Mortgage proposal ‘manifestly unthought out’

A proposed State-backed mortgage solution that would see county councils pay a portion of a borrower’s repayments directly to the lender has been described as “manifestly unthought out”.

New Beginning co-founder Ross Maguire said the plan would “on first glance, fall apart”. The proposal, whereby payments on a split-mortgage would be divided between the borrower and their local county or city council, was suggested by the Irish Mortgage Holders’ Organisation.

A split-mortgage sees the loan divided into two parts. One is warehoused with the balance on that portion not repayable until the end of the mortgage term and the other has payments made in the interim.