Borrowers to be rigorously stress tested

PEOPLE who want a mortgage will have to be properly stress tested and lenders will have to paint a true picture of what they are offering under draft proposals from the European Commission.

While the new rules, intended to ensure there are no more property bubbles in the EU, will come a little too late for many Irish householders, it should help once the market recovers.

Irish mortgage holders have gone from a situation of taking out multiple loans on their property to paying them off as quickly as possible.