"The Middle Classes Are At the Limit" 30% of Mortgage Payers Fear Losing their Homes

[Spectabilis]

Brian Hayes wants me to feel sorry for the banks and give up my tracker for the kind of variable mortgage that increased eight times in the noughties? It is April 7th not April 1st.

"Mr. Hayes said the government is also hoping to address the problem of about €30 billion in loss-making tracker home-loan mortgages held by Irish banks. The mortgages are losing money for banks because the loans cost customers very little above ECB rates, and don't adequately reflect the costs incurred by the banks....



"I think people recognize that they are a noose around the [lenders'] necks," he said."



http://online.wsj.com/article/SB1000...YWORDS=ireland

[concernedparent]

Brian Hayes wants me to feel sorry for the banks and give up my tracker for the kind of variable mortgage that increased eight times in the noughties? It is April 7th not April 1st.

"Mr. Hayes said the government is also hoping to address the problem of about €30 billion in loss-making tracker home-loan mortgages held by Irish banks. The mortgages are losing money for banks because the loans cost customers very little above ECB rates, and don't adequately reflect the costs incurred by the banks....



"I think people recognize that they are a noose around the [lenders'] necks," he said."


http://online.wsj.com/article/SB1000...YWORDS=ireland

Well if the shoe were on the other foot and a private enterprise was facing the bank with a similar issue, it would be told pretty sharpish to cut its costs.

[fluffybiscuits]

Brian Hayes wants me to feel sorry for the banks and give up my tracker for the kind of variable mortgage that increased eight times in the noughties? It is April 7th not April 1st.

"Mr. Hayes said the government is also hoping to address the problem of about €30 billion in loss-making tracker home-loan mortgages held by Irish banks. The mortgages are losing money for banks because the loans cost customers very little above ECB rates, and don't adequately reflect the costs incurred by the banks....



"I think people recognize that they are a noose around the [lenders'] necks," he said."



http://online.wsj.com/article/SB1000...YWORDS=ireland

Hayes must be off up in the clouds is he? They cant force peopel to give up tracker mortgages and now that interest rates have dropped people are paying less for their mortgage ...

[Baron von Biffo]

Hayes must be off up in the clouds is he? They cant force peopel to give up tracker mortgages and now that interest rates have dropped people are paying less for their mortgage ...

Unless there's a provision to that effect in the mortgage, the much derided constitutional protection of property rights should save people from any government impulse to force them abandon their trackers.

[C. Flower]

Davy says that banks should foreclose on more mortgages, particularly buy-to-lets.
http://www.breakingnews.ie/ireland/b...st-563384.html

[Baron von Biffo]

Davy says that banks should foreclose on more mortgages, particularly buy-to-lets.
http://www.breakingnews.ie/ireland/b...st-563384.html

It makes sense. There's nothing to be gained by delaying inevitable default and foreclosure. Better to bring matters to a head as soon as possible and let all of us get out of this mess.

[Dr. FIVE]

40 years and older teachers had the largest average equity release mortgages during the boom

http://namawinelake.wordpress.com/20...lder-teachers/

[Baron von Biffo]

40 years and older teachers had the largest average equity release mortgages during the boom

http://namawinelake.wordpress.com/20...lder-teachers/

A horrible dilemma for those who want mortgage write down but who hate PS workers.

[ang]

David Mc Williams - AUSTERITY CAN’T HELP — WE’RE HEADING FOR MASS DEFAULTS

If a housing bubble can bust with collapsing prices, so too can a debt bubble with mass default.

For those looking for an end to all this, the default period signals the beginning of the end of the slump because this is the moment of realisation for both debtors and creditors that the world has changed irrevocably and in order to go forward, we can’t go back to the past. Contracts signed then, in good faith, simply can’t be delivered on because the new environment of falling prices and diminished income and wealth simply make this impossible.

The more new capital is used now to pay these old debts, the more fresh capital is wasted trying to make legitimate poor investment decisions, which were based on nothing more than “hot air” in the first place. It is throwing good money after bad, the ultimate expression of “dead money”.

http://www.davidmcwilliams.ie/2012/0...-mass-defaults

[C. Flower]

David Mc Williams - AUSTERITY CAN’T HELP — WE’RE HEADING FOR MASS DEFAULTS

http://www.davidmcwilliams.ie/2012/0...-mass-defaults

Nothing new, but it needs to be spelled out that austerity will not bring recovery and he does this clearly. McWilliams seems to be recommending a mass default by mortgage payers. Fine - but then what. Either bail out the banks or let them go. And then what ?

[ZeroWedge]

If you think a €15bn budget deficit is austerity, then youve got a rude awakening coming to you next year. This is nothing compared to what is coming. Next year is going to be savage. And 2014 too. During the last months of the Fianna Fail government, they kicked a huge time bomb a couple of years down the road. That started to explode this year with the Prom Notes. 2013 will be worse. And 2014 will be like a nuclear winter. The tax rises and spending cuts are going to be absolutely savage

People need to prepare now. Learn how to live frugally. Preparing now will make the transition to poverty, a lot less traumatic.

[C. Flower]

If you think a €15bn budget deficit is austerity, then youve got a rude awakening coming to you next year. This is nothing compared to what is coming. Next year is going to be savage. And 2014 too. During the last months of the Fianna Fail government, they kicked a huge time bomb a couple of years down the road. That started to explode this year with the Prom Notes. 2013 will be worse. And 2014 will be like a nuclear winter. The tax rises and spending cuts are going to be absolutely savage

People need to prepare now. Learn how to live frugally. Preparing now will make the transition to poverty, a lot less traumatic.

There are some people who intend to drink their way through it on Bollinger.
You may be quite sure that not everyone intends to experience poverty.

People do much better, where they organise and act in groups and where there is social responsibility and accountability.

[ZeroWedge]

40 years and older teachers had the largest average equity release mortgages during the boom

http://namawinelake.wordpress.com/20...lder-teachers/

Just proves that it was the public sector who drove up property prices more than any other group in society. They had the greatest access to credit, due to their "jobs for life". Everyone knows that banks prefer to lend to public sector "workers". And they took advantage of that to build personal property portfolios more than any other group.

The banks must now ruthlessly repossess their buy-to-let portfolios, and make them available for young people without debt, to purchase, at a free market price, ie below cost.

[ZeroWedge]

There are some people who intend to drink their way through it on Bollinger.
You may be quite sure that not everyone intends to experience poverty.

Yes, Im aware the public sector millionaires have gotten themselves nicely insulated, with the Croke Park Agreement.

[Baron von Biffo]

Just proves that it was the public sector who drove up property prices more than any other group in society. They had the greatest access to credit, due to their "jobs for life". Everyone knows that banks prefer to lend to public sector "workers". And they took advantage of that to build personal property portfolios more than any other group.

The banks must now ruthlessly repossess their buy-to-let portfolios, and make them available for young people without debt, to purchase, at a free market price, ie below cost.

Obviously some safeguards would have to be put in place to prevent young PS workers availing of your excellent proposals.