Duke of Marmalade
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I have no problem with the banks themselves setting their rules, which they should do on a rational economic basis.
When an organ of the state interferes with that process it is potentially very unfair to those it disadvantages.
Now a curb on income multiples seems reasonable enough and not obviously unfair.
But an insistence that the mortgagee stomps up 20% of the value of the house is blatantly unfair and favours greatly those whose daddy can cough up.
Consider a high flying Ph D who has just landed a plumb 100K a year job with Merrills. This gal is one good lending prospect. Unfortunately she came from Tallaght and neither her nor her folks have a bean (spent it on educating her). She is certainly good for a 500K mortgage by any commercial criteria, but Patrick wants her to save 100k to get on that ladder. How many years will that take! I presume Patrick never had any similar difficulty.
Update: I have just read SBarret's Key Post. I note that there is scope for LTVs above 80% for 15% of lending.
So I take back my criticism of Patrick. These proposals seem eminently fair and sensible. 15% should easily be enough to cope with Miss Tallaght Ph D.
When an organ of the state interferes with that process it is potentially very unfair to those it disadvantages.
Now a curb on income multiples seems reasonable enough and not obviously unfair.
But an insistence that the mortgagee stomps up 20% of the value of the house is blatantly unfair and favours greatly those whose daddy can cough up.
Consider a high flying Ph D who has just landed a plumb 100K a year job with Merrills. This gal is one good lending prospect. Unfortunately she came from Tallaght and neither her nor her folks have a bean (spent it on educating her). She is certainly good for a 500K mortgage by any commercial criteria, but Patrick wants her to save 100k to get on that ladder. How many years will that take! I presume Patrick never had any similar difficulty.
Update: I have just read SBarret's Key Post. I note that there is scope for LTVs above 80% for 15% of lending.
So I take back my criticism of Patrick. These proposals seem eminently fair and sensible. 15% should easily be enough to cope with Miss Tallaght Ph D.