Mortgage Insurance Rates 2016Hypothecary insurance rates 2016
Let's start with our control charts for 2016-17 and 2018. Steuerkennzeichen for the ongoing financial year, i.e. 2017-18 is 1150L. That means the amount of exemption for the 2017-18 financial year is £11,500. The prior year, i.e. 2016-17 Steuerkennzeichen was 1100L and the person's exemption was 11,000 £. The following rates are applicable to you if your earnings exceed 11,500 in 2017-18 taxes.
Social security can be puzzling for some. We have therefore produced a guideline on the UK social security system to help us understand how it works for both employees and the self-employed.
Solving the mortgage arrears crisis - vol. 2/2016
Summarizes the latest laws, cases and emerging issues pertinent to the current effort to address the mortgage backlog issue. Mortgages outstanding and compulsory expropriations are a priority of the government programme 2016. The Fianna Fil has presented a bill (the Central Bank (Variable Rate Mortgages) Bill 2016) similar to a bill it had previously tabled in March 2015 and has entered the committee phase.
If the central bank, after a quarter-on-quarter evaluation, is of the opinion that there is a "market failure" (i.e. creditors charge higher floating rates than the central bank considers to be "appropriate and objective " on the basis of a set of factors), the central bank may limit the floating rates levied by these creditors.
In particular: certain regulations appear anti-constitutional; the Governor of the Central Bank has declared that the Central Bank does not wish to regularise interest rates. Irrespective of the concern that has been voiced, it is possible that the government of the minorities does not have the necessary figures to beat the law.
In its quarterly Economic Commentary - Spring 2016, the Institute for Economic and Social Research stated its opinion that when the legislation comes into force, "...it may act as a further obstacle to potentially significant new players in Ireland". According to the Government's legislative programme promulgated on 8 June 2016, the abovementioned Act is currently "under consideration".
This bill would suggest the creation of a new tribunal "to deal with mortgage claims and other bankruptcy cases" in a sensitive and expeditious manner. Whilst the Start Mortgages Limited v Hanley IEHC 320 judgment does not address the implementation or otherwise of the Code of Conduct on Mortgage Arrears or CCMA, taking into account an arguement put forward by Start Mortgages that it was not necessary (on the grounds of the mortgage lending conditions) to satisfy a claim against the debtor, the High court found that in reality it had never come across a creditor who had taken measures of execution against a defaulted debtor.
Specifically, Justice Max Barrett noted: "A request indicates that the failure is taken seriously by the firm; it was hard to see how a creditor could meet CCMA standards without meeting aemand. Start Mortgages' reasoning that the delivery of a notice, which was assimilated to the delivery of a claim, also went wrong, with Mr Justice Max Barrett stating that this "would go wrong in the light of the conduct anticipated by the [CCMA], a barometer to which the Tribunal is bound, to be seen as proof of general practice in banking".
The Central Bank Mortgage Regulation, which applies pro rata ceilings for loan-to-value ratios in the case of residential (PDH) and buy-to-lease (BTL) loans and loan-to-income ratios in the case of PDH loans, entered into effect at the beginning of 2015. Announcing the opening of the publication of the Central Bank's Annual Report 2015, Governor Philip Lane noted that the mortgage regulations will be subject to review in November 2016 and commented that while "...the general mortgage regulation regime will be a constant characteristic, the calendar of mortgage regulations may be strengthened, relaxed or kept unchanged...any changes will call for a high level of evidence...the Bank will be inviting paper filings to deliver evidence-based analysis of the effects of the regulations.
" Subsequently, the Central Bank issued a call for contributions and requested replies by 10 August 2016. The Central Bank confirmed in its Annual Current Account (Financial Regulation) 2015-2016, released in April 2016, that it would follow up creditors on questions raised by its Thematic Inspectorate 2015 on the CCMA.
Launched on 11 May 2016, the Partnership Government Programme indicated the following as part of the new government's plan to address mortgage questions and promote and protect home ownership: "Helpdesk ": the government will work with the central bank to devise a new "Helpdesk to Buy" schema to make sure that mortgage financing or mortgage insurance is available to first-time purchasers as new homes become available; "Capacity to pay": in the context of the central bank's revision of the Mortgage Regulation, the government will ask the central bank to consider a "Capacity to Pay" test, i.e.
assessing the ability of a prospective purchaser to repay rents on the basis of rents disbursed over a five-year horizon and offsetting them against deposits required; floating rates: a new behavioural bar gaining on mortgage supplier change is established; competition: the government will ask the government for the Competitiveness and Consumer Protection Commission to work with the central bank to explore ways of reducing the costs of mortgage credit and increasing competitiveness; mortgage arrears:
In order to guarantee a rapid solution to the residual mortgage backlogs, the government will: establish a new domestic support unit to standardize support for those facing mortgage backlogs; revise the threshold values and procedures for personal insolvency arrangements; maintain mortgage interest rate alleviation (progressively) beyond the present end date of December 2017; maintain adverse equity: The government will request the central bank to carry out an impartial valuation of banks' backlogs and lending in adverse debt.
On 16 June 2016, this Committee presented a report in which it made a number of suggestions, including: the Government should (subject to the opinion of the Prosecutor General) adopt a law on a housing repossession moratorium until the Government's suggestions (as outlined in its abovementioned government programme) are put into effect; the Government should take steps to allow it or others to purchase non-performing BTL mortgage real estate in respect of the resident retained in the real estate; and the CCMA should expressly separate mortgage and mortgage for rental.
The European Commission stated in its statement at the end of the fifth monitoring visit to Ireland after the programme that: "Although the viability of banks in Ireland has increased, it is constrained by the high level of non-performing loan assets; the proportion of non-performing loan assets in Ireland has fallen from 27 to 27. 1 per cent by the end of 2015, but this will remain one of the highest rates in the Eurozone; a "timely introduction" of the suggested credit centre (read our briefs here) would help raise credit lending rates.
As the IMF has also stated, "The central bank mortgage regulation should be retained in order to safeguard both bankers and householders. However, when the credit centre becomes operational, the credit-to-income threshold should be substituted by a credit-to-income threshold in order to better ensure borrowers' ability to repay. The May 2016 issue of its Consumer Protection Bulletin identified important developments in certain areas of the CCMA, among them:
163,962 debtors concluded the Mortgage Arrears Resolution Process from early 2014 to the end of 2015; between 87% and 89% of these debtors received an alternate redemption offer (ARA), and between 91% and 94% of these said ones were acceptable; the percentage of complaints from debtors against their non-cooperating ratings found (in whole or in part) in favor of the debtor was between 31% and 39%.
Residual mortgage lending and property redemption data for the first three months of 2016 were recently published by the Central Bank of Ireland and the Courts Service of Ireland. At the end of March 2016, 11% of all mortgage deposits were in default, representing the 11th successive quarterly decrease.
At the end of March 2016, a cumulative 85,989 mortgage lending portfolios were in default, down 2.6% from the prior sequential month. Since the second trimester of 2015, the pace at which overdue mortgage deposits are falling has been slowing. In the first three months of 2016, 1,895 lawsuits were instituted in the Irish courts to enforce safety with regard to PDRs, an improvement over the 1,687 and 894 cases instituted in the third and final four months of 2015, respectively.
However, this means a 32% reduction in the number of cases opened compared to the same figure in 2015, when 2,788 cases were opened, and a significant reduction compared to the high of 3,274 in the second quater of 2014. In the first three months of 2016, a combined 297 orders for PDH and non-PDH ownership were submitted to the High Court and Circuit Court, a drop of 314 (51.39%) over the same time frame in 2015.
Out of a population of 297, 284 ownership orders were filed with the District Court, which contrasts with the 586 orders filed with the District Court in the first three months of 2015. However, this is in line with the downwards tendency in the number of court orders over the course of 2015, which fell from 586 in the first quater to 210 orders in the last quater of 2015.
There was a separate continuation of the decline in orders of occupancy before the High Court, with 13 orders in the first three months of 2016 compared to 25 orders in the same six months of 2015. In the first three months of 2016, the overall number of SDHs finally withdrawn as a result of High Court and Circuit Court rulings was 139.
It is lower than any quarterly in 2015, when the overall number of recovered PDHs in 2015 was 726. Compared to the median number of reoccupied units in each of the quarters of 2015, this corresponds to a 23.4% reduction. Continued reduction in the backlog has been very upbeat.
Nevertheless, the emphasis remains on mortgage backlogs at policy and regulator oversight and changes in the legislative and regulator oversight framework may impact on the easiness with which execution measures can be taken, which may be important for buyers and lenders of housing mortgage lending portfolio.
If adopted, the proposed regulation of floating mortgage rates may have an effect on competitive conditions in the mortgage markets, but much will hinge on whether the central bank makes use of its right to set ceilings according to its own quarter-on-quarter valuations.