Central Bank mortgage caps calculator

Central Bank Mortgage Cap Calculator: did you get shafted?

We have designed a simple calculator that lets you put in your property price, what rents you are currently paying, how you think prices will change and how many years it would take you to save a 20% deposit if you only have 10% now.

Just download the excel file, fill in the bright yellow boxes on the first sheet, and then scroll down to the green area to find out if you win or got shafted. (download here)

You can play around with different scenarios, but suffice to say that a regular couple who have €25,000 saved up and are looking to buy a property for €250,000 today will be worse off if rents and property prices went up by 2% a year (and it took them 4 years to save the additional deposit required) to the tune of €15,500.

We don’t believe it is in the remit of the Central Bank to damage the balance sheets of financially healthy individuals, but you can test your own hypothesis and see how it …

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RTE Drivetime: Mary Wilson speaks to Irish Mortgage Brokers about Budget 2015

We spoke with Mary Wilson on Drivetime about the Budget 2015 announcements and agree that it wasn’t a ‘budget for builders’ because it was more like a budget for land bankers.

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RTE ‘Talking Money’ with Karl Deeter & Jill Kerby, ‘the fantasy budget’

It was budget week and on ‘Talking Money’ we came up with a ‘fantasy budget’ which considered some of the things we might do if budgetary powers were in our hands. Some are far out, others are novel, some (like car tax abolition) are pragmatic, you can decide for yourself what you think!

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Budget night 2015: Vincent Browne’s ‘Tonight’ show on TV3

On the night of Budget 2015 we were asked to participate in a large panel discussion on Vincent Browne’s ‘Tonight’ show. We tried to make the point that the budget was not one that should have people too disappointed, it was the first time in years that anything came back to tax payers rather than taking more (apart from the better paid who now have a super USC rate).

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central bank failure

Prudence puts you deeper in debt… Nice work by the Central Bank

The news that higher loan to values will have to be limited is being mistakenly applauded by many financial commentators, almost none of whom work in credit. Towards the end of the post we demonstrate that you can actually be worse off by being forced to wait and put down a larger deposit than if you acted normally and bought today with a 10% deposit.

That’s why taking a look at the numbers beneath and how it will affect mortgages is important. First time buyers are typically the younger end of the house owning spectrum, they largely chose to stay out of the market during the financial crisis, a good choice, very rational.

That is why the people renting rose so much between 2006 and 2011. A total of 474,788 households were in rented accommodation in 2011, a considerable rise of 47 per cent from 323,007 in 2006.

It created a build up of non-owners who want in, but who are not the main driver of property price increases …

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TodayFM: Matt Cooper speaks to Irish Mortgage Brokers

On Today FM’s ‘last word’ show with Matt Cooper we were asked to discuss the issue of mortgages being capped for the loan to vlaue and the loan to income.

Robbie Kelleher of Davy Stockbrokers was also present and he presented some thoughts on why it was a good idea while Karl Deeter agreed that prudence is necessary but that there are better ways to achieve it than via a blunt policy instrument that will hurt about two thirds of first time buyers.

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Newstalk: Lunchtime speaks to Irish Mortgage Brokers about ‘mortgage caps’

Jonathan Healy of Newstalk spoke to Karl Deeter about capping mortgage loan to values and loan to income amounts. This is a logically compelling idea but it won’t fix the supply shortage or necessarily prevent the problems we are told it will fix. It will also mean that about 2 in 3 first time buyers face an adverse effect that people who already bought didn’t have to deal with, namely that of trying to save up a 20% deposit.

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apologies we had a system error

Apologies to our clients, we had a problem…

We’d like to apologise to all of our clients who interact with us via our website, some of you had called saying that applications were not responded to and we were adamant that we had replied to people and ran tests to check.

We were wrong, there was a glitch and some applications were quarantined in our email, we have the security settings as high as they can go and for some reason between the two systems it started to see communication from our own website as being spam-like.

Nobodies personal information was ever at risk, no data was lost, it was an effort to be overly vigilant which created the problem, it was over protected, nobody suffered any financial loss, and in an effort to help make amends we’ll offer some kind of sweetener to people who still choose to proceed with our firm.

Once again, we are sorry, it was a well intentioned high level of protection (which will stay as it is, we’ll just fix the error that created this particular problem) that has created a delayed …

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