I would urge any borrower who experineces a problem in getting credit from the banks to contact their local TD or representative as these people need to know EXACTLY how the banks are treating customers. Our Dail needs to be made aware of the modus operandi & criteria currently being enforced which is excluding the vast majority of borrowers. This is ultimatley what will stiffle economic growth going forward.
Sorry for the rant but I have to relay experiences at present.
I know this is your job and lively hood which your family depends on so i can understand the passion in your statements.
Having said that i think you need a health dose of reality. We are just coming out of a huge asset bubble the likes of which haven't been seen before, the country is in a mess and property was a huge factor. Banks were bailed out largely because of this, bailed out with public money.
Now banks are returning to traditional lending criteria, 3.5 times main earner and 1 times second, ignoring what went on since 1999, this has always been the way and many would say lending criteria in the 1980's were much stricter.
So say a typical couple both earning 35k apply for a mortgage, that would give them a mortgage of 140k, assuming they need 10-20% deposit, that puts the house price at around 150-160k, doesn't that look like a more realistic house price, not the 260k current national average house price.
Now the real questions;
Would a couple (as example) earning 35k get a mortgage for 150k? (i know its yes, maybe not all banks but the majority)
Is it better for banks (as the last 10 years) to give mortgage on 10 times income? Is that really better for the country and future generations?
Is it better to have average house prices complety out of line with wages?
Finally, banks have gotten a whole lot stricter, but you (general) cant complain about them getting bailed out and then complain that people aren't getting mortgages. When the average house price is in line with average wages, mortgages will be more freely available, but still only those that have secure employment and can prove ability to service the loan will get them (your ability to pay currently and previously does not guarantee future ability). No one has a god give right to own a house, a point that was lost on most people during the last few years.