The mortgage market is poised to grind to a halt over the coming months as banks run up against Central Bank limits on lending to homebuyers, it has emerged.
Mortgage experts are now warning that a number of lenders have already maxed out the number of exemptions they can grant for the year under new rules."
Banks are allowed to breach the rules in a limited number of cases, however, there are fears some lenders have already run out of room to allow exemptions to the rules, banking andmortgage market sources told The Sunday Business Post last week.
Here's some info on Mortgage Approval stats...they don't necessarily translate into draw downs thoughI wonder what are the figures for mortgage draw-downs since the new rules were applied?
As a prospective seller/buyer, I see a lot of houses around me going sale-agreed very quickly (at crazy prices) over the past few months, but very few are actually sold. There are two houses very close to me that are sale-agreed for 6 + months, but dont seem to have closed the sale. It makes me wonder if we haven't yet seen the full effect of the new mortgage rules on the Dublin property market.
Meanwhile, developers sit on a huge amount of green fields that they won't develop until the profit margins are right.
He [Karl Deeter] speaks about a mortgage drought. That is a bit alarmist. The reality is that no lender is facing any restriction in lending up to the 80% limit for second-time buyers and the 90% up to €220k limit for first time buyers.
The "drought" only affects those who want to borrow in excess of the limits.
"Somehow we have managed to create the 1970’s all over again, where people queued and timed their mortgage application because the Building Societies didn’t have the money, now they do have the money they are just not allowed to lend it!"
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