Call for overhaul of mortgage lending

BROKERS are calling for an overhaul of mortgage lending so that homeowners are only liable for the value of the house.

They want a ban on full recourse domestic mortgages, where the homeowner is obliged to cover the full mortgage even if the value of the property has fallen.

The Irish Brokers Association (IBA) said full recourse mortgage lending has “exacerbated the property implosion and the financial crisis” facing homeowners throughout the country.