Two people earning a total of €60,000.00 and cannot source a mortgage. Unfortunately, this is a problem that is becoming far too prevalent in Ireland. Let’s say they earn €80,000.00 between them. They would almost find themselves in the same position earning the lesser amount.
The couple in question are probably reading newspaper/online house-for-sale ads with offer “bijou” accommodation for first-time buyers or this “gem” will facilitate your entry to the property ladder. The couple are probably reading newspaper articles about celebrities/high-earning-professionals withholding large payments due on property valued at the amount akin to a Lotto Jackpot win.
Most likely the financial institutions don’t wish to know the like of this couple except to occasionally offer a token mortgage where it can be advertised that they give home loans to those who dream and smile benignly at the camera.
I can nearly hear the reader asking “Where is all this going?” I’ll ask another question “Is it time for the financial institutions to improve their financial ethics or even’ give something back?’” I have no knowledge if there is such a thing as a 100 year mortgage available. If there were, first-time purchasers of homes could buy something decent where they can live, raise a family and get on with life. Obviously, nobody is likely to see out the 100 year mortgage, but I reckon it could somehow run onto the offspring of the original mortgagees or even be taken over by future buyers of the property.
The effect on the price of property will come into question. There will be swings and roundabouts. But, have a look at some threads on this forum which debate the morality of giving mortgages to older people who most likely will be dead within the term of the loan or giving interest only mortgages to people who have little or no chance of ever gaining on the principle amount.
The 35, 40, 45, 50, 55, 75,100 year mortgages managed properly can be good business sense and will make good class housing available to those who hitherto had to buy an over valued “damp dump” or live in the neighbourhood of some nineteen year old “gangland corporal.”
I reckon it’s time for the financial institutions to step up to the plate and do something good and even make a profit in the process.
