MEP Hayes calls for ECB to buy Irish tracker mortgages

Dublin Fine Gael MEP Brian Hayes is calling on the European Central Bank to use its Asset Backed Securities programme to buy Irish tracker mortgages.

It is hoped the move would improve the balance sheets of Irish banks.

There are 375,000 tracker mortgages in Ireland. All of them are loss-making as the interest rates are just a 0.25%.

Founder and managing partner with Checkrisk Nick Bullman said if the ECB were to agree to this proposal it would not affect Irish mortgage holders.

"The banks are holding assets on their balance sheet like mortgages and loans which are negative in terms of profit and so they're clogging up their ability to lend on the market.

"So by packaging those and selling them to the ECB, they will receive cash in return for those...and can then re-lend into the market.

"The mortgages would beheld by the ECB, so it wouldn't affect mortgage holders."