Hi Dermot
I heard Ross Maguire on Sean O'Rourke this morning talking about the way New Beginning jammed up the repossession system in the courts.
And then last night, he was complaining about the high mortgage rates.
He does not see the connection.
I see the connection, but I don't think it should affect low LTV mortgages.
And I have been consistent over the years in saying that people with unsustainable mortgages should lose their homes. And part of the reasoning for this is that it's in the interest of all the other borrowers who do pay their mortgage, often with a great struggle.
Brendan
Brendan. I admire what you are trying to do and agree with it but for the future there needs to be a loosening up of the path to repossession.
There is a link between the problem of repossession and high SVR rates/proposed higher deposits for purchase.
This link will not go away until there is a change in the repossession situation. The change is very unlikely to occur anyway soon as it will be seen to be unpopular no matter how well the argument is explained.
The Banks will use the current repossession argument to support their imposition of high SVR rates.
I came from a time of high deposit rates to purchase my house at an initial rate of 10% later rising to over 19% and seriously struggled to make repayments but made them just the same.
I made mistakes in purchasing property but paid my way totally.
I like a lot of other people are paying their way but find it difficult to swallow the pill of paying for others who do not want to pay or who want to stay in a home that is in a good address but unaffordable.
I see people who could afford to pay for a lesser house but will not move from the grand house that they currently are paying nothing back on for the last 4 to 5 years.
I am no supporter of the Banks but they have to make a profit in order to continue but we have to reconsider the rules on repossession in order to get lower rates for the future.
There is a very poor chance of new entrants to the mortgage market when the repossession problem that we have experienced over the last 6 or 7 years.
No new entrants equals no competition equals high mortgage rates.