2 2 mins 10 yrs

Here’s a sobering insight into the state of the Irish ec0nomy;

“Up to eight out of every 10 applications for a mortgage are being turned down.

The lack of lending is one of the main reasons the property market continues to crash, economists have said. A survey of mortgage brokers, who are members of the Professional Insurance Brokers Association (PIBA), found that the situation is worse than it was last year for people seeking home loans.

A majority of brokers reported that between six and eight out of every 10 mortgage applications were declined in the second quarter of this year, PIBA’s survey found.

The main reason that applications are being refused is because of concerns over job security.

Lenders are turning down potential new buyers because the applicant has not been in current employment for sufficient time or their employment is a fixed contract rather than permanent.”

This failure to lend can be seen as lenders being prudent but it undoubtedly must have an impact on the property Market, the construction Trade and all affiliated service sectors. The Irish economy has so many structural stresses within it and you have to feel sorry for anyone seeking to get on with their lives. Of course with the circus for the role of Irish President filling the media headlines, I wonder will this even be noticed?

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2 thoughts on “NO DEAL!

  1. The downward economic spiral continues unabated like a flushed toilet out of control.

    As I pay my meagre mortgage on a very small bungalow, without a huge plasma screen telly and a 10-year old car in the driveway, I sit in front of a warm fire sipping my glass of vintage 1996 Chateau La Mondotte Saint-Emilion and read about the growing job losses and mortgage defaults and my Schadenfreude escalates.

    Sieg Heil! Frau Merkel!

  2. So many decry the fall in property prices and values, – and yet it is the over borrowing on over valued property, both private and commercial, that has largely been the cause of the current financial crisis.

    Both in the UK and in the US, standards for loan qualification have fallen so low, that lenders were literally scraping the bottom of the barrel to find new borrowers.

    It has been the quicksand on which, not only has the concept of personal wealth, but also national wealth has been built.

    That the blame has been placed solely on ‘the bankers’ is yet another example of some wonderful political sleight-of-hand, – of course they couldn’t have done it at all without the complicit involvement of politicians on both sides of the Atlantic.

    It was a win-win situation for both parties, – the bankers made money, and the prats, felt good in deluding the public that all was well with the economy, – and enjoyed unearned kudos for apparently working miracles.

    If the politicians had done their job properly, and had not exacerbated the UK’s overcrowding problem by allowing unfettered immigration, – albeit, at the behest of the EU, then perhaps we would have seen affordable housing, – not necessarily owned by local councils, – as more of an essential for communal wel being, rather than as an investment opportunity, and may have thus avoided the misery which many will now suffer as a consequence.

    For many decades governments have boasted of growth in GDP, completely ignoring that much of the ‘growth’ has been due to inflation, and rarely due to increased overall productivity, much of the growth of the past fifty years has been of the ‘smoke and mirrors’ variety, and growth in general income has likewise been more influenced by inflation than productivity.

    When the inflation levels have got too bad, we have had the sort of Wilson ‘pound in your pocket’ devaluation of currency, and as a last resort we now now ‘quantative easing’, – yet another euphemism for – inflation!

    As government spending has increased in real terms it is hardly surprising that our national and personal borrowing now far exceeds our ability to repay it.

    It isn’t just in the UK that this has happened, the US and most of Europe have been doing exactly the same things, and it seems that playing the ‘inflation game as a means of debt repayment has reached the end of its days.

    If we have all exhausted our borrowing capacities, just how can we buy and import the raw materials we need to make the goods to export, – service industries just cannot do the job, especially as any customers we might have had, find themselves in the same boat as ourselves.

    The last three years of bail-outs and other measures just haven’t worked, and never will, so I guess we are all in for a pretty rough ride ahead…

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