Sir, – I believe that the existing “rules” on domestic mortgages are intrinsically unfair, or at best inequitable. If I buy a house for €200,000 with a 90 per cent mortgage, the bank holds the deeds of the house until I have paid it back €180,000, plus interest.
Fair enough. It has applied its due diligence and has made a judicious investment. This is a shared ownership arrangement with the bank holding the majority share; so it should hold on to the deeds until the balance swings the other way.
However, if during this period the value of the house suddenly collapses to €100,000, I have to accept the total loss and the bank maintains its 90 per cent share share of the now fictitious value of €200,000. Not so much of a shared, or mutual, investment anymore.
If the bank were compelled to review the value of the deeds of the property, and also its current stake in our mutual investment, this would reflect the true position of what is in effect a joint investment. Problem solved.
Of course, revaluation would not be applicable in the (more normal) circumstances of rising property values, and should only happen with the agreement of the “homeowner”.
This would put the banks in the position of serving the citizen rather than vice versa. So what’s wrong with that? – Yours, etc,
JIM HOLOHAN,
Stranorlar, Co Donegal.
Sir, – The headline over your lead story in Saturday’s newspaper (“Government to act on mortgage arrears”, March 7th) hit the bullseye. The nice ambiguity brought back to my mind another great headline , “Magistrates to act on indecent shows”. – Yours, etc,
PAT O’BRIEN,
Rathmines,
Dublin 6.
Sir, – Your headline in Saturday’s paper was “Government to act on mortgage arrears”. Political intentions at a time when an election is approaching are as credible as the abominable snowman.
Wouldn’t it be more comforting to be able to read “The Government has acted . . .”? – Yours, etc,
ROGER A BLACKBURN
Naul,
Co Dublin.
Sir, – The time is now for the Government to act on the mortgage arrears problem that is affecting one in 10 mortgage holders in the country. Procrastination is no longer an option for what is a serious social and financial difficulty.
A radical solution is required to resolve the difficulties for many people that will ultimately affect everyone in the country in some way or other.
Establish a “National Housing Management Agency” to acquire the mortgages from the banks at a discount. Then let the NHMA enter into an appropriate long-term tenant or purchase arrangement with the mortgagees.
Something must be done soon. – Yours, etc,
PATRICK O’CONNOR,
Swinford,
Co Mayo.