Of Interest Only

This report from todays Indo, on growing concerns of the consequences of lax lending by Irish Banks.

A MORTGAGE crisis is looming for first-time buyers over the aggressive marketing of interest-only and 100pc mortgages by banks and building societies, the Consumers' Association said yesterday.

Figures in a research report by Davy Stockbrokers estimated recently that up to four out of every 10 mortgages sold to first-time buyers are now 100pc homeloans. The report also found that the average first-time buyer was being offered a 35-year mortgage in a bid to counteract rapidly rising housing prices.

Yesterday, chief executive of the Consumers' Association Dermott Jewell said the promotion of 100pc and interest-only mortgages was "dangerous and an accident waiting to happen". "We were promised by the financial industry when these products were introduced that they would only be offered to a certain few. That is certainly not the case now."

The words closing, stable, and door spring to mind. Ho hum.