We all know that first-time buyers prop up the housing market since they provide the equity for the trader-uppers and so on up the ladder.
So the bubble can't survive without finding a succession of new ways to give the precious FTBs more purchasing power - the erosion of income multiple criteria for lending with the introduction of that great term "affordability", followed by 100% loans, did the trick in recent years.
But here's a great new wheeze from across the water - not just allowing parents to go guarantor (the 'problem' with that is that it doesn't raise the amount that can be borrowed which is the critical element in pouring more money into the housing market to keep the whole ship afloat) but actually allowing parental income to be taken into account in deciding on the amount to be advanced. Have a look at the following article: and note particularly the bit about the Bank of Ireland First Start product which will lend once the applicant's income plus four times the parents' income, up to 100% of the purchase price.
What a storming product! The housing market is safe......forever!
So the bubble can't survive without finding a succession of new ways to give the precious FTBs more purchasing power - the erosion of income multiple criteria for lending with the introduction of that great term "affordability", followed by 100% loans, did the trick in recent years.
But here's a great new wheeze from across the water - not just allowing parents to go guarantor (the 'problem' with that is that it doesn't raise the amount that can be borrowed which is the critical element in pouring more money into the housing market to keep the whole ship afloat) but actually allowing parental income to be taken into account in deciding on the amount to be advanced. Have a look at the following article: and note particularly the bit about the Bank of Ireland First Start product which will lend once the applicant's income plus four times the parents' income, up to 100% of the purchase price.
What a storming product! The housing market is safe......forever!