100% Mortgages: No house price boost ?

C

CoffeeBrew

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100% mortgages to have a minimal effect ?
Perhaps destined to always remain a small percentage of overall mortgages..

ONLY 36 of the much-hyped 100pc mortgages were sold in the first two months of their existence, out of a total of 7,000 home loans drawn down during the period.
The Regulator's chief executive, Liam O'Reilly, said yesterday that he would be very concerned if 100pc home loans became widespread.

Mr O'Reilly plans to introduce a sliding scale which would mean higher reserves on most mortgages. The new 100pc loans would have to be fully covered, but even 80pc mortgages would have to carry more than the current 4pc reserve.
The move could prove controversial, since it may reduce the amount the banks are willing to lend.
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http://www.unison.ie/irish_independent/stories.php3?ca=184&si=1459612&issue_id=12934
 
jhegarty said:
The guy I spoke to in PTSB said they were rushed off their feet with all the 100% applications....
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There's applications.......and then there's approvals. Not necessarily the same.

Financial regulator seems to be indicating willingness to act in contrast to a few weeks ago.

If we saw that they were becoming widespread, we would go into the institutions to make sure they had not reduced their affordability rules or were selling them to the wrong customers," Mr O'Reilly said.
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