Blog – McCarthy & Associates – Galway Talks, 11/12/2014

chasing the marketsIssue: Banks call for reversal of Central Bank announcement on mortgage limits. In addition a warning about spiraling rents as a result of these new measures.
Comment: There has been strong representation from a number of banks, to the Central Bank requesting that they change their attitude towards the lending limits they wish to apply to mortgages in 2015.
Whilst the Central Bank needs to regulate our financial system, it is important that they do not hinder economic growth. These new lending limits, in my opinion, will hinder the property market and it is shocking that politicians are afraid to voice their concerns about the matter, as it would appear that they are reluctant to tackle the CB.
There have been a number of comments recently that rents will increase considerably if these measures are introduced, due to the fact that so many people will remain in the rental market. This is not a situation that is appropriate for anybody and it remains to be seen exactly what changes will be introduced.

Issue: Borrowing for Christmas – very bad idea!!!
Comment: Unfortunately this is a constant issue that arises every year. People generally will get loans from credit unions or worse still through moneylenders. Another more common situation is where individuals max out their credit cards or overdraft limits (if they have one) which obviously is another expensive form of borrowing. Whilst there is no easy answer to this perennial problem, if you are in a position to be able to save on a regular basis then I would recommend that you do so to provide for Christmas each year.