Finance sector warned on loans

THE Financial Regulator has urged banks and credit unions to be careful when issuing new loans.

The regulator said that while it was not opposed to 100% mortgages, financial institutions must be responsible when issuing interest-only mortgages.

“Those products are not suitable for everybody. There are people in the market for whom they are suitable and it would be wrong to inhibit their choice,” Patrick Neary, Financial Regulator’s office chief executive said.