Mortgage providers to restrict rural lending

We were mentioned in the Irish Independent today in a story about lenders restricting mortgage credit in rural areas. They are doing this by lowering LTV’s or coming up with requirements on population size for LTV’s (Loan to Values).

Mortgage broker Karl Deeter of Irish Mortgage Brokers said lenders were now discriminating against those seeking loans to buy property in rural areas. “If you are not buying in Dublin, Cork, Limerick or Galway cities they do not want to know. This is all part of a growing trend to discriminate against properties outside of the cities,” Mr Deeter said.

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Survival of the weakest, only in Ireland.

If the State can’t organise a bailout effectively then what hope have they of running a bank? A simple and yet profound question: if the bankers who run banks for a living (many having survived the 70’s and 80’s) can’t find the answers then what hope have the state who have no track record in doing so?

This is not a simple situation, banks that survived the Great Depression have crashed and burned, given this, is it vital to save every bank? Is a bank going to make it even with a slush fund? Thus far I remain unconvinced.

Anglo Irish Bank was set to get a bailout to the tune of 1.5 billion Euro. This couldn’t be arranged in time to save the bank and they have been nationalised, the speed of their fall from grace tells us at least some basic facts:

Anglo were not the strongest bank in the bunch, I won’t get into balance sheets, loans, impairments or anything else, the mere fact that they fell first …

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The end of ownership

I had an interesting conversation with an Estate Agent recently who has been in the industry for over thirty years and he said that he felt he was seeing the ‘end of ownership’ in the young people today. That really got me thinking.

‘What do you mean by that?’ I naturally enquired, and basically he said that he was seeing a trend in young people not feeling any incentive to buy a house, not only in the short term but ever, ‘why would they buy, kit a place out and go to all the expense when they can just rent a place ready to go and any problem is the landlords?’ was his response. And one must admit that there is a large dose of common sense in that. Renting is no more dead money than mortgage interest is dead money, however, what it could mean for the future is that we become a nation of landed and un-landed citizens, which is ironic given that land ownership has played such a strong part in …

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