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Realistbear

Ireland's Solution To Hpi-- Mortgages At 10 Times Salary

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http://www.rte.ie/business/2006/0421/presswatch.html?rss

Mortgage at 10 times salary -

First Trust, the Northern Ireland arm of AIB, lent a customer 10 times their annual salary to purchase a home, writes the Irish Times. The mortgage was approved by Helen Keating, the manager of First Trust's mortgage unit, after being referred by the customer's branch manager. A spokeswoman for First Trust said it was not in a position to comment on the specific details of any mortgage application as it has a duty of confidentiality to its customers. The customer in question was advanced 100% of the purchase price of a house.

So that's how they have been doing it! :o

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After repayments and regular outgoings the customer was left with about £100 (€144) a month. The normal rule of thumb for mortgage lending is a multiple of three to four times the salary or, more commonly, repayments of about 35% of disposable income. In this customer's case, repayments came to more than 50% of disposable income. The customer was expecting an unspecified financial settlement as part of a divorce and had a business relationship with the bank. Both these points were taken into account when the mortgage was sanctioned last autumn.

Forget your income, its the sucker you married that matters :o

A business relationship with the bank, but no income YEAH RIGHT

I aint sayin shes a golddigga

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Yep, I know an individual who's been approved for 10x mortgages (on the basis that 3 rooms in the 4 bed house would be rented out). Some colleagues who seem to be in similar boat but slightly smaller mortgages, only 8x or so. Also a couple who got 5x joint, probably on the basis of selling their firstborn into slavery or something.

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The cracks are starting to appear.

A bit of leaking and DENIAL to soften the blame.

The EIRE market has the sentiment of the US and will be a good weather vain for the UK market.

It's a domino effect; the British are past masters of DENIAL and will maintain a death grip on the old "Rent is dead money, House Prices only go up" etc maxims.

The US accept where they are, and where it will go, The Irish follow the US SENTIMENTAL path although lagging a little.

The UK had better "Wake Up!” It’s going to pass like a Tsunami right over Britain and to the EU.

Pull back from the coast and dorn your Sowesters.

The western island is the "Early Warning Centre"; we’d do well to heed it.

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Wow there it goes, Every post I make is a sinker.

NB:

Strongbow cider is no longer available at 8 cans for £5.49, An outrage, I now have to buy in 24 packs.

If this isn't

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Wow there it goes, Every post I make is a sinker.

NB:

Strongbow cider is no longer available at 8 cans for £5.49 from the Threshers group , An outrage I now have to buy in 24 packs, 4 cans for £3.99 you must be joking.

If this isn't a case for GB's/BOE's hidden inflation (Forget milk, this is serious), I don't know what is.

The sooner we return to the "Pebble Standard" the better, I remember the days when it was 3.5 Menhirs to Castle ratio.

A bag of gravel could get you a nice chalet in Scarborough.

These days you need to sell Stone Henge and Half a Quarry to buy a small 1 Bed Flat in Filey.

Edited for spelling.

Edited by SithClone7

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Yep, I know an individual who's been approved for 10x mortgages (on the basis that 3 rooms in the 4 bed house would be rented out). Some colleagues who seem to be in similar boat but slightly smaller mortgages, only 8x or so. Also a couple who got 5x joint, probably on the basis of selling their firstborn into slavery or something.

I understand 5, or even 6, times joint income mortgages have been around in the UK for a couple of years now, and are relatively widespread.

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http://www.rte.ie/business/2006/0421/presswatch.html?rss

Mortgage at 10 times salary -

First Trust, the Northern Ireland arm of AIB, lent a customer 10 times their annual salary to purchase a home, writes the Irish Times. The mortgage was approved by Helen Keating, the manager of First Trust's mortgage unit, after being referred by the customer's branch manager. A spokeswoman for First Trust said it was not in a position to comment on the specific details of any mortgage application as it has a duty of confidentiality to its customers. The customer in question was advanced 100% of the purchase price of a house.

So that's how they have been doing it! :o

Ten times annual salary is not unusual in the Asian Tiger economies. WIth GDP growth rates of up to 10% wages rise in real terms thus quickly eroding the debt multiple. Ireland has been the Celtic Tiger with high growth rates so why not ?

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Ten times annual salary is not unusual in the Asian Tiger economies. WIth GDP growth rates of up to 10% wages rise in real terms thus quickly eroding the debt multiple. Ireland has been the Celtic Tiger with high growth rates so why not ?

The Asian Tiger economies are infamous for booms and busts also. And they don't get much warning of the changing winds either. Its a little different this time as we have been forewarned by Japan that IR are going up and cheap money is not going to be cheap for much longer.

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What eventually happens to Tiger Economies:

http://www.thepost.ie/post/pages/p/story.a...3686-qqqx=1.asp

Debt collection agency warns of rising debt levels

23 April 2006 By Eamon Quinn

The country’s largest debt collection company has warned that rising interest rates will lead to a significant rise in retail and corporate debt levels.
Intrum Justitia said it won 150,000 new cases of debt recovery in Ireland in 2005 and expects its caseload to increase by 15 per cent this year
. The rate of increase is forecast to accelerate in 2007 as interest rates continue to rise.
‘‘The growth in assignments remains lower than the overall rapid 30 per cent growth in credit,” said Nicholas Biggam, managing director at Intrum.
‘‘A combination of rising interest rates and unemployment would certainly lead to a potentially dramatic increase in payment problems.”

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http://www.thepost.ie/post/pages/p/story.a...3651-qqqx=1.asp

Irish Post

Jittery consumers make nervous voters

23 April 2006 By Pat Leahy

Consumers have the jitters, with confidence showing a downturn since February as higher interest rates and rising inflation begin to bite, according to the latest consumer confidence index by Dublin market research company Behaviour & Attitudes.
Although primarily produced as a business research tool, consumer confidence indices have become an integral part of all parties’ political intelligence, and they keep a close eye on the trends.
‘‘It’s a proxy political indicator,” said one prominent political figure last week.
‘‘Key political number,” summarised a source in a different party.

Could the Irish Tiger be getting nervous? How many property investors are thinking, collectively that is, it may be a good time to sell?

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People don't realise debt is not a tool; it is a method to make banks wealthy, not themselves.

I'd better give the Money Advice & Budgeting Service (MABS) a plug, seeing a lot more people in Ireland are going to need help managing their finances, especially those on low income.

http://www.mabs.ie/index.html

I believe we should push to have financial literacy as part of the curriculum in schools that teaches the next generation how to avoid debt, live on a budget, and build wealth!

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People don't realise debt is not a tool; it is a method to make banks wealthy, not themselves.

I'd better give the Money Advice & Budgeting Service (MABS) a plug, seeing a lot more people in Ireland are going to need help managing their finances, especially those on low income.

http://www.mabs.ie/index.html

I believe we should push to have financial literacy as part of the curriculum in schools that teaches the next generation how to avoid debt, live on a budget, and build wealth!

With a series of lectures from the Chancellor of the Exchequer of Great Britain, the Right Honourable Gordon Hamish "Miracle Economy" Brown, P.C. Title: "Never borrow more money than you can afford to repay."

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Ten times annual salary is not unusual in the Asian Tiger economies. WIth GDP growth rates of up to 10% wages rise in real terms thus quickly eroding the debt multiple. Ireland has been the Celtic Tiger with high growth rates so why not ?

but real wage increases are only 1-2% in ireland yet house prices are rising at 15-20% from already high levels.

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With a series of lectures from the Chancellor of the Exchequer of Great Britain, the Right Honourable Gordon Hamish "Miracle Economy" Brown, P.C. Title: "Never borrow more money than you can afford to repay."

And Greenspan, don't forget Greenspan! Not to mention that builder bloke from down the road... to riches.

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Ireland has been the Celtic Tiger with high growth rates so why not ?

:lol: Ireland has been the recipient of absolutely vast quantities of EU cash. Yes, it's grown from nothing, so its growth rates have been extraordinary, but would it manage without its regular EU bottle-feed? Would be interesting to find out.

'High growth rates so why not 10x mortgage' - what planet are you on? It's completely irresponsible lending - something that might well one day be confirmed by judge!

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:lol: Ireland has been the recipient of absolutely vast quantities of EU cash. Yes, it's grown from nothing, so its growth rates have been extraordinary, but would it manage without its regular EU bottle-feed? Would be interesting to find out.

That's not entirely fair, Ireland is now an established centre for inward investment especially from large US corporations as they see Ireland as an efficient way to launder transfer profits from their European divisions at lower, or cleverly non-existent, tax rates.

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http://www.rte.ie/business/2006/0421/presswatch.html?rss

Mortgage at 10 times salary -

First Trust, the Northern Ireland arm of AIB, lent a customer 10 times their annual salary to purchase a home, writes the Irish Times. The mortgage was approved by Helen Keating, the manager of First Trust's mortgage unit, after being referred by the customer's branch manager. A spokeswoman for First Trust said it was not in a position to comment on the specific details of any mortgage application as it has a duty of confidentiality to its customers. The customer in question was advanced 100% of the purchase price of a house.

So that's how they have been doing it! :o

Actually, this is in the UK - as it is Northern Ireland, not the Republic. Not sure I've yet seen or heard of 10X in the Republic (yet!)

It's shoddly journalism mind you - it transpires the customer had a large divorce settlement which was imminent so the 10x deal was probably only for a few months.

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Wow there it goes, Every post I make is a sinker.

NB:

Strongbow cider is no longer available at 8 cans for £5.49 from the Threshers group , An outrage I now have to buy in 24 packs, 4 cans for £3.99 you must be joking.

If this isn't a case for GB's/BOE's hidden inflation (Forget milk, this is serious), I don't know what is.

The sooner we return to the "Pebble Standard" the better, I remember the days when it was 3.5 Menhirs to Castle ratio.

A bag of gravel could get you a nice chalet in Scarborough.

These days you need to sell Stone Henge and Half a Quarry to buy a small 1 Bed Flat in Filey.

Edited for spelling.

plenty of flats going for under 70 in Brid though

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Guest donall

plenty of flats going for under 70 in Brid though

Northern Ireland's property boom is disturbingly out of control.

The country relies on the stae sector for over 70% of its GNP.

I'm guess that 10xSalary is equivalent to £150,000 assuming a meagre income.

That is the price of a small house in my home town of Derry -

One point that someone made was that the Republic of Ireland had gotten rich on EU funds.

While this may have been the case what most people now believe encouraged growth was the low corp. tax and the multnational-friendly policies of the government.

This is something that NI has failed to do and is lagging behind in the development race.

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Northern Ireland's property boom is disturbingly out of control.

The country relies on the stae sector for over 70% of its GNP.

I'm guess that 10xSalary is equivalent to £150,000 assuming a meagre income.

That is the price of a small house in my home town of Derry -

One point that someone made was that the Republic of Ireland had gotten rich on EU funds.

While this may have been the case what most people now believe encouraged growth was the low corp. tax and the multnational-friendly policies of the government.

This is something that NI has failed to do and is lagging behind in the development race.

This thread was started back in April, since then NI has had a property boom and the multiple is now 13.5 times income :lol:

And what's even funnier, the banks are lining up to lend subprime loans, mostly IO though.

Gordon is going to have to go way beyond the current levels of government employees and salary levels to keep his Irish bubble from bursting.

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The sooner we return to the "Pebble Standard" the better, I remember the days when it was 3.5 Menhirs to Castle ratio.

A bag of gravel could get you a nice chalet in Scarborough.

These days you need to sell Stone Henge and Half a Quarry to buy a small 1 Bed Flat in Filey.

3.5 menhirs - that´s damned expensive.

When I was a lad you could get a 4-bedroom villa for two cows, three sheep and a concubine.

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  • 302 Brexit, House prices and Summer 2020

    1. 1. Including the effects Brexit, where do you think average UK house prices will be relative to now in June 2020?


      • down 5% +
      • down 2.5%
      • Even
      • up 2.5%
      • up 5%



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