‘Mortgage insurance will boost supply’

Mortgage insurance will not lead to long-term price inflation and create another property bubble but can instead be a key component of a sustainable housing market, according to a mortgage expert.

Simon Crone, Genworth Financial Europe mortgage insurance vice president, says the practice of sharing risk between mortgage lenders and either private insurers or the State improves lending standards and provides another supervisory body to keep an eye on banks’ lending practices.

Rather than exacerbating the current supply shortage, he argues that mortgage insurance will lead to an increase in housing supply.