John Ellis

Pressure on to ease mortgage loan rules

BY JOHN ELLIS

FINANCIAL ADVISOR

THE Central Bank is coming under increasing pressure to loosen its mortgage rules from the Banks and the Government. And, according to a recent RED C poll on behalf of bonkers.ie, it appears the public wants change too. e poll shows there is strong support for a loosening of the Central Bank’s mortgage lending rules to make it easier for people to get a mortgage. Bank lending rules state that the maximum mortgage available to a borrower(s) is 3.5 times of income. A rst-time buyer borrower must have a deposit of at least 10% while a second time buyer or movers must have at least 20% of the purchase price. (However, a very limited number of exceptions to the rules are allowed each year.) e rules were brought in to ensure nancial institution lend in a more prudent and sensible manner. Prior to the 2008 nancial crash banks gave 100% + mortgages. Customers were allowed to borrow against the equity of their properties including the family home to purchase properties all over the world! en On March 17, 2008, stock markets around the world tumbled, including Dublin’s ISEQ index, contributing to the Irish banking crisis with the collapse in asset prices, an economic recession, and the near failure of the banking system. e global crisis did aggravate matters in Ireland but the banking crisis was largely self-in icted according to a study published in the Journal of Financial Regulation and Compliance. It stemmed from the collapse of the domestic property sector and subsequent contraction in national output. e collapse was due to the risk management practices of the Irish banks and the failure of the nancial regulator to supervise these practices effectively. Due to pressure from many sources last week the Central Bank announced that its mortgage lending rules are to remain the same for at least another year but they are currently undertaking a more indepth review of the rules . ey invited online feedback from the public and interested parties earlier this year and will review the RedC poll research with interest; a nationally representative sample of just over 1,000 adults (+18) in the Republic of Ireland during November. It showed that 64% of people say they are in favour of mortgage seekers being allowed borrow more than 3.5 times their income, provided they can demonstrate their ability to repay. is compares to 18% who say they are against allowing people borrow more. A further 13% said they neither agreed nor disagreed while 5% expressed no opinion.

At 70%, those aged between 35 and 44 were most likely to say that the Central Bank’s loan-to-income rule should be relaxed. e research also showed strong support for a lessening of the deposit requirement while 53% of people agree that the minimum deposit requirement of 10% for rst-time buyers is too high and should be lowered. is compares to 27% who disagree with any change to the measure. And, in a separate question, 41% of people said there should be no deposit requirement at all, provided mortgage seekers can demonstrate the ability to repay their mortgage. Commenting on the research, Daragh Cassidy, Head of Communications at bonkers.ie says: ““No one wants a return to the reckless lending of the past. However, the current rules, while well intentioned, would appear to be helping contribute to a dysfunctional housing market…. as people can’t get a mortgage of su cient size or save up the deposit.

“However, we need to be careful about what we wish for. Given the limited supply of housing at the moment, any loosening of credit rules without a corresponding increase in the level of housing output, could simply lead to an increase in property prices.” is feedback and the online input will help inform the Central Bank’s decision on whether the rules should be tweaked more substantially in the future. A decision is expected this time next year.

John@ellis nancial.ie 086 8362633

Teac Tom: Post-pandemic challenges for young people’s mental health

Teac Tom has been supporting people’s mental health in the community of Kilkenny since 2014. One of the key groups that avail of our therapeutic support are young people. To facilitate them we provide play therapy to children and adolescent therapy, using speci cally trained psychotherapists, to teenagers.

Increase in Under-18s

e last two years have had an incredible impact on the lives of young people. Teac Tom has seen a continuous increase in the number of 13-18 year olds entering therapy; in the last two years alone that number has doubled. e main reason for this group contacting our service was due to anxiety about friendships and school disruptions during the lockdown. e breakdown of regular contact with the structure of school, induced feelings of worry or fear for many. Young people depend on this structure to give them certainty as they move through the stages of physical and emotional development during adolescence. e feeling of not tting in, not being smart enough, not being good enough or being picked on were the commonly reported issues from our clients. ese fears prevented them from going to school, meeting friends, and participating in activities. Parents became very worried and tried to help – but as we all know, teenagers often nd it di cult to speak to their parents about these things. Trying to make sense of what was happening while at the same time trying to move back to normality, led to distress for parents, teenagers, and children.

How Teac Tom can help

Teac Tom provides a safe space for families to come and get support to help alleviate distress. e lockdown was not normal, arriving for young people at a period of life where huge change happens in a relatively short space of time. It is important to understand that responding with fear, anxiety, worry and anger to an abnormal situation is a normal reaction for many young people. At an age when teenagers are ghting to make sense of themselves, and the structures around them to t in, therapy can help guide a person safely through those di cult years. Most importantly the therapist is outside the family and provides a safe space for the young person to talk more freely. Without these accessible supports the mind can become stressed and self-doubt can creep in. Unfortunately, being human causes you to doubt things, and when you are not interacting with your friends, teachers, and other interests you can begin to doubt yourself. Doubt causes fear, that results in anxiety. Teac Tom helps teenagers uncover their individual di culties and communicate their needs to parents, while also helping build strategies to instil courage to face these fears. Early intervention and working with the whole family in talk therapy has been proven to be a huge support and sees young people moving out of anxiety and back to the journey of self-discovery. Access to services, therapists and space is essential for this early intervention. At Teac Tom, we pride ourselves on being accessible in a timely manner to those who need us.

Steps to Availing of our Services

1. To avail of the service the parent books an initial appointment

where we meet with both the young person and the parent. 2. At this appointment we discuss how the therapy works, how often it takes place and limits to con dentiality. 3. With parental consent the young person engages with the therapist on a one-to-one basis for their rst session of counselling. is will happen within two weeks of the initial appointment. 4. Over time the young person and therapist feedback to the parent what the issues may be and possible solutions of how we can work together to resolve it. 5. As always, our service is free for those who need to avail of it. If clients can do so, we ask that they make a donation to help us cover our counselling costs.

Teac Tom does not o er a diagnosis of mental health condition or a medical intervention, but we can work in conjunction with a GP, schools and other professionals to help facilitate a wrap-around service for the young person. To support this work with adolescents we o er a Community Engagement Programme where we visit schools and do talks to groups of students around their mental health.

Community Engagement Programme

Working with schools, sports and youth clubs, we strive to reach out to young people in the community to provide early intervention and education on mental health. When the need arises, we are there to provide crisis support in the event of a suicide. Our team can deliver a talk that has a simple but e ective approach. CEO and founder of Teac Tom, Angela Hayes shares her deeply personal and tragic story of dealing with suicide; rst her husband and then her son, 9 years later. is powerful story leads to a discussion around mental health and in particular the importance of talking and sharing a problem. is discussion is facilitated by a trained counsellor who is on hand to answer any queries that may arise.

An important element of the Community Engagement Programme is the de-stigmatising of mental health issues – particularly important in a school environment where bullying, low self-esteem and exclusion can happen. To date we have had extensive and very positive feedback from teaching sta as well as those who have participated in these talks.

Our goal is to have a positive impact on the mental health of our community now and into the future. By addressing problems in childhood and adolescence we will ensure that the transition into adulthood is managed e ectively. If our young people learn to address their mental health needs in the same way they address their physical needs, then they can progress through the hard stages of life with positive mental health.

If you would like any further information on our Community Engagement Programme, counselling services or to book an appointment, please get in touch with our team.

thethomashayestrust@gmail.com / 056 7796592 / Follow us on Facebook and Instagram @teactom