Daft Property - Irish Property News

HOME buyers get mortgage approval from either Bank of Ireland, Permanent TSB or EBS. The buyers then find a property they want that is part of the NAMA scheme. They will need a deposit of at least 10pc of the value of the property. If they are buying a €200,000 house, this means the buyer will need a deposit of €20,000. So the house hunter borrows €180,000 from the bank and repays the mortgage based on this amount for five years. The scheme works by NAMA deferring 20pc of the value of the property, which works out at €40,000 in this case. But for the first five years the homeowner makes payments on the full €180,000 they have borrowed. If, after five years, when the property is revalued under the scheme, the property value has fallen, then the homeowner will end up not having to pay the full amount of the mortgage. This is because NAMA has deferred up to 20pc of the property purchase price. If the property falls in value by 20pc, then the €40,000 will be written off by NAMA. If it fal

Write-offs and negative-equity loans already on offer -- just don't tell everyone The debate about debt forgiveness has raged across the nation, polarising public opinion. Laura Noonan investigates what banks are really doing to help struggling homeowners. It might surprise people to know that some banks have been embarking on forms of mortgage write-offs for quite some time. And that's not all that's been going on -- some of the other new-fangled "solutions" expected to be recommended by the Government's latest mortgage expert group, like negative-equity mortgages, are already in action, too. The reason the public don't know about these developments is simple -- the banks don't want the masses to know. Because as soon as you admit things like this are happening, you run the risk that everyone will want a piece of the action. The action so far has largely been limited to borrowers who've actually left their home by way of "volu

Banks tell families -- no loans for homes... Mortgage approval plummets by 90% as banks hoard bailout cash A RECOVERY in the property market is being stopped dead in its tracks by the banks, which are turning down at least half of all mortgage applications -- mostly from people who are highly creditworthy. With many experts now convinced that the market has gone below bottom, the difficulty in accessing credit for even high-quality applicants has reached crisis point. Banks are continuing to reject applications for credit and 2011 looks like posting the worst mortgage-origination figures in four decades. On Friday AIB, which is to merge with Educational Building Society, won conditional approval from the European Commission for yet another capital injection -- this time of up to €13.1bn. It is part of more than €19bn that was approved after the latest bank stress tests and comes on top of billions in taxpayers' money that has already been pumped into the banking sector bu

Underwater mortgages: a guide to survival... Latest estimates suggest that as many as 340,000 home-owners, or one in five homes, are stuck in negative equity... HINDSIGHT IS a wonderful thing. Looking back at the prices people paid for Irish property during the boom, it’s easy to see how unsustainable they were. However at the time, despite warnings from everyone from the Central Bank to the Economist magazine that Ireland’s property market was a bubble which had to burst, banks and consumers ignored the advice and ploughed money into property, propping up prices until the inevitable collapse during 2008. Now, latest estimates suggest that as many as 340,000 home owners, or one in five homes, are stuck in negative equity and prices are still sliding . If this is the case, then people who purchased property as far back as 2003 with loan-to-values (LTVs) of more than 80 per cent, will discover that they owe more to the bank than what their house is worth. For example, at the peak of the