User Preferences

  • Language - en | ga
  • text size >>
  • make this your indymedia front page make this your indymedia front page

Blog Feeds

forward

Dublin Opinion
Life should be full of strangeness, like a rich painting

offsite link THE WORLD COULD SORT OUT EBOLA FOR THE PRICE OF ONE BONO 23:07 Tue Nov 18, 2014

offsite link WELL THAT?S IRISH WATER FINALLY SORTED OUT 23:04 Tue Nov 18, 2014

offsite link 1916 in 2016 08:47 Mon Nov 17, 2014

offsite link IRELAND, POLAND AND FRACKING 07:56 Mon Nov 17, 2014

offsite link WHEN IT COMES TO THE BANKS, LEAVE PLOT AT THE DOOR 22:24 Fri Nov 14, 2014

Dublin Opinion >>

Irish Left Review
Joined up thinking for the Irish Left

offsite link We Won?t Back Down: Statement from Communities Against Water Charges Sun Nov 23, 2014 17:17 | Irish Left Review

offsite link Guaranteeing Recidivism Thu Nov 20, 2014 17:07 | Donagh Brennan

offsite link The Blue Moon Women Thu Nov 20, 2014 09:55 | Anne Irwin

offsite link The Road To Ireland & The Water Thief Wed Nov 19, 2014 22:29 | Owen Gallagher

offsite link The Crisis of Irish Democracy Wed Nov 19, 2014 12:15 | Bryan Wall

Irish Left Review >>

NAMA Wine Lake

offsite link Farewell from NWL Sun May 19, 2013 14:00 | namawinelake

offsite link Happy 70th Birthday, Michael Sun May 19, 2013 14:00 | namawinelake

offsite link Of the Week? Sat May 18, 2013 00:02 | namawinelake

offsite link Noonan denies IBRC legal fees loan approval to Paddy McKillen was in breach of E... Fri May 17, 2013 14:23 | namawinelake

offsite link Gayle Killilea Dunne asks to be added as notice party in Sean Dunne?s bankruptcy Fri May 17, 2013 12:30 | namawinelake

NAMA Wine Lake >>

Banks seeking to artificially inflate house prices

category national | housing | other press author Wednesday September 09, 2009 11:22author by Stoph Report this post to the editors

From Respond! Housing Association

Respond! spokesperson Aoife Walsh asserts that many buyers are unable to access mortgage finance as it is not in the interests of the banks to lend to those seeking mortgages less than €150,000.

Banks seeking to artificially inflate house prices
19 Aug 2009
Respond! News
Ireland’s largest housing charity fears that Irish banks may be distorting the property market. Respond! Housing Association is concerned that some banks are not lending below certain levels in order to maintain higher house prices. The effect of this policy is that house prices are remaining artificially high which is important for banks prior to the assessment of house and land prices by the National Asset Management Agency (NAMA).

Respond! spokesperson Aoife Walsh asserts that many buyers are unable to access mortgage finance as it is not in the interests of the banks to lend to those seeking mortgages less than €150,000.
“It was recently reported in the media that some young people seeking mortgages for €150,000 were being refused on the grounds that banks are now operating a minimum mortgage amount. Considering the number of vacant properties currently in the country, this is a scandalous situation. Respond! has witnessed some strange banking decisions in relation to some of our own affordable properties whereby applicants who seem to fit the criteria perfectly are not able to access a mortgage of less than €130,000. This is in spite of having the adequate income. It is akin to the shopkeeper withholding goods in order to stimulate demand so that higher prices can be charged. We are calling on the Competition Authority to take note of these practices and protect the Irish Consumer.”

Respond! argues that banks should be lending to fully qualified applicants irrespective of the cost price of the house. Banks in receipt of the Government Guarantee should be making mortgage finance available to those with the ability to repay according to the housing charity. Given the number of vacant properties, banks should be facilitating potential homeowners and not hindering them. This is critical in order to boost the housing market and restore confidence once more.

“It seems clear to us that banks are trying to keep pricing levels elevated ahead of the establishment of NAMA” added Ms Walsh. “It is in their interest to keep house prices artificially high and this could result in NAMA paying too much for the bad loans the banks will be transferring to it. This does not represent value for money and once again it will be the Irish taxpayer who will be forced to pay for the actions of our banks. “

Respond! maintains the number of vacant properties in Ireland is set to rise in the future. With the number of repossession cases before the courts increasing every month, and with little information available on the suspected high level of voluntary home surrenders, the housing market could soon be flooded with even more empty properties. This is not good news for an already struggling property market says the housing charity.

Related Link: http://www.respond.ie/Media_Detail.aspx?rowid=246561
© 2001-2014 Independent Media Centre Ireland. Unless otherwise stated by the author, all content is free for non-commercial reuse, reprint, and rebroadcast, on the net and elsewhere. Opinions are those of the contributors and are not necessarily endorsed by Independent Media Centre Ireland. Disclaimer | Privacy