Independence urged for loan scheme
The practice — which sees mortgage lending risk shared between lenders and either Government or private insurers — can lead to lower interest rates, more affordable mortgage loans, lower arrears levels, less risk to lenders and greater access to the housing market for first-time buyers.
Finance Minister Michael Noonan is considering introducing such a scheme — already widely used in North America, Australia and parts of mainland Europe — as part of the Government’s ‘Construction 2020’ strategy plan. It would be directly aimed at high loan-to-value mortgages, where the borrower has a low deposit level.
