Housebuilding group Abbey: Bring back 95% mortgages

Housebuilding group Abbey has called for the reintroduction of 95% mortgages and some relaxation in the Central Bank’s controversial lending rules as a way of reviving the residential property market.

Speaking yesterday, on the back of a strong set of annual results, Abbey’s executive chairman Charles Gallagher said while he has no real problem with the Central Bank’s caps, the introduction of 95% mortgages for first-time-buyers on transaction values of up to €250,000 would be a major help; adding that “allowing first time buyers to buy their first house is important and reasonable”.

Barclays, in the UK, recently became the first lender to do away with deposit rules and resurrect 100% mortgages since the financial crisis in 2008.