The Ryan Review
So, we're all over the idea that there's another bubble forming in the Dublin housing market, are we? Good. The very definition of a bubble demands easy, cheap credit and the latest figures refute that firmly. Dublin is a good, old-fashioned supply and demand issue, nothing more.
According to the Association of Expert Mortgage Advisors (AEMA), the total value of new mortgage lending in the third quarter of 2013 was €750 million, a tenth of what it was in 2007, admittedly far too high then. However, experts suggest the optimum size for Ireland's total mortgage market is now €10 billion, three times its current value.
2013 mortgages were small (averaging just €150,000 for first timers who made up over half of all applications) and extremely hard to access -- to wit: the increasing rental demand.
The third quarter showed an increase of 10pc and one hopes this will be replicated throughout 2014 especially as brokers are now seeing a sharp decline in the number of rejections.
Anyone looking for a mortgage now would be well advised to build in a comfortable two percentage points to variable rates, despite the ECBs caution on low inflation.
They need to show clear evidence of deposit savings (not borrowings), and a clean credit history remains absolutely vital.
Something as small as having a bookmakers' account app can throw off an application according to one broker.
Finally, definitions of 'income' are ever tighter with bonuses, overtime and other extras not making the grade on application forms.