The Derivatives That Sunk Banks In The Global Crisis

Mortgage-backed securities played a significant role in the Global Financial Crisis of 2008. These securities had attractive interest rates and were given next to perfect ratings by credit rating agencies such as Moodys and Standard and Poor. Large amounts of funding were put into the housing market through the mortgage backed securities and this funding became a cycle. People were looking to buy homes so mortgage companies sold mortgages to banks, which led to banks packaging the mortgages with other investments, and the mortgage-backed securities were sold to investors. The investors’ money created more money for mortgage lenders to offer. 

Since lenders were contributing funds to subprime mortgages, people who have lower credit scores, many of these homeowners began to default on their mortgage payments. In April of 2007, New Century, a U.S. Financial Mortgage Corporation, filed for bankruptcy because of poor mortgage lending decisions. Soon after, Countrywide, the largest U.S. subprime mortgage lender, filed for bankruptcy. Following these two mortgage lenders filing for bankruptcy, U.S. banks’ balance sheets decreased.

While subprime mortgages and mortgage back securities were instruments that …

Read More

Demand Outweighs Supply: Significant Interest in 500 New Affordable Houses

The Irish Times reports that the County Council of south Dublin has a plan to build 500 new affordable homes. This is the first time a plan has been put in place to build affordable housing in south Dublin for well over a decade. The houses are planned to cost roughly €300,000. Therefore, for first time buyers, in order to purchase, the home buyers would have to place a down payment of €30,000. However, the home buyers could also benefit from the Help to Buy Scheme. Since the home buyers are purchasing affordable housing that is less than 500,000 euro, the first time buyers could receive a tax rebate of 5% of the 300k if the home buyers take out a mortgage of at least 70% of the home’s price. This €15,000 rebate could be very beneficial to most first time home buyers. In addition, the Irish Times predicted that the affordable homes will be 40% less than market price, a significant savings.  

As reported by the Irish times, the homes will be available in three locations. The first time …

Read More

Help To Buy For First Time Buyers

The name provides a definition for itself. First time home buyers are people in the market buying a home for the first time. Compared to other home buyers, such as trader-up borrowers and mortgage switchers, first time buyers have different benefits and restrictions when borrowing than other borrowers. The Central Bank of Ireland requires a 10% down payment for first time buyers. Now, for first time buyers, a 45,000 euro down payment for a 450,000 euro home may be somewhat daunting. However, the Central Bank has offered assistance for their first time buyers to keep them in the market. The Central Bank offers a help to buy program. This benefit allows for first time buyers of new houses and apartments to take a 5% tax rebate off of properties less than 500,000 euros. In a recent case at Irish Mortgage Brokers, a married couple came looking for a mortgage on their first home. The couple did not have a home in mind at the time, but based on their income, the couple had roughly below 500k to spend. Both individuals …

Read More

Recreation and things to do in Wesel, Germany

If you will be in Wesel, you have many things you can do. The Willibrordi-Cathedral is one of the most beautiful sights in Wesel. The cathedral stands directly on the large market (in German: Großer Markt), where the former old town hall can also be found. The architecture of the buildings is very worth to see. In summer you also can sit at the place in front of the cathedral and eat some ice cream or drink some wine in the evening.

If you walk through the city center, you can find some life-size statues of donkeys. They are since the 19th century the symbol animals of Wesel. Every donkey has other colors and patterns and they are often to find in front of the shops or other buildings. After your way through the city center you will see another important building of Wesel, the “Berliner Tor”. It is like a big gate with some figures over it. It was built around 1720.

One more thing to do is to visit the citadel. The Prussian Museum Wesel in the Citadel …

Read More

Property market and house prices in Wesel, Germany

In Wesel, a city in North Rhine-Westphalia, the prices for a plot of land are currently between ninety and two hundred and forty euros per square meter. For smaller plots of land with a worse location, the prices range from one hundred and fifty to two hundred euros per square meter. Larger plots with a better location cost between two hundred fifty and three hundred fifty euros per square meter. In the last time there was only few changes of the prices for properties in Wesel.

In Wesel itself are only a few plots of land available so that is probably the reason for the price rises of the last years in Wesel and the area around because there are also only few opportunities to get a plot.

The house prices in Wesel currently costs an average 1.850 euro per square meter. Since 2017 the prices increased more than two hundred euros per square meter. The purchase of semi-detached houses costs an average of 317.000 euros and houses for only one family an average of 365.000 euros. The row-end houses …

Read More

House Moving Made Easy

House moving can be overwhelming. Here are different types of mortgage options for you to try out.

Portable Mortgage – You can move your current mortgage to your new property using a portable mortgage. You probably have to fill out a request to switch and you may have to increase the size of your mortgage if the new home has a higher property value than the old home. Watch out for a higher interest rate in the new loan. Remortgage with current lender – This method can help the home mover find better rates, but there are other costs associated with this loan that make up for this. Depending on how deep you are into your current mortgage, the fee for remortgaging with the current lender is usually a cost between 1-5% of the previous mortgage. Exit, arrangement, and valuation fees may also apply. Remortgage with a new lender – This mortgage helps because it pays off your existing mortgage. You may also be able to sell off your old home. If the property value in your area has risen, …

Read More

Politics in the area of Wesel, Germany

In Germany the politics are very strong organised and precisely regulated, controlled and defined. For everything there is a rule, regulation or fixed procedure which is always regulated in the respective public law. Sometimes there is the possibility to decide something yourself and only if the law is not clearly defined or says that you can act at your own discretion (that is not defined in the law, you have to know the meaning of the expressions to understand what you are allowed to do).The politics in Germany have several levels with different degrees of power. There is always more than one institution that works together and all relations of them are regulated.

If we look at the smallest level, there is the politic of the city. There are different parts which must work together. All of them are included in the local government. The mayor in a city is one of the highest ranking and the head of the administration. He has to do many important decisions. He works closely with the city council, because he can not decide …

Read More

The All You Need to Know Self Build Mortgage Guide

Self Build Mortgages are different from typical mortgages in the fact that it is difficult to put the key in the door immediately. These homeowners typically build their home from scratch or have to extensively renovate their property. If you are thinking about building here are some helpful tips:

Maximum Mortgage – The most one can borrow is 3.5 time their annual total income. Self-build properties are calculated by adding the site price plus the build cost plus. The banks also calculate the final valuation once the building process is completed. Most of the time, the method which yields a lower mortgage value is the method that is picked. Extra Money – It is smart to make sure to have extra money set aside in the case of unforeseen expenses. A smart bet would be to set aside approximately 10% of the total cost. You don’t have to be an expert to apply for a self-build mortgage. You also don’t need to hire a company to undertake the project. Building yourself will save you money in the long-term and can …

Read More

The local government in Wesel, Germany

In Germany every city has its own local government. Their customers are mainly the inhabitants of the respective city. The city administration is divided into several fields of activity. There is no default how to organise or divide the several fields of activity or the different areas. That is the reason why each local government is different from the others. Only a few things are the same, for example the tasks and the inhabitants as costumers, but the organisation inside of the local government is only similar to the others.

The city administration in Wesel is divided into four departments. The heads of the departments together form the administrative board of the city administration. This board is responsible, for example, for the planning of administrative tasks and fundamental decisions on organisation and personnel management.

The first department is headed by the mayoress Ulrike Westkamp and is divided into one specialist area it named city development. This is also divided into five teams with different tasks. There are for example the teams property management, traffic planning and road construction, basic spatial …

Read More

The history of Wesel, a city in North Rhine-Westphalia, Germany

The history of Wesel begins around 3000-700 before Christ. Tool and cemetery finds in gravel pits point to a population of the area in the Stone Age and Bronze Age.

The first verifiable population on today’s Wesel city area arose after the migration of the peoples and attained its importance presumably at the time of Charlemagne, King of the Franks, that is in the year 800. The name Wesel first appeared in a document dated 1 May 1065. In the book of documents is also a copy of documents from the 8th century in which the name Wesele appears.

At the beginning of the 12th century Wesel was already a transshipment point for goods from the Rhine to the Lippe and vice versa. With the elevation of Wesel in September 1241 by Count Dietrich, Wesel’s guarantee obtained a number of privileges, such as free inheritance, freedom at all sovereign customs posts, sole prosecution before the municipal court and a maximum of one day’s military service. The privileges were expanded until 1277.

While Wesel’s trade in the 13th century was limited …

Read More