Local authorities to offer cut-price mortgages to FTBs

I currently owe slightly under 250k with 20 years to go and pay €1600 per month at 4.75%..

I’d happily extend by 5 years to achieve €1066 per month.!!
 
Sarenco said:
According to Deloitte's tax calculator, a single person with a gross income of €50k should have a disposable income of €36,548. 35% of €36,548 works out at €12,792, or €1,066 per month.

By my calculations, the monthly payments on a €250k mortgage, at a 2% fixed rate, over a 25 year term works out at €1,060 per month.
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And if that person went to a Bank today for a mortgage, what would they get? 3.5 times x 50k = €175k?
So they get 5 times their salary with the LA.

Why bother with a Central Bank having mortgage rules when political necessities trump all.
 
I'm going to change jobs, get the biggest gaff I can in Westmeath, Cavan or Leitrim for 250k. @25 yrs 2%, = 953pm.

Rent out as many rooms as I can for 1,166 pm or 14k per annum. Govt can pay me to own a gaff. Might need 10 bed in Leitrim though.
 
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Other than post on Askaboutmoney, is there anything at all we can do to stop stupid decisions like these?

I was having a good day today and now I feel annoyed and frustrated.

Brendan
 
If I’m on €55k a year, can my employer and I come up with a scheme to get me back to €49k with an equalisation bonus to follow?

Or if I’m on €74k and my wife’s on the same, does she give up work temporarily to get us a cheap home?
 
If this is the mindset of the people charged with sorting issues in housing, health, crime... these nonsensical tokenistic schemes which just encourage gaming of the system ... we're even more screwed than I thought we were.

If things improve, it will be in spite of, not because of, government.
 
Gordon Gekko said:
If I’m on €55k a year, can my employer and I come up with a scheme to get me back to €49k with an equalisation bonus to follow?

Or if I’m on €74k and my wife’s on the same, does she give up work temporarily to get us a cheap home?
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Yes Gorden and it is the people who are well off and connected who can game the system,
 
ClubMan said:
This Indo article says otherwise
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Well, the article is wrong in that case.

The Central Bank mortgage measures apply to any "regulated financial service provider that provides a housing loan to a borrower". Local authorities are not regulated financial service providers.

This Irish Times article makes it clear that this scheme circumvents the Central Bank rules - frankly, that's the main point of this daft scheme.

https://www.irishtimes.com/business...ho-is-eligible-and-how-will-it-work-1.3363921
 
Pity you have to be a FTB. This would have suited me otherwise, I'm paying €1250/month rent with no hope of getting a loan as I've just reached a settlements with bank on some previous investment properties.
 
ClubMan said:
Bonkers scheme though.
Why don't the powers that be put some effort into dealing with the exorbitant mortgage variable rates charged by the banks?
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This scheme could force the banks into lowering their interest rates in order to compete with the LA's. It could also see them pressuring the Central Bank to relax the rules on lending as they will be losing business otherwise.

You'd need a data warehouse to keep tabs on all the scheme's that now exist around housing supports for renters, potential buyers and those in arrears. Most of the schemes having come into being since Murphy took over. His scattergun approach is all noise and very little substance.
'Throw more money at it' is the answer to everything in this country
 
Delboy said:
This scheme could force the banks into lowering their interest rates in order to compete with the LA's. It could also see them pressuring the Central Bank to relax the rules on lending as they will be losing business otherwise.

You'd need a data warehouse to keep tabs on all the scheme's that now exist around housing supports for renters, potential buyers and those in arrears. Most of the schemes having come into being since Murphy took over. His scattergun approach is all noise and very little substance.
'Throw more money at it' is the answer to everything in this country
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Why? If they require 2 rejections from Banks to qualify for this scheme then the Banks' clearly don't want to compete for these people's business.
 
Andy836 said:
Why?
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Because banks are restricted by Central Bank rules from offering home loans at these levels. It's got nothing to do with competition.

The whole point of this scheme is to circumvent the Central Bank's mortgage lending restrictions.
 
The whole Fannie Mae and Freddie Mac US-government sponsored mortgage debacle was 10 years ago. Short memories in government.
 
renter45 said:
If the council opened their books to switchers under €325k it would put huge pressure on the banks, i.e a state run mortgage lender. They could pick up their share of good risks.
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The 200 million will go to well connected people with good risks dished out by local councils ,This is FG being more FF than FF it self, It all down to FG wanting to steal FF clothing the party with the most pull locally is the one that will survive,
 
Sarenco said:
Because banks are restricted by Central Bank rules from offering home loans at these levels. It's got nothing to do with competition.

The whole point of this scheme is to circumvent the Central Bank's mortgage lending restrictions.
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deloboys statement was "this could cause banks to compete with LAs". It won't.

the whole point of the scheme is subsidized housing.
 
PLEASE open this up to others stuck on mortgages with high SVR rates = people with a proven track record of paying their mortgages. This would finally level the playing field in Ireland. Otherwise this scheme is bonkers and I truly despair of our politicians in Ireland!
 
Tebbit....Government could have used AIB to offer such deals to existing mortgage holders who wanted to switch and FTB when we owned most of it.
 
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