I am one of the unfortunate first time buyers who applied for a mortgage in mid 2006. Like most first time buyers, I took the amount on offer to me from my bank to get my 1st foot on the property ladder.
This was over 7 times my base salary and a 100% loan to value mortgage.
I was not aware at the time I took my mortgage, but banks historically lent around 3.5 times base salary, at a maximum of 80% loan to value (LTV).
Around 3 years later, I now find myself also with €300k negative equity.
I am interested to hear from those out there who;
- Were give a 100% loan to value owner occupier mortgage during the boom.
- If your mortgage represented over 6 times you base salary at the time when drawn down.
Did you read the recent article in the Sunday Times Business by Damian Kiberd, 10-07-10 or some of the recent calls from IMF on debt forgiveness, negative equity, and 100% LTV possible negligent bank mortgage lending?
If you meet the LTV & mortgage salary multiple above and are interested in exploring what legal avenues might be open to us please email me outlining your position.
Regards
Stuart
stuart@letterboxes.org
Oh yes here we go again the pro-choice argument, the you signed a legal contract argument, no-one forced you argument.....blah, blah...
Why didn't you just pay most of your monthly salary to rent out a pokey little room from a property developer instead of wanting to you pay towards home???
We've all been shafted!
Good grief............
society at large was to blame. Everybody wanted biger houses, new cars 2 holidays a year etc etc.
I think its wrong to blame the banks as society at large was to blame. Everybody wanted biger houses, new cars 2 holidays a year etc etc.
True - there was no gun to his head.The same old story but the banks did not make you take out the loan with a gun to your head - as an adult you had a choice.
For the most important purchase in your life, you didn't do a bit of reading up on it to find out basic information such as historical ratios?
And now that your investment has gone bad, you want me and others like me to pay for it?
Everybody has their part of the blame to accept.
Well said. It is very common human behaviour, when it comes to investments, that people take responisibility for their good investments, but blame someone else for bad investments.So, as an adult, you didn't think taking out a 100% mortgage at 7 times your salary was a bad idea?
For the most important purchase in your life, you didn't do a bit of reading up on it to find out basic information such as historical ratios?
And now that your investment has gone bad, you want me and others like me to pay for it?
Do you take cheque or credit card?
I think this is what it all comes down to. Inadequate planning for adverse conditions in the future.Very few of these people took a step back to think realisticaly how they would pay for all this, what will happen if we have kids etc
You are right, but that is what banks do, lend out money at a level of risk they choose. What is ignored by ALL politicians and pretty much all of the media is the question of "Where did the banks get the money from?"But do have a close look at the actions of the bank. They explicitly fuelled the property bubble by increasing their lending limits. Simple economics 101 rules of supply and demand will tell you that if you allow people to borrow more, prices will increase. They foolishly gambled that the bubble will never burst.
But very, very few made any provisions for the rainy day. If you took on a mortgage that was realistically within your means and you didn't take out a credit union loan to pay for the deposit and furnishing, AND you took into account what would happen if you became un/under-employed, then you wouldn't have much to worry about. But this what people in general did not do.For a lot of 30 somethings, they bought within their means at the time, but their means have come down and the value of their property has also come down.
And yes, I am in Negative Equity myself but will do my very best to continue to pay back the loan as agreed in my contract that I signed.
well we are paying for the developers and the banks,
It's a vicious circle. Everybody has their part of the blame to accept. Maybe some, more than others.
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