100% Mortgages: No house price boost ?

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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CoffeeBrew said:

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



http://www.unison.ie/irish_independent/stories.php3?ca=184&si=1459612&issue_id=12934

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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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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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