Government bailout for developers

[Mustang]

Well here it is folks, the caring sharing government want us to believe that they have the interests of first time buyers at heart, to this end they are going to assist them in purchasing their first home.
Details of the scheme are on this site http://www.homechoiceloan.ie/
Launched weeks ago before the budget. Essentially the FTB, must have been refused credit by a major financial institution. So once the bank has decided that the applicant or the property is a bad risk, the government will step in and provide finance. Essentially making the government a sub prime lender. At a time when the global financial markets are in melt down due to sub prime lending, the government has decided to jump onboard. Why does the FTB need this help when prices are falling????? Where was the help when prices were higher, and rising month on month in recent years? The scheme is only available for the purchase of new houses. What's wrong with a second hand house?
The answer is that the sale of a second hand house does not benefit developers. At a time when prices are falling the government, under the guise of helping FTB's is going to saddle them with huge debt, in order to bailout the developers helping them to clear the huge stock of unsold, unwanted overpriced houses. The government has put it's hand in everyones pocket, taken from the elderly, plans to saddle a generation of FTB's with debt, and will give the money to developers. It makes me sick.

[Muad_dib77]

I agree mustang - that scheme is wrong on so many levels..

Why jump onto a sinking ship, especially in todays financial climate?

[soc]

It might interest you to know that this website was actually registered on 11th September 2008. The government (and Tom Parlon) have been working on this for some time now!

http://www.iedr.ie/cgi-bin/whois.cgi?wh ... e&x=29&y=9

Is it not very surreal how we've ended up in a situation where taxpayers are now guaranteeing bank liabilities with a likely risk of having to cover the banks cost of this guarantee through increased bank charges while simultaneously providing the funding for sub-prime lending through the governments local authority loans.

FF, PD and Greens are going to kill this country. BOI are on the edge, Irish pension funds are down 40%, big developers have their backs to the wall and what do the government do???? They find a way to save the banks without any reform and prop up developers with sub-prime mortgages.


You should have a browse around www.thepropertypin.com and you'll get the full picture

[colm_mcm]

Is the lending criteria less strict than the banks were, say 1 year ago? I doubt they'll just throw money around to anyone.

[soc]

Is the lending criteria less strict than the banks were, say 1 year ago? I doubt they'll just throw money around to anyone.

Absolutely the lending criteria will be less strict - one of the criteria for applicants is that you must be able to prove you have been refused a mortgage from a bank!