CGorman said:Be afraid. Be very afraid. Theres now the serious prospect of people ending up with negative equity should the market even decline marginally. And if that happens, things won't be nice.
contemporary said:negative equity only applies if you plan to sell it within a few years, if people want to buy a home to live in and raise a family a 120% mortgage will suit them. who this will not suit is property investors
Joe & Jane rent a house for €1200 a month, so cant really save for a deposit, now JOe and Jane can get a 120% mortgage that will cost them €1200, the net effect is that they are funding their own home.
DOBBER22 said:And what of interest rate rises? Basically it comes down to how big your mortgage is the bigger it is the more financially stretched you will be when interest rates rise
contemporary said:plenty of people i know have borrowed from other sources to pay for the deposit or furtniture / solicitor etc. a jump in the rates will affect these people too, also the rates they borrow at are higher than mortgage rates.
in any case wont these be stresses tested at +2% like the rest of them?
??????????????????DOBBER22 said:The Financial Regulator said it would not oppose the move.
"I don't think the financial institution can stand in the way of a person's constitutional right to make mistakes," said the regulator's chief executive, Liam O'Reilly.
If FTB's are borrowing from any source to buy new plasma screens and dining sets, then they deserve all the negative equity they can get. If you have to borrow for luxury items like this, you can't afford it. Beg, steal, borrow 2nd hand items from family & friends until you can afford your own.DOBBER22 said:Do people really want to pay for the plasma screen and dining set over the life of their mortgage surely it will end up costing you a lot more over the life of a mortgage?
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