On talking Money on the 24th of November we looked at the issue of mortgage arrears and the role of the Insolvency Service in terms of finding ways to get solutions with guaranteed end dates. There is a mismatch between the goal of banks and borrowers and it is resulting in solutions that often don’t work.
Last week on ‘Talking Money’ Mary Wilson spoke to Karl and Jill about ways to ‘beat the bank’. In an era of low returns and higher costs on credit and use of the financial system beating the banks becomes an important aspect of finances because of the amount of interaction most of us have with banks.
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.
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!
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.
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.
Pat Kenny spoke to us about mortgage lending and specifically the story which appeared in the news today that the Central Bank are thinking about copying the moves in the UK where the FCA are going to impose loan to value and loan to income restraints.
Today on the 1 O’clock News on RTE Radio 1 we were asked to consider things which the budget could do to help achieve some stability in the housing market.
We echoed the Construction Industry Federation for a call to end ‘Part V’ contributions as this is a 20% tax levied only on new homes which is meant to provide for social housing. This is a mistake, social housing is a society wide responsibility and should not be put only on the shoulders of new home buyers.
Other ideas included ending development levies and dropping the VAT rate while also being mindful of the rented sector.
This week on Drivetime’s ‘Talking Money’ we were discussing water charges, the prices have been published today, we were working on the only indicative price available before this which was published by the Commission for Energy Regulation.
The politics of this weren’t considered, we just looked at costs and the alternative costs of substitution by digging wells, rain water harvesting or the use of septic tanks. The findings show that water is fairly cheap compared to the cost of getting it by your own means.
Matt Cooper from ‘The Last Word’ had Charlie Weston (Irish Independent) on his show along with Karl Deeter to discuss mortgages, loan rates and some of the developments that are starting to happen in the marketplace.
Some of the main points of interest were that switching is available again, rates are likely to lower and that some lenders are coming out with longer term fixed rates.