. Small snippets like this could be manipulated. I suppose in practice future appointees to the Central Bank's Commission is where the real influence could foment. This is where the cloak and dagger comes in handy.

gaius c

Dannyboy83 wrote: »

http://www.independent.ie/business/personal-finance/property-mortgages/first-time-buyers-to-benefit-from-central-bank-uturn-on-20pc-mortgage-deposit-scheme-30728787.html
Was never going to be accepted, altho it was probably a good idea to start at 20%, they should have no problem getting 10% in stone now.

Honohan's speech in full.
http://www.centralbank.ie/press-area/speeches/Pages/HonohanMABSHouseholdIndebtedness.aspx
Markedly different in tone to what the media are reporting.

Dannyboy83

Some interesting stories today

Troika to look at the housing supply issue

http://www.irishtimes.com/business/economy/troika-to-raise-property-market-policies-and-water-debacle-1.1998506
Given the rapid advance in residential property values in Dublin particularly, the troika officials are likely to examine whether sufficient steps are being taken to increase the supply of housing in big urban areas of the State.
Their visit comes amid discord over Central Bank plans to dampen down the property market with new restrictions on mortgage lending. With mortgage debt crisis still unresolved, the visiting officials will take stock of ongoing efforts by the banks to deal with non-performing loans.
As part of this exercise they will scrutinise the development of arrears, banks’ engagement with defaulting borrowers and the flow of repossession cases.

Brian Hayes comments on very high variable rates

http://www.irishtimes.com/business/sectors/financial-services/variable-rates-charged-by-irish-banks-are-a-disgrace-1.1996208?utm_source=lunchtime-digest&utm_medium=email&utm_campaign=digests
Mr Hayes, who is a member of the economic and monetary affairs committee of the European parliament, told a banking conference in Dublin that standard variable rates (SVRs) being charged by Irish banks are too high compared with the rest of the euro zone and called for the Government to explore a solution with the European Central Bank to dilute the impact of loss-making tracker mortgages on their balance sheets.

Despite the overcharge, the Irish Banks are in a league of the own

13/11/2014: Irish Banks: In a Bad League of Their Own
Posted by Dr. Constantin Gurdgiev
Ireland's banking system is faring the worst - by a mile - in the sample. In fact, by S&P measure, it is in the league of its own.
https://www.globalcreditportal.com/ratingsdirect/renderArticle.do?articleId=1368807&SctArtId=278508&from=CM&nsl_code=LIME&sourceObjectId=8903789&sourceRevId=1&fee_ind=N&exp_date=20241111-15:36:58

I'm expecting Irish Variable rates will increase, not decrease...

Mongfinder General

Dannyboy83 wrote: »

Some interesting stories today

Troika to look at the housing supply issue



Brian Hayes comments on very high variable rates


Despite the overcharge, the Irish Banks are in a league of the own


I'm expecting Irish Variable rates will increase, not decrease...

Why?

Larry Wildman

Nah...interest rates are likely to stay low for a long time.

Dannyboy83

Mongfinder General wrote: »

[/B]
Why?

Could be wrong, but it looks like this has the potential for more balance sheet drama:
http://www.independent.ie/business/personal-finance/property-mortgages/thousands-to-take-on-lenders-over-rates-30634246.html
And I assume if it has, then they will follow the precedent set with trackers and just load the cost onto the rest of us.

Larry Wildman wrote: »

Nah...interest rates are likely to stay low for a long time.

ECB rates will, until there is some kind of recovery in Europe I think

gaius c

Dannyboy83 wrote: »

Some interesting stories today

Troika to look at the housing supply issue

Posted this on A&P as well:

Had reason to walk through the Square in Tallaght on Wednesday night around 9pm. I estimate that only a third of the apartments looked occupied but would they think of dropping the price on the other two thirds to get them filled?

That's hundreds of apartments empty when there is a rental crisis in Dublin!

There is so much obvious messing with the market that it'll be blatantly obvious to anybody with an eye in their head that much of the current "scarcity" in the capital is entirely as a result of policy.

djpbarry

gaius c wrote: »

That's hundreds of apartments empty...

According to you?

Larry Wildman

djpbarry wrote: »

According to you?

Very scientific alright...hundreds

gaius c

Yeah, I just made up the apartments facing the street with layers of dust in their windows, no furniture and no lights that are clearly empty.

And I also made up the fact that NAMA are trying to flog 500 of them as social housing.
http://www.irishtimes.com/news/social-affairs/nama-considers-offering-500-apartments-as-social-housing-despite-council-decision-1.1818143

Qualitymark

I certainly see a lot of houses around here empty; one, a huge late-Georgian or early-Victorian redbrick house, south-facing on a gracious square, has been gradually becoming derelict over 20 years or so, and is now causing damage to the rest of the houses on its terrace.
Others are former Corporation houses, which seem to have been bought out by their tenants and through some piece of ill-luck left empty, the curtains rotting behind the windows and the gardens returning to ragwort and wild sycamore, buddleia growing out of the chimneys.
One solution is to seek to have these houses added to the derelict sites list - if this is done, the owner pays a fine of 3% of the house value per year as long as the house is derelict, empty and untenanted.

Dannyboy83

Not sure of present situation, but when I was house hunting last year, I couldn't believe how many empties there were around inner Cork/doughnut effect - due mainly to executor sales