How many billions set for the "Home Choice Loan" scheme?

[feargach]

This seems to have dropped right off our radar.

To recap, the HCL works like this: "Home Choice Loan is a market designed mortgage to provide access to credit for first time buyers who can afford to purchase on the open market and can afford to service a mortgage, but are unable to get a sufficient mortgage amount from a bank or building society."

The max to be borrowed from the taxpayer is €285,000 a pop per borrower.

How many billions get freed up if this scheme is discontinued?

http://www.homechoiceloan.ie/

[Asi-Irish]

I have lodged a complaint with the EC's Directorate-General for Competition about this programme.... so have many others.

[Kev408]

I'm gonna guess 23 billion?

[LeftOfCentre]

If the property is bought at todays market rate . . (ie post bubble)

Is there really any big problem????? . . . The mortgages are 92% Ltv max?

Take a single person earning 50 k pa

they want to take out a mortgage for 250k but the banks have tightened up . . .

They are currently paying 600 pm to share a flat with a stranger . . .

They have a deposit . . .

They can easily afford 1000 pm . . . to have their own 2 bed appartment . . .

I just dont see where the negitivity is comming from?

The sub prime argument does not stack up here are these applicants are far from sub prime.

And the state earns interest?

[HanleyS]

I've also made a complaint to the EU about this scheme.

[LeftOfCentre]

can you guys confirm what your opposition to the scheme is?

[HanleyS]

You can find a draft of the complaint here: Operation Digout - Anti Gov Builder Bailout Action • thepropertypin.com

I don't want to regurgitate it here.

Regarding LTV of 92%, this represents high risk in the current climate. It's sub-prime.

[feargach]

It's a question: how much will it cost us? How much can be made use of if we cut it? If they're in safe secure jobs then they're luckier than most.

When so much more pressing needs are upon us.

[LeftOfCentre]

You can find a draft of the complaint here: Operation Digout - Anti Gov Builder Bailout Action • thepropertypin.com

I don't want to regurgitate it here.

Regarding LTV of 92%, this represents high risk in the current climate. It's sub-prime.

Ok , , , The new build element might be seen as pandering to the building lobbies but it could also be seen to creat jobs and free up development capital.

The rest of the arguments ae quite spurious, and as anti government/builder as I am right now, you are barking up the wrong tree....

loaning 92% at regular rates to someone earning over 40k+pa IS NOT SUB PRIME ! ! ! . . . .It simply incorrect to say it is.

as for competition, there are no grounds for this interfering with competition because the applicant must be refused by mainstream lenders . . . who by the way are being effected by something called A CREDIT CRUNCH! . . . . NOT A CREDIT NORMALIZATION!. Not a CRED ADJUSTMENT. . A CRUNCH ! . . . . meaning credit is not flowing at a regular rate & instead is causing banks to retract lending massively to make up for PAST OVER INDULGENCE. . . .

This leads to mick the garda not being able to but an apartment in dublin. . . and not because the bank deem mick to be too high a risk, , , but because the bank are over compensating for past mistakes that mick had nothing to do with. . . .

Do you just say screw mick ! ! ! sure I lost my arse on property and he got away with it? . . . or do you give mick a hand to buy a house he should have been able to buy anyway!

Solution ? ? ? ? + homechoice loan?

[feargach]

we are looking at 100,000 new faces on the dole. They need that money.

If your buyer is so well off and is prime, why won't he get the mortgage from the bank. They are still giving them out, to prime customers.

If they turn you down, it's because you're too risky for prime. As immediate negativity applies in current markets, many potential borrowers become subprime.

Well, I think the poor unemployed need that money than he does!
Priorities.