L’istituto di credito ipotecario Núa Money consentirà agli acquirenti che acquistano per la prima volta di prendere in prestito fino a cinque volte il loro reddito
https://www.independent.ie/business/money/mortgage-shake-up-as-buyers-can-borrow-five-times-income/a1468347405.html
di B8_B8_B8
31 commenti
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I honestly don’t even know what to make of this. On one hand people are struggling to reach the high prices and on the other this seems very like encouraging Celtic Tiger practices and a new generation of negative equity
THE CELTIC TIGER IS ALIVE!
Was this not regulated against? Or, am I missing something?
But I thought the 4x your income or whatever it is now was a central bank rule?
Are mortgage repayments at that much even affordable considering it’s based on income
Happens in aus, this move just makes properties more expensive
One of the most expensive lenders wants to give people a load of extra money to straddle them with debt.. it honestly should not be allowed. We don’t need larger mortgages, we need less external investment in housing Irish people need and we need more houses. This just straddles more debt on Irish people
Wow! What a new innovative idea! I wonder is the CEO or shareholders of this new company related to anyone connected to the upper echelons of Irish society!
Sorry, I don’t have an Indo subscription. How can this happen when the Central Bank’s rules limit the maximum amount someone can borrow to four times your gross annual income if you’re a first-time buyer (3.5 times if you’re a second-time buyer?) There are a limited number of exceptions allowed to each institution each year. Is that what they’re talking about?
In any case, this is bad news. Those were very sensible rules brought in after the last crash. They’ve prevented a headlong rush back into EXACTLY the same housing bubble as we had pre-2008. They slowed the flight of house prices out of the reach of people on average salaries. They prevented the banking system from becoming unstable through too many risky loans. They stopped people from taking on far too much debt.
Have the rules changed? If so, why now? Choosing this moment to inflate asset prices and load more debt onto households seems like a terrible decision.
Ah yes, punished with a higher interest rate, because a traditional bank doesn’t think you can afford the lesser payment. Then NUA swoops in as the hero charging you 300 more for the same mortgage per month. Bad bad idea. Equally as bad as first home scheme.
We are back babies!
I don’t know how I feel about this.
On one hand, I got an exception for a little over the 4x limit which allowed me to buy this place, but on the other hand, 5x just adds ever more onto the amount to payback. So in my case, an extra 300 or so, which is a lot. 🫤
One Million Euro for a commuter belt 3-bed semi in 3…2…
They have some of the worst rates on the market, at first glance. Not sure how anyone would pass a stress test of 5% interest on a 5x loan, doubt there will be many people eligible for it, if any.
In the 2008 crash Banks lured people in with very low interest rates for the first two years (Adjustable Rate Mortgages). People could afford the 5x salary loan initially, but once the “teaser” period ended, the interest rates jumped. Monthly payments doubled or tripled, leading to mass defaults.
It’s a great idea if it’s done right.
A couple paying €2200 to rent a family home can easily afford €1600-€1800pm for a 100% mortgage to buy a house. Proof over affordablity above what payments will be should be accepted as a deposit.
Nua’s the time to get on the property ladder
Free car driveway turntable with every D4 x5 income 100% mortgage, we are BACK baby
All the Boomers will be creaming themselves over this
What does this mean I cannot read the article can someone tell me?
Another bump for prices!
cant wait for 2008 2.0
Be careful yall as you will have massive monthly repayments for decades
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Oh that’s just great, now we just wait for property prices to increase by another 25%, fucking wonderful
This is basically a 50 or 60 year mortgage.
The boom is back baby!
