RTE Today with Sean O’Rourke: Karl Deeter & Ronan Lyons debate mortgage caps

This is a copy of a good debate that took place on the Sean O’Rourke show today on RTE Radio. It was a good example of how two contrary points can both have supporting arguments which seek different ends but where both sides have validity. We think that a return to bubble credit would be a disaster, but equally hold dear the idea that it isn’t up to Central Banks to orchestrate the winners and losers in society.

One Comment

  1. Will

    Well said Karl. Deposit caps only strangle the middle-to-low income earners. Who has 15%-20% cash deposit on hand on a 200K Euro home (and that would be a very cheap price in Dublin right now). Imagine trying to save 40K Euro and how long would it take to save while paying rent & other outgoings? The point made by both Karl and Ronan is one of household affordability; however, month-to-month is a truer/more reliable indicator of able-to-afford than overall loan amount. Can I afford a 500 Euro a month mortgage or a 750 Euro a month mortgage based on my monthly net income? How much % is my mortgage against my net household income per month, and how much is that % going to increase due to variable rates along with other possible increases in outgoings such as in goods and services via inflation, taxes, et al.

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