Something occured to me today, and I have a big question.
Are the builders who are offering all these "Pay your Mortgage" deals, bonding the repayments to guarantee their payment in the event of bankruptcy?
The reason I ask this, is that I believe that a large number of builders may/will be susceptible to cashflow problems and thus bankruptcy due to residential construction winding down. These offers, are designed to entice buyers and allievate short term cash flow problems for the builder by getting their property off loaded. In the long term this may worsen their cashflow.
I think these offers are a worrying development and a timebomb and as such the structure of such offers needs to be promptly investigated by the Financial Regulator, Consumer Association and Central Bank.
Brendan?
Are the builders who are offering all these "Pay your Mortgage" deals, bonding the repayments to guarantee their payment in the event of bankruptcy?
The reason I ask this, is that I believe that a large number of builders may/will be susceptible to cashflow problems and thus bankruptcy due to residential construction winding down. These offers, are designed to entice buyers and allievate short term cash flow problems for the builder by getting their property off loaded. In the long term this may worsen their cashflow.
I think these offers are a worrying development and a timebomb and as such the structure of such offers needs to be promptly investigated by the Financial Regulator, Consumer Association and Central Bank.
Brendan?