These measures will help prudent buyers

Padraigb

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Moved from another thread

- another group deserving of protection are the prudent buyers who might be priced out of the market by reckless (or desperate) borrowers;
 
Hi Padraig

A very interesting point which I had not seen raised before.

During the bubble, banks which were initially prudent, found that they were doing no lending. If they had moderate LTVs, customers went to banks which had reckless LTVs. When one started doing 100% mortgages, the others had to follow. I have been told that one bank lobbied the Central Bank to block 100% mortgages. When they got nowhere, they had to get into that market.

Likewise, if a prudent borrower decides , of their own initiative to save 20% of the house price before buying, they will keep getting outbid by people who are prepared to borrow 92% if there are no restrictions.

So maybe forcing prudence on everyone is a good idea.
 
I feel the same and have done for many years. It takes lifestyle choices to gather a deposit.

The most difficult part of buying a house near Dublin is competing with people who take as much money as they possibly can get over as many years as they could get and then when they can no longer pay the mortgage they want to sit in the house and say the banks are like the English trying to take their homes away.
 
Lived in mobile home to save for our self build bungalow....amid the jokes n laughs from local people, often to our faces...Alot of people sorry now they not in our position today. Freezing in their huge houses admiring their wedding photos that they will strive to pay....

however I still see young couples building huge houses and barely out of college, wedding date set and flash car...the money has to be coming from somewhere....
 
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